Low Rental Buy to Let Mortgages

• The property is let to long term tenants and the rent charged is well below market rent
• The property is let at market rent – however, due to competition from other landlords in the local area, the market rent is low
• The property is let at market rent – however, given the high value of the property (typically in London, the rent wouldn’t be sufficient to service a large mortgage.

We work with a number of lenders that are happy to consider low rental yield properties. They would typically consider up to 85% of the property value on an interest only or repayment basis. Additionally, they can look to use the actual market rent and/or some personal income to “top up” the rental income received to cover the mortgage payments on the property.

Clients have told us that they may have approached their own Bank/Building Society for a buy to let mortgage on a low rental yield property and have been unable to obtain the mortgage amount they require.

Clients approaching us to arrange a buy to let mortgage with low rental yield are often frustrated, that although their plans make sense, they have spoken to a number of lenders who will simply not consider a mortgage because of the low rent received.

At Rockhopper we understand that every case is different and that no clients are ever the same. That is why we apply a common sense approach to assessing whether we can assist.