Buy To Let
At IMA Mortgages and Protection, our knowledgeable advisers excel in handling buy to let mortgages across Hertfordshire, Buckinghamshire, and London. Typically, buy to let mortgage approvals depend on rental income, but most lenders will also expect you to meet a minimum income threshold.
What we can offer you
A buy to let mortgage is a loan for purchasing or refinancing residential property which is let to tenants rather than lived in by the borrower.
Whether you have a vast property portfolio or just one property you let, we can advise you on the mortgage suitable products for your circumstances.
When applying for a buy to let mortgage it’s important that you understand the following:
Interest rates on a buy to let mortgage tend to be higher than for a residential mortgage
You will typically need a larger deposit; usually 25% of the property's value
You will be offered a mortgage based on the rental income, however some lenders will take your personal income into account when assessing affordability
Usually a lender will lend more money if you opt for a 5 year fixed rate
We are experts in the following:
First time landlords
HMOs
Limited Company buy to lets
Non-portfolio landlords
Student lets
Portfolio landlords – people which own more than 3 mortgaged buy to let properties
What are the minimum Energy Efficiency Standard for private rental property?
Current energy efficiency standards mandate that all residential Buy To Let properties must have an Energy Performance Certificate (EPC) rated 'E' or higher. This legislation, enacted in 2018, is applicable to assured tenancy, regulated tenancy, and domestic agricultural tenancy agreements.
Frequently Asked Questions
What is a mortgage?
A mortgage is a loan from a bank or building society that enables you to purchase property. The loan is repaid with interest over a number of years, with the term for doing this dependent on your personal financial circumstances.
A mortgage can be held by an individual or jointly between one or more people, but if you do not keep up your repayments, your home could be repossessed by the lender.
How much can I borrow?
How much you can borrow will depend on your income, outgoings, level of deposit and credit history.
Our team of experienced mortgage advisers will help guide you through this process. With their in-depth knowledge of the mortgage market and understanding of individual lenders criteria, they can identify the most suitable options for your circumstances. Their experience working with a wide range of lenders enables them to present your application in the strongest possible way, helping to make the process smoother, quicker and less stressful for you.
How much deposit do I need?
The minimum deposit is typically 5% of the property price, although 10% or more gives access to better rates. Some schemes and lenders accept smaller deposits in specific circumstances.
What does loan-to-value mean?
Loan-to-value is the ratio of your mortgage to the property’s value, expressed as a percentage. For example a £180,000 mortgage on a £200,000 property is 90% LTV. Lower LTV generally means lower interest rates as the lender's risk is reduced.
What does a mortgage adviser do?
A mortgage adviser helps you find a mortgage that suits your needs and circumstances. They assess your income, outgoings and deposit, explain your options, and recommend a suitable mortgage from the lenders they have access to.
At IMA Mortgages & Protection, we will also handle your application, liaise with the lender and support you through to completion—helping make the process clearer and less stressful, whether you’re buying your first home, moving or remortgaging.
What is an Agreement in Principal, and do I need one?
An Agreement in Principle (AIP) is an indication from a mortgage lender of how much they may be willing to lend you, based on an initial assessment of your circumstances. It isn’t a guaranteed mortgage offer.
You don’t usually need one to start viewing properties, but it can help you understand your budget and show estate agents and sellers that you’re a serious buyer. Some estate agents may ask for one before accepting an offer.
We can help arrange an AIP and explain the next steps.
