13:38 PM, 19th August 2013, About 10 years ago
I have just finished updating all the products on our own in house Buy to Let Mortgage sourcing system and calculator. This takes quite a bit of time, but it is definitely worth it and I wanted share with readers what it can do as it is our own in house design specifically based around the needs of property investors.
The first Key inputs are:
This will then work out if the rental income is enough for every lender and product on the system to agree a Buy to Let mortgage. This is called Stress Testing and is commonly worked out (but not always) by the rent covering the interest only mortgage payment by 125%.
It will also consider the amount you want to borrow against the value of the property as a percentage. This is called Loan to Value and some products or Lenders will vary from 50% LTV to 65%, 75%, some up to 80% and even one still at 85%
Another factor from these figures are the Lenders’ maximum and minimum loan amounts (most lenders will not lend below £25,000) and also minimum property values ( most lenders will not lend on a property below £40,000 and some higher).
Other key inputs are:
Income – many lenders have a minimum income level for applicants although this does not affect the loan amount as it is based on rent.
Preferred rate type Fixed or Variable – Do you want it to search for products where the interest rate will remain the same for the term of the product or are you happy to take the risk of a rate that may change up or down. The system will then only show results for the type you choose (although you can easily change your mind).
You will then get a list of results (see below) which will show:
Then just click on the Get quote Link for the loan requested or the maximum possible loan.
You will then get an full illustration of the product you selected along with a financial summary showing:
And much more see below:
You can find The Buy to Let Mortgage sourcing system and calculator under our Finance tab see below or CLICK HERE to start your search
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