Buy To Let Mortgage Southampton

Buy To Let Mortgage Southampton

Everything you need to know about getting a Buy to Let Mortgage Southampton.

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A study by HSBC found that Southampton is one of the best places to buy a rental property in the country. According to the report the average house price in Southampton was £138,311 with an average Rental income of £901 per month. This is a rental yield of 7.8% which is huge in the rental world. Southampton is perfect for not only family rental properties, but also with the University HMO mortgages may be popular. You also have multiple hospitals which often staff want to rent local properties in order to be near work.


At Albion Forest Mortgages we specialise in getting a Buy To Let mortgage in Southampton. We work with lots of local Landlords to ensure they are getting the right deal for their rental properties.


What Is A Buy To Let Mortgage In Southampton?

Buy to Let mortgages in Southampton are the type of mortgage you get for a property you want to rent out. This is usually for business purposes, i.e. to make you money. Southampton has a very good average Rental income compared to house price. 

How Do Buy To Let Mortgages Work

Unlike  Residential mortgages, buy to let mortgages in Southampton don’t rely on your income for the application. When you apply for a Buy to let mortgage in Southampton they will generally work out the affordability based on the rent you will get for the property. You have different options for Rental Property mortgages. Usually you can either have a Rental property in your name, or what is known as a limited company buy to let.

How Much Deposit For A Buy To Let Mortgage In Southampton

Most buy to let mortgages in Southampton would require a deposit of 25% of the purchase price. Sometimes you can get better than that, with 15% or 20% deposit mortgages, but these are less common.

If you are considering buying a buy to let mortgage in Southampton its important to speak to an expert mortgage advisor that can help you get the most out of your rental property. At Albion Forest Mortgages we understand that your new rental property in Southampton is likely a business venture. You are wanting to make an income, so maximising this is our top priority for you.

What Is A Let To Buy Mortgage

Let to Buy is when you want to rent out your current home in order to buy another property for you to live in. This is common when you have been trying to sell your property without much success. Or when you want to get your first buy to let property, but also move at the same time.

A Let to buy can be the perfect way to become a first time landlord. The income may also help toward paying both the let to buy mortgage and your new residential mortgage. However becoming a Landlord should be considered carefully, do you want to be someone’s landlord. Do you want the responsibility of fixing things when they go wrong?

Am I Eligible For A Buy To Let Mortgage

Most people are eligible for a Buy to let Mortgage in Southampton. The main thing lenders prefer is to have another property already. That can be either a Residential property or another Buy to let. This may not always be the case though, some Lenders will lend to first time buyers as well. Some lenders also have a minimum income for the applicants. This is mainly just to ensure that you can afford the mortgage if at any time the property is vacant.

Which Banks Offer Buy To Let Mortgages

Most Banks offer Buy to Let Mortgages, but some specialise in them such as The Mortgage Works, The Mortgage Lender, Paragon Mortgages just to name a few. Just because a lender specialises in them doesn’t make them the best option necessarily. When you’re looking for a Buy to Let Mortgage in Southampton it’s worth speaking to a specialist Mortgage advisor to ensure you get the right mortgage for your situation.

Are Buy To Let Mortgages Cheaper Than Residential

No not really. The amount you pay per month will be less as usually with a Buy To Let Mortgage. This is due to the fact that you only pay the interest not the capital. Usually both the arrangement fees and rates are higher than a residential mortgage.

Often residential mortgages have a fixed arrangement fee or no arrangement fee at all. However with  buy to let interest only mortgage you will likely pay a percentage of the loan as an arrangement fee, if not it will most likely be higher. The Interest rate will also likely be higher than a comparable residential mortgage.

Can You Get An Interest Only Buy To Let Mortgage In Southampton

Yes, absolutely! An Interest only mortgage is the most common type of mortgage for a Buy to Let. For an interest only mortgage you only pay the interest, so you don’t build any capital. However usually property prices increase, this means you build equity in this way if you need it for future plans.


Insurance For Buy To Let Properties In Southampton

Getting the right insurance for your rental properties is key. You probably need Buildings insurance if it’s a Freehold property. You may also want to be covered for malicious or accidental damage by a tenant. Often Landlords also want to have basics like the heating system covered. Getting the right insurance is as much a part of the mortgage as anything else. With years of experience in the home insurance market we are experts in the right Insurance for your rental property.

Got a question we haven’t answered? Maybe we do on our main Mortgages in Southampton page.

Buy to let mortgage southampton
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