FAQs

Looking to purchase a small shop with flat above, what type of mortgage will we need?

My partner and I wish to buy a small shop with a flat above it - the two are connected via stairs. What sort of mortgage would we need to get for this type of investment? Any property with a commer...
Is it difficult to get a buy-to-let mortgage in the current market? And what rates like at the moment? Can I still get a mortgage with a 25% deposit?

It depends on your individual circumstance, but in general, there are plenty of buy to let mortgage options out there with well over 1,000 products on offer, nearly a quarter of which are available...
How many buy-to-let mortgages can I take out with one lender?

How many buy-to-let mortgages can I take out with one lender? I have one property at the moment and I am considering another. Should I ask my current buy-to-let lender or is it better to spread it...
Do I have to be FCA regulated in order to submit business?

Most brokerages submitting business to MFB are either FCA regulated (either Directly Authorised or as members of a regulated network) or else members of reputable trade body such as NACFB. We may a...
I am concerned that because I have been in arrears I might not be able to get another mortgage.

I am currently going through the courts to get my tenants evicted for non-payment of rent. They owe six months’ rent and now I have gone into arrears with my lender as I can’t afford to cover it. W...
I have 16 buy to lets; am I exempt from the new 3% stamp duty surcharge?

When the original announcement was made in the Autumn Statement by the Chancellor, he proposed that investors with 15+ properties might be exempt from the 3% stamp duty surcharge when making purcha...
I’ve found a property I’d like to buy but it needs work before it can be let out, can I get a buy to let mortgage?

No! Buy to let mortgages are only available on properties that are immediately habitable. If the property requires improvements before it can be let you may have to take out bridging or refurbishme...
Is now a good time to invest in buy-to-let?

I keep reading in the press that the number of tenants looking for properties to rent is increasing. Is now a good time to invest in buy-to-let? Only you can decide if now is a good time for you to...
When are your payment runs?

We have payment runs on the 7th and 21st of each month, so you will never be kept waiting once a case has fully completed.
Are there any lenders willing to take us on, or are we too old?

My husband and I are both in our sixties and we are looking to invest some of our pension pot in a buy-to-let. Are there any lenders willing to take us on, or are we too old? No you are not too old...
What is consent to let?

Consent to let is an agreement between you and your residential mortgage lender, that grants you permission to rent out your home without having to remortgaging onto buy to let finance. Not all len...
Is it advisable to take on a property with existing tenants, and if they prove to be problematic, what rights do we have?

My wife and I are thinking of investing in a buy-to-let but it is already being let out. Is it advisable to take it on with existing tenants, and if they prove to be problematic, what rights do we...
Can we transfer our property portfolio from our joint name into a limited company structure and should we consult our accountant?

My wife and I have 2 buy to let properties and are in process of acquiring another property within a month or so. We have buy to let mortgages on all properties. and they are from the same lender....
My wife and I have nearly paid off our residential mortgage and want to buy a second property for our son to live in, what would be the best way to do this?

My wife and I have £10,000 left to pay on our mortgage and the value of our home is £250,000. Our son is going away to university. We were thinking of buying a second home for him to stay in. Shoul...
What is a RICS HomeBuyer Report?

What is a RICS HomeBuyer Report? A RICS HomeBuyer Report is a type of home survey devised by the Royal Institution of Chartered Surveyors (RICS). It is aimed at homebuyers (hence the name) and inte...
Can I let out my current home in the UK and use the funds to purchase a new home in France?

I’m interested in buying a property abroad - maybe in France. Can I let out my current home in the UK and use the funds to purchase a new home in France? I presume you are asking if you can refinan...
The government cut mortgage tax relief at the beginning of April, but I’m not sure what this means for me?

I first got into buy to let 10 years ago and I’m a little bit worried I might have to sell up because of some of the new regulations. The government cut mortgage tax relief at the beginning of Apri...
I currently have six properties which I rent out but I am thinking of downsizing my portfolio at some point. Could you explain more about the PRA rules and what they mean for landlords?

Yes, you’re right, from October 2017 the PRA requires buy to let lenders to apply a “specialist” underwriting approach when assessing loan applications from portfolio landlords. The PRA defines a...
Is it possible to get a buy to let lender to top up the mortgage to cover the costs of refurbishments on a property?

I’ve been thinking about a buy to let mortgage and I’ve finally found a suitable property. It’s very basic though and I would like to make a number of improvements. Is it possible to get the lender...
With the new tax relief rules announced in the July Budget, should I change my status from an individual to a limited company?

Last year I bought my first buy-to-let property. With the new tax relief rules announced in the July Budget, should I change my status from an individual to a limited company? I have a full time jo...
Do I need to change my mortgage to a buy to let if I plan to let it out whilst working abroad?

I am going to New York to work for at least two years so I intend to let out my property while I am away. I have two questions. Firstly, do I need to change my mortgage to a buy-to-let? Secondly, d...
What are the risks of taking out a 10 year fixed buy to let mortgage?

My buy-to-let mortgage is due for renewal at the end of the year. I have been on a tracker but think that I should move to a fixed rate as Bank of England base rate may go up next year. I have no i...
I am thinking of investing in a house with a friend with a view to letting it out. We are not related so would lenders be willing to lend to us?

Providing you both meet the lending criteria, most buy to let lenders allow up to four applicants on a mortgage. You haven’t said anything about either of your circumstances, so it’s worth bearing...
What is rental yield and interest coverage ratio?

I have been looking into buy-to-let mortgages. I understand lenders want at least 125% rental yield, which I believe means the rent paid by the tenant must be 25% above the mortgage repayment of th...
A property has been bought down in price due to a Japanese knotweed in the garden, can you advise?

I am interested in buying a house that has been brought down in price as it has Japanese knotweed in the garden. I have heard that I might not be able to get a mortgage because of this, although I...
Can you explain what the MCD means for me as a borrower come March 21st 2016?

I bought a buy-to-let flat last year and want to buy another one later this year. I have read that some buy-to-let mortgages will be regulated under the Mortgage Credit Directive from 21 March. Wha...
What is top-slicing?

Top-slicing is where a buy to let lender uses a borrower’s personal income to top up any shortfall in rent which is needed for the borrower to obtain the loan amount they require. See more informat...
What is an unencumbered property?

Unencumbered property is when you own a property outright with no mortgage or loans secured against it. Last updated date: 04/01/2016
What is RTI?

RTI stands for Rent to Interest. Rent to Interest calculations are imposed to ensure that the rental income is more than sufficient to meet the monthly mortgage payment. Last updated: 04/01/2017