Buy to Let & Landlords Q&A

Welcome to My Property Hub's Q & A, where we aim to answer the difficult questions that keep cropping up again and again. If you have any questions or comments, please get in touch via our online contact form . We kick off with the ever popular topic of buy to let finance:

Buy to Let Finance... Your questions answered

Q: How can I finance my property purchase?

A: When choosing a buy to let mortgage, it is important to make sure that you find the right broker. They should have the experience to guide you through the process step by step, make sure that the mortgage will meet all of your requirements and have a proven high level of service. Even more important than this, a good independent broker will look after you and help you develop your portfolio in the most profitable way.

Q: Will I be able to borrow more than I have on the current mortgages to pay for another property?

A: This all depends on how long you've held the properties for, whether you have released equity from them recently and how high the rental income is relative to the value of the property. Contact your dedicated consultant to do the calculations on the maximum loan you can achieve on your property.

Q: On the home I live in I have a flexible mortgage, which allows me to overpay and underpay. Can I get the same sort of deal on my buy-to-let properties, so that when they're empty I can pay less and make up the difference when they're occupied?

A: Most buy to let lenders will allow you to overpay and the amount you can overpay by depends on the lender. It is less common for a lender to offer a facility whereby you underpay. A lot of professional investors don't actually overpay on their investment properties. They tend to just pay the interest, keeping the cost of the mortgage to a minimum so that the property is self-financing allowing them to borrow more money to reinvest in further properties. They see little benefit in the repayment option as this eats into their cash flow and does not fit in with their long term objectives. Many investors see the key to having a successful portfolio is to buy as many properties as possible and to make sure you have sufficient funds in reserve to cover any void periods or maintenance costs.