Buy to Let Mortgages for Contractors
Buy to let properties are becoming more and more the preferred choice of investment for contractors in the UK. Buy to let market experts are predicting that the next couple of years will be good for BTL landlords. This is mainly due to first time buyers struggling to get onto the property ladder, which means they will be forced to rent. This obviously presents a good opportunity for contractors looking to invest in BTL properties.
Many contractors now view buy to let (BTL) properties as a valuable part of their retirement plans and income opportunities. It’s a great comfort knowing that you’re accumulating rental income at the end of each month without having to do a lot. More importantly, the capital appreciation over the long term can provide better yields than a pension plan.
But it’s not all straightforward. Mortgage lenders are frequently altering their lending criteria and moving the goal post, especially when it comes to the rental calculations for assessing the affordability of a mortgage loan. This is why it is essential to take advice from mortgage specialist.
Key Factors for Contractors to consider when buying an investment property
- You will need a minimum deposit of 25%
- Do the maths – the monthly rental income needs to exceed the mortgage interest payments by a multiple of at least 125%. E.g. if your rent is £1000 per month, the monthly interest payments should not exceed £800.
- Location is key, you need choose the right location with good public transport and shops
- Make sure you have cash set aside to cover maintenance and empty periods
- Select the target tenant – who are they and what do they want?
What represents the best buy to let mortgage for you will depend on your personal situation. Many contractors have a preference to opt for a competitive fixed rate so that they know what their costs will be; for others, the lowest rate is of importance as they want to maximise their rental yield.
Contractor & Freelancer Buy to let Mortgages
- Affordability assessed on your gross contract rate and/or rental assessment
- BTL mortgages for first time landlords
- We arrange Landlord Insurance
- Low arrangement fees, with no hidden charges
- Same day “Agreement in Principle”
- Quick turnaround – mortgage offer in a couple of weeks
- Mortgages of up to £1m
- Access to the whole of BTL mortgage market
- FREE SMS service to keep you updated on your application
At Freelancer Financials we have buy to let specialist who will guide you and help you make the right decision throughout the entire buy to let process. Simply pop your contact details on our call back enquiry form or speak to one of our experts on 020 8421 7999.
Testimonials
"We have been introducing Contractors and Freelancers to Freelancer Financials for several years now. They have established themselves as the preferred choice of financial advisors to all our IT contractors and Freelancers."
Bernie Potton SQ Computer Personnel (largest independent IT Recruitment Agency in the UK)
"John Yerou and his team provided the brokerage service for my last 3 mortgages and I cannot rate them highly enough. No matter how large or small the request they always provide a speedy and professional response. I would never consider using another advisor/broker."
Roz Clifford… Freelancer
"Finding a Financial Advisor who’s professional and knowledgeable is a bonus but one that you trust and feel comfortable with immediately is rarer still. I have recommended John to virtually all the other IT Contractors that I work with and will continue to use their services in the future."
Jakub Baluch... IT Contractor
