Some landlords save an element of their rental income, whereas others may sell the property or remortgage to pay back the debt.Īdditional stamp duty - If you already own another property - including your own home and other rental properties you'll need to pay a second home surcharge on any additional property. Buy-to-let mortgage rates vary depending on whether you opt for a fixed or variable rate deal and the how risky the lender determines your borrowing (usually based on the LTV, but the type of property can also be a factor).įinal capital repayment - Most buy-to-let mortgages are interest-only, so it's important to consider how you'll repay the capital (amount borrowed) at the end of the term. Monthly repayment - The cost will vary based on the value of your property, how much you borrowed and your interest rate. Mortgage fees - the usual costs of taking out a mortgage, such as the arrangement fee, valuation and legal fees apply - these are often higher for commercial properties. Property type: Not all lenders accept applications for HMO (house of multiple occupancy) properties or mixed use rentals, so you're likely to need a more specialist lender if you plan to venture into anything other than single let property.Ĭredit history: As with other mortgages, the better your score, the greater choice of providers and, therefore, the better rates of interest available to you. Many will want an ARLA registered letting agent to confirm the rental potential. For portfolio landlords it can be up to 145%. Rental income: Borrowing is based on your rental yield and most lenders want the property to bring in at least 125% of the cost of the BTL mortgage repayments. Minimum income: Not all lenders have one, but you may need to earn £25,000 or more to apply for some BTL products.ĭeposit: Lenders usually require at least 25% of the purchase price, with portfolio landlords often being asked for larger deposits of around 40%. Home ownership status: Fewer lenders offer btl mortgages for first-time buyers, but they are available. Maximum age: This can be a little more flexible in the buy-to-let market but some lenders have a maximum age on application and/or by which you should have repaid the loan. By proceeding any further you will be deemed to have read our Terms and Conditions and Privacy Statement.Who is eligible for a buy-to-let mortgage?īuy-to-let (BTL) mortgage criteria are more substantial than for a residential mortgage, and while they vary between lenders they typically include: Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Authorised by the Prudential Regulation Authority and with deemed variation of permission. In the UK, Bank of Ireland is authorised and regulated by the Central Bank of Ireland. Bank of Ireland Group plc, whose shares are listed on the main markets of the Irish Stock Exchange plc and the London Stock Exchange plc, is the holding company of Bank of Ireland.īank of Ireland is regulated by the Central Bank of Ireland. A 1% interest rate rise would increase monthly repayments by €54.02 per month.īank of Ireland Group plc is a public limited company incorporated in Ireland, with its registered office at 40 Mespil Road, Dublin 4 and registered number 593672. APRC includes €150 valuation fee and mortgage charge of €175 paid to the Property Registration Authority. A typical mortgage of €100,000 over 20 years with 240 monthly instalments costs €615.79 per month at 4.2% variable (Annual Percentage Rate of Charge (APRC) 4.3%). Maximum loan is generally 3.5 times gross annual income (4 times gross annual income for first time buyers) and 90% of the property value, (70% of the full property value for Buy to Let) but these limits may vary. You mortgage your property to secure the loan. Mortgage approval is subject to assessment of suitability and affordability. Lending criteria and terms and conditions apply. Principal Dwelling Homes: The lender is Bank of Ireland Mortgages.
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