With lower property values and often lower loan requirements, some landlords believe it’s more difficult to get a buy to let mortgage on property in the North. Fact or fiction? Buy to let mortgage broker Gavin Elley calls it as he sees it.
There’s a scene in Withnail and I when Marwood goes to a local Penrith farmer to ask for supplies and when trying to convince her to give him provisions states; “I’m not from London you know…”
There is no doubt that London and the South East can disproportionately dominate the conversation and shape peoples’ views.
Mortgage lenders are no different and the astute amongst you will have noted that on closer inspection some of those great buy to let rates that we offer seem to disappear once you go north of the Watford Gap or there are minimum loan/property value requirements which precludes properties at the cheaper end of the market. A brief look through our buy to let mortgage sourcing system tells me that the lowest property value a lender will accept is £40k but that’s just for personal borrowers. If you want to borrow using a limited company, then generally you’re looking at £75k, although there are some specialist lenders that will consider less (get in touch if you need more info on this).
But what can be overlooked, from an investment point of view, is that with property values within the sensible range, the rent to interest cover requirements (tougher now thanks to the previous Chancellor – whatever happened to him?) are not usually a problem here.
In the South it is often the case that more cash has to go into a purchase, whereas further north, you can make your cash go further and expect a higher rental yield.
It’s not just about interest rates, it’s about getting the best overall proposition, something that we pride ourselves on here at Wilmslow (just south of Manchester but still in the north).
We can cater for all property types and we do have access to competitive deals. We even understand borrowers who want make buy to let mortgage applications using a limited company and there are rates available for these at sub-4%. So do get in touch on 01625 416398 to talk through the current options.
You may also be interested in:
Stress tests: Why you can borrow more via a Ltd Co
Why are buy to let mortgage stress tests getting tougher
The importance of reviewing your buy to let property portfolio