A Guide to Navigating the Maze of Buy to Let Ownership

Wednesday, February 23rd, 2022

Are you considering purchasing a buy-to-let property and becoming a landlord?

Having a thorough understanding of the processes and pitfalls is essential. Whilst many people already own investment property, for those who have ambitions to do so, what is not always so well understood are all the considerations and decisions that need to be made when seeking to take on a buy to let property.

In fact, many will directly impact a property’s ‘status’ and go on to have consequences with regards to the various options that may be available when raising a mortgage.

It is also important that many decisions are made in advance and not as an afterthought, as the implications of “changing the plan” can prove expensive or even mean that mortgage terms could subsequently be breached.

Some Important Considerations

The key considerations when owning or buying a buy to let property are:

Although there are other considerations and scenarios, answers that flow from the above list will help define the property and categorise it as one of the following types:

The categorisation of the type of property and tenant(s) helps to identify the correct type of mortgage that can be raised and secured against the property. As the mortgage provided will have certain conditions in relation to the declaration made by the landlord regarding its intended use, it is important to note that prior consent from the lender would be required in relation to any change of use.

Caboodle Finance Are Here to Help

The potential pitfalls and consequences of getting some or all this process wrong can be avoided by using the services of a professional buy to let mortgage broker who will establish the facts together with any other pertinent information to determine what type of mortgage will be required, and very importantly, which lender(s) may be able to provide it.

In order to find out more about how our experts could help you navigate the maze of Buy to Let ownership, call our friendly team here at Caboodle Financial Services of Sutton Coldfield, Birmingham on 0121 308 9114, or alternatively, just complete our online enquiry form HERE and we will be in touch.

We very much look forward to hearing from you.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. There will be a fee for secured loan advice and the exact fee will depend on your circumstances. The fee is only payable on completion and can normally be added to the loan. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England and Wales at Mere Green House, 46-48 Mere Green Road, Sutton Coldfield, West Midlands B75 5BT (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

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