- Buy to Let
- To 85% LTV
- Purchase & Remortgage
- Low Rental Yield Considered
- Personal Income Considered
- “Top Slicing” Considered
- Professional Landlords Considered
Low Rental Buy to Let Mortgages
A Buy to Let property with a low rental yield can cause problems when it comes to raising a mortgage or remortgage on the property.
This is typically down to the fact that lenders will want the rental income achieved on the property to by higher than the mortgage payments by varying degrees.
We are, however, approached by clients who may have a property that is not achieving a high rent for a number of reasons such as:Read More >>
- 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.