Can I get a buy to let mortgage as a contractor?
Due to the nature of your contractor status you may have overlooked the possibility of a buy to let investment by assuming you wouldn’t be able to obtain a mortgage. In fact the opposite is true as buy to let mortgages are very accessible to contractor’s, and are an excellent investment to bring in extra income or to save towards your retirement.
We base your mortgage affordability on your contract rate alone. Typically, you will need to save a 25% deposit to invest in your buy to let property but our specialists have managed to secure buy to let mortgages with as little as a 15% deposit.
Contractor to landlord in 10 easy steps…
- Secure an agreement in principle – a dedicated adviser will assess your needs and arrange an agreement in principle that you can use when negotiating and offering on a property.
- Find your perfect investment property – this can be both exciting and daunting, knowing how much you can borrow can help narrow your search.
- Make an offer – once you have found your property you can now start to negotiate a purchase price. The maximum size of your buy to let mortgage is calculated using the rental yield of the property, which needs to be 125% of the annual mortgage repayments.
- Contact your adviser to start the mortgage application – once you have agreed a purchase price for the property, you should call or email your adviser and we can kick start the mortgage application. At this stage, your adviser will introduce you to your dedicated mortgage processor who will ensure that your application runs smoothly.
- Your mortgage application “goes live” – in order to process your application you will need to provide various forms of identification. At this stage you will need to instruct a solicitor and your adviser will be able to make recommendations from an approved list, all on a no successful sale, no legal fees basis.
- Searches and building surveys are carried out on the property – various checks such as area searches and land surveys are carried out to protect you and the lender.
- Your mortgage offer will be produced – Once all the lenders searches and surveys have been completed, we will push your lender to issue a formal mortgage offer.
- Your solicitor will request your deposit money and exchange contracts.
- You will agree a completion date – a completion date is agreed with your solicitor and then negotiated with the seller.
- Congratulations, you are now the proud owner of a buy to let property!
Buy to let tax is changing – and soon. From April 2017 landlords will find themselves worse off and needlessly so.
Find out more here by watching our short video. Whether you’re a seasoned property guru, a dinner party landlord or simply interested in investing in property, structuring your buy to let in the right way could save you thousands of pounds each year.
Don’t delay, apply today!
Buy to let property has represented the best investment in the last eighteen years and has outperformed many traditional investments to offer contractors the best returns. Join the thousands of contractors that have already taken the leap to becoming a landlord, our expert team are here to guide you every step of the way.