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London Buy to Let Mortgages

Here’s the key information you need to know about buy to let mortgages in London

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By Pete Mugleston   Mortgage Advisor

Last updated: 25th June 2019 *

Despite the tax changes for landlords in recent years, buying an investment property remains a profitable option. That's why we get many enquiries about buy to let mortgages in London, as those with an interest in property look for different investment options to build their business, savings or pension pot. The expert advisors we work with know how important it is to make sure you get the right product from the different buy to let mortgages that are available for your London property purchase.

In this article we’ll cover:

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Buy to let mortgages in London

As a popular destination for business, students and visitors, demand for rental homes in London tends to be high, all year round. The annual yield on your rental can vary greatly depending on the specific area of London but most may not easily break through the 5% mark. However, capital gains and the longevity of the market are two reasons that many property investors continue to target London property.

At the time of writing, the areas closest to central London such as Westminster and Kensington as well as parts of the east near the M25 such as Romford and Barking are attracting the highest rental yields.

Buying a London buy to let property often requires a mortgage, particularly for new landlords. Because the buy to let investment market remains strong, there are plenty of buy to let mortgage products available for your London purchase.

To ensure you select the best one for your needs, it’s worth speaking to an experienced buy to let mortgage broker with experience of the London property market. Get in touch with Online Mortgage Advisor today and we’ll connect you with an expert advisor.

Buy to let mortgage criteria

There are many similarities between residential mortgages and buy to let mortgages for your London property purchase. However, there are additional, specific criteria for a buy to let mortgage, whether its for a property in London or somewhere else in the UK. They include:

  • A deposit of at least 25% (although the advisors we work with know of lenders who may accept a lower deposit).
  • The ability to prove the rental income will be around 20–30% higher than the mortgage repayments.
  • Some lenders require proof the borrower has suitable finance in place to make up any under occupancy or long void periods.

In addition, while there are plenty of buy to let mortgage products on the market, how many are available depends on your financial circumstances.

Where you have a large deposit, fulfill all of the lender’s criteria and have a good credit record, your buy to let mortgage options could be large. For those who have a smaller deposit or need to borrow a large amount, the number of mortgages available will likely be lower.

If you have the minimum deposit and a less than perfect credit history, there will be only a small number of mortgages open to you. However, with the support of experienced buy to let mortgage advisors we can put you in touch with, you will get the right mortgage advice. Make an enquiry here

How do I choose a buy to let mortgage broker for my London investment?

Choosing the right buy to let mortgage broker for your London property investment isn’t as easy as you might think. If you have any specific requirements it might be worth securing the services of a broker with experience of buy to let mortgages in London with specialist requirements.

Or, if you are set on a specific area of the English capital city, it will likely work out well if you select one of the buy to let mortgage brokers with lots of experience in that part of London.

We can help make your search for the right London-based buy to let mortgage broker much easier. Simply contact Online Mortgage Advisor and we’ll put you in touch with the right advisor for your London BTL mortgage needs.

What are the best buy to let mortgages for London property?

The range of buy to let mortgages for your London investment change on a fairly regular basis. At the time of writing, the number of low interest rate BTL mortgages is falling. However, the number of buy to let mortgage products available for London property purchases remains above the 2,000 mark.

However, the number of buy to let mortgages and associated interest rates does fluctuate. That means it’s rarely easy to know if you’re getting the best buy to let mortgages available in London.

Speaking with one of the experienced BTL advisors we work with is a great way to ensure you’re securing the best buy to let mortgage for your London investment. Make an enquiry here

Can I get a commercial mortgage for London property?

Yes, you can. Commercial mortgages are available for London property that falls into that category. A buy to let can be classed as one type of investment mortgage as it isn’t the residence of the person or business taking it out.

There are also business BTL mortgages, known as commercial investment deals, available in the UK capital, if you know how to find them.

If you need a mortgage for a London-based commercial property, then, just like with residential and buy to let mortgages, there are a number of options. They depend on the type of commercial mortgage you need in London, how it’s being financed, and whole host of other details.

We can put you in touch with a commercial mortgage specialist to help you get the right secured loan for your needs. Furthermore, you can head over to our dedicated commercial mortgages hub for more information about these products.

Commercial property mortgage brokers for London purchases

Due to the often specific details, needs and criteria of making a commercial property investment in London, it's best to speak with mortgage brokers who specialise in this area have access to the products you’re looking for.

The often large size of commercial mortgages required to make a purchase in London, means not all mortgage brokers will have detailed knowledge of this specific area. Because of that, it’s worthwhile speaking with a commercial property mortgage broker with knowledge of London investments, like the ones we work with!

Can I get a mortgage for my business in London?

If you need a mortgage for your business based in London, again, there are a variety of options available to you. Business mortgages for a London investment are typically classed as a type of commercial mortgage. These can be required in the following circumstances:

  • If you need to buy a new building or construct one for your business.
  • You need to a mortgage for refinancing purposes to release equity to expand your business.
  • A mortgage can also be secured for your London business if you wish to expand outside of the city.

Whatever your needs and circumstances, we work with expert commercial mortgage brokers who can offer bespoke advice on business investments and introduce you to the right commercial mortgage lender for a borrower with your profile.

Speak to an expert about London buy to let mortgages

Making a property or business-based investment in London is a big decision and its important to ensure you secure the right mortgage for your needs. If you have questions about a buy to let mortgage for a London property or business investment, and would like to speak to an expert to find out more, call Online Mortgage Advisor today on 0800 304 7880 or make an enquiry here.

You can then let us do all the hard work of finding the perfect advisor with the right experience for your exact needs, while you just sit back and relax. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 25th June 2019
OnlineMortgageAdvisor 2019 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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