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Investing in property to earn an income?

Bournemouth Mortgages can help you achieve your goals

A broker explains the application process to a happy customer who wants to know about mortgages in Bournemouth

If you're looking to earn income from purchasing your first investment property, or add to your existing portfolio, you'll need professional advice on  the type of loan that best suits your needs.

 

There are various options available, but knowing which one to apply for to maximise income and minimise risk can be overwhelming. You needn't spend precious time and energy researching the market. We have expert knowledge and access to products, and can guide you on the best fit for your circumstances.

We know how much work is involved in finding your ideal investment property, that's why we take the effort out of financing it. Our customers tell us how much they value our support in making their investment goals a reality. Read our 5 star reviews here.

Call us today so we can start searching the market for the best deals and free up your time to focus on your property plan.

Investment property FAQ's

What are the criteria for taking out a Buy to let​?

Mortgage lenders tend to calculate the amount you can borrow based on the rental amount you expect to receive.

 

Rental income typically needs to be 25–45% higher than your mortgage payment.

 

Most BTL mortgages are interest-only. This means you pay the interest each month, but not the capital amount. At the end of the mortgage term, you repay the original loan in full. BTL mortgages are also available on a repayment basis.

The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%). Interest rates and fees also tend to be higher than residential mortgages.

You may have good or bad credit, there are always options.

First time buyer or experienced landlord?

Typical eligibility:

  • No minimum income required, but if you earn at least £25,000 per year you have more options

  • You don't have to own your own home, but it helps! 

  • No upper age limit

  • 20% deposit

  • Loan amount based on rental income

We also have access to lenders if you wish to purchase a holiday let, House of Multiple Occupation (HMO)

and a multi unit block.​

What is a Bridging Loan?

A bridging loan can be useful if you need to borrow money for a short period. Bridging loans are priced monthly, rather than annually, because they tend to have a 12 month term and can be repaid early. Interest is only due up until the point the loan was repaid, so if you've bought a property to flip, a benefit of a quick flip will mean that you've paid less interest on a bridging loan.

 

If you're buying a new home but haven't found a buyer for your property, a bridging loan could be for you. Bridging loans can also be used  to purchase a property at auction.

Once the bridging loan ends, it's repaid with the sale of the property or by setting up a new mortgage.

One of the downsides of a bridging loan is that they are quite expensive. Some come with no monthly repayment.

What is a Bridge to Let?
 

Bridge to lets can be useful as they offer the ability to get the bridge and mortgage arranged under one 'roof'. You wont have to worry about finding a mortgage once the bridge loan has to be repaid.

The Financial Conduct Authority do not regulate business buy to let mortgages.

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