Buy to Let Mortgage Advice in Cardiff

During our time working as a dedicated mortgage broker in Cardiff, we have helped many different landlords to secure a mortgage on a property that they are investing in.

Customers may be looking for standard buy to let mortgage advice in Cardiff, for advice on a holiday let in Cardiff, or for a HMO purchase. In any case, our fast & friendly mortgage advice team in Cardiff will be more than happy to take a look at your case, in order to find you the most suitable mortgage deal for your situation.

Residential mortgages are the most common in the buy to let world. This is the standard buy to let, wherein you purchase and take out a mortgage on a standard residential property in Cardiff, allowing tenants to move in and pay you rent, rather than living in it yourself.

The vast majority of borrowers looking to work with a buy to let in Cardiff will sign up for an interest-only mortgage, as this means they will only pay interest each month, allowing for lower monthly costs. This monthly fee is normally covered by the rental amount gathered, though the remaining capital will need to be paid in full by the end of your mortgage term.

A house in multiple occupancy is a term given in reference to properties that are rented out to multiple tenants, typically with shared common areas. Examples you may be familiar with include student housing or house shares. Depending on the size of your HMO property, you may be required to obtain a license from the local council. It is recommended that you speak with the local authority prior to your purchase, so that you are aware of all legalities.

Because HMOs are technically a specialist classification of a buy to let in Cardiff, you’ll find that not all mortgage lenders have products on offer for them. Luckily for anyone looking to work with a HMO, we do have a selection of mortgage lenders who are able to provide mortgages for this type of purchase.

HMOs will generally bring in higher yields than a regular buy to let investment would, though you will have to be wary of other costs, such as license fees from your local authority and more frequent property maintenance.

More and more do we come across landlords making property portfolio purchases using their limited company as an SPV (Special Purpose Vehicle). This is even more so when it comes to landlords who already have such an extensive portfolio to their name.

As a more general rule of thumb for this, purchases through a limited company will result in the owner paying a higher interest rate when taking out a mortgage. There also aren’t as many options for mortgage products with lenders, as there are fewer mortgages on offer for a SPV than a standard residential buy to let purchase.

Conversely to this point, any costs involved can often be greatly outweighed by the potential tax savings you could make. We would always recommend that you speak with an experienced tax advisor prior to this, to make sure it is the best route for you to take in your investment.

Holiday let mortgages work in a way that allows someone to make an investment on a property that will have multiple short tenancies, rather than any long term tenants residing within the property.

A holiday let, much like a HMO purchase, is classed as a specialist type of investment. This once again, means that you will have fewer options with mortgage lenders, as there will be less products on offer. Our mortgage advisors in Cardiff also have lots of experience in helping customers with their holiday let buy to let purchases in Cardiff, so they will be able to look at finding the most suitable deal for your circumstances.

If your situation relates to the above or if you have a different case altogether, please don’t hesitate to book in for a free initial mortgage appointment with one of our mortgage advisors in Cardiff. We will use our experience in the field of buy to let mortgages, in order to help you with your mortgage needs.