The Bristol property market has become increasingly appealing for those looking to invest in buy to let properties. The city's strong economy, growing population and high demand for rental properties have contributed to both rental yields and capital growth. Consequently, the need for understanding the buy to let mortgage market in Bristol has become more crucial than ever.
Why Buy to Let in Bristol?
Bristol offers a wide range of property types from traditional Victorian terraced houses to modern apartments, catering to various tenant preferences and budgets. The city's vibrant economy, buoyed by the presence of industries like finance, creative, and technology, and internationally recognised universities, ensures continuous demand for rental properties. This demand, combined with the limited housing supply, can result in higher rental yields and potential capital appreciation in the long-term.
What lenders look for in a Buy to Let mortgage application
When applying for a buy to let mortgage, lenders may require a greater deposit compared to a residential mortgage. Generally, lenders expect a deposit of at least 25% of the property's purchase price for buy to let mortgage applications, although limited mortgage lenders may
consider a 20% deposit.
Additionally, lenders will assess the potential rental income of the property, which should typically cover 125%-145% of the mortgage interest payments, which can also be stressed at a higher interest rate, depending on the product term chosen. The background calculation carried out by the mortgage lender can also depend on whether you own the property in a personal name or a Limited company, so there are many elements to consider.
Lenders may also consider factors such as your credit history, income, and property portfolio size if you already own buy to let properties. It is essential to understand these factors as they can impact the lender that is recommended and which mortgage deal is right for you.
Independent Mortgage Brokers: Helping You Navigate the Buy to Let Mortgage Market
An independent mortgage broker can be invaluable in simplifying the process of finding and securing the most suitable buy to let mortgage deal. Independent brokers, like The Mortgage Company Bristol, have access to a vast network of over 100 mortgage lenders, from prominent high street brands to specialist lenders tailored to niche markets such as buy to let.
By seeking the expert guidance of an independent mortgage broker, you can ensure that you are receiving the tailored advice needed to obtain a mortgage most suited to your specific needs. Furthermore, independent brokers can assist in negotiating the most cost effective terms and interest rates for your scenario, potentially saving you thousands of pounds over your mortgage term.
First-time Buyers and Buy to Let Mortgages
First-time buyers looking to enter the buy to let market in Bristol may face unique challenges due to their lack of prior property ownership. However, with the help of an independent mortgage broker, first-time buyers can access tailored advice on navigating the process and discover lender criteria and mortgage deals specifically designed for their situation. There are some specialist Buy to Let mortgage lenders who may be able to assist if you are a first time landlord depending on your circumstances.
Understanding the buy to let mortgage market in Bristol can be a complex and demanding task. With the invaluable assistance of an independent mortgage broker like The Mortgage Company, this process can be much more streamlined and accessible, whether you are a seasoned landlord or a first-time buyer. Investing the time to understand the Bristol buy to let mortgage market can prove highly rewarding, supporting your financial future in this thriving city.
The guidance and/or information contained within this post is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.
There may be a fee payable for mortgage advice. The precise amount will depend upon your circumstances, and will be discussed with you before proceeding.
Your home may be repossessed if you do not keep up repayments on your mortgage.