Buy to let Archives - First 4 Commercial

Small Bridging Loans to Prepare a Second Home for Tenants

If you own a second home you might be interested in renting it out to tenants on either a short-term or long-term basis. Owning a number of properties provides you with the flexibility to have an extra income flow to add to your finances, but you will have to make the second property ready for your prospective tenants to move into.

There are a number of reasons why you would benefit form acquiring a small bridging loan to help you get your second home ready and liveable.

Furnished or Unfurnished – You always have options as a landlord and it is up to you whether you want to fully furnish your property for tenants, or leave it unfurnished. The decision will impact your rental yield potential, but either way you will often find that the majority of rental properties have white goods present and you will also have to ensure everything is fully decorated and up to scratch in terms of health and safety standards.

Clean and Tidy – Once the framework of the property has been concluded the landlord is responsible for brushing up the property so that it is ready to view. Providing the property with a deep clean and ensuring that the exterior, as well as the interior, is clean and tidy will make it more enticing to prospective tenants.

Maintenance Issues – Once you have tenants in place it is your responsibility to take care of regular maintenance issues and be at hand to fix any problems that take place. Insurance will cover you in the most extreme cases, but you might require a small bridging loan to take care of a problem immediately, whilst you are waiting for a payment to be sent through.

Speak to our experienced team at First4Commercial about a bridging loan that will help you perfectly prepare your second home for prospective tenants, whether on a short-term or long-term basis. There are a few factors to consider and you always have options, but a small bridging loan will help you prepare your second home to be lived in.


Reasons to Invest in Buy-To-Let Property

As demand for rental property has almost doubled since 2010, with a growing population and fewer people of younger generations applying for mortgages than in the past, owners of buy-to-let property are in a great position to reap the rewards.

There are a number of reasons why you should be looking to invest in buy-to-let property. These include:

Economic Stability – Having a buy-to-let property as part of your portfolio allows you to see long-term financial rewards aside from the property you actually live in.

Rising Rental Yields – Not only will you cover the mortgage payments and have the value rise on your rental property, rental yields continue to rise, meaning you’re getting more back from your investment over time.

Growing Renting Population – The percentage of people looking to rent, rather to buy, a home continues to rise as population numbers do. The demand is high for good quality rental accommodation, ensure you’re there to capitalise.

Whatever your reason behind investing in buy-to-let property, be sure to speak to professional advisors about a specific buy-to-let mortgage for the property in question. They will be able to explain everything in depth about the process of purchasing, as well as the type of rental yields you can expect to experience.

If you would like advice on financial assistance in order to invest in buy-to-let property and rent it out to tenants, give First4Commercial a call today. Our experts understand the rental landscape and are here to help you make the right choices with your money.


An award winning year for in 2015

We are looking forward to continuing our success from last year into 2016 and beyond. As usual we helped hundreds of clients with their mortgage and finance needs in the Commercial, Buy to Let and Bridging Loan sectors. Using our expertise and industry knowledge to provide the best rates, and advice to our clients and introducers.

We received three industry awards throughout 2015:

  • Most Outstanding Independent Commercial Finance Specialist – Corporate Livewire Awards
  • Best Commercial Finance Broker 2015 – UK – Acquisition International Awards
  • Best Independent Commercial Mortgage Brokers 2015 – Real Estate & Property Awards

We are very proud to be recognised for the hard work and dedication we provide to every client. With our FREE no-obligation quotations and our bridging loan lender panel in excess of 70+ lenders, we will continue to provide the best advice and market leading rates throughout 2016.

We wish all our clients, introducers and lenders a happy a prosperous 2016 and look forward to continuing where we left off.

If you have any queries or cases you wish to discuss please call the team on 01277 620083.


A Quick Guide To A Buy To Let Mortgage.

1. What is a buy-to-let mortgage?
A buy to let mortgage has been designed for someone who is purchasing a property to rent out to someone else. The person buying that property will not be living there.
2. Is it hard to get a buy to let mortgage?
Many lenders require a 25% deposit of the value of the property, so they are harder to get than in recent years although there are plenty of mortgages available for this purpose.
3. What rent will you need to charge to?
You will need to determine how much rent you will be charging for the property and if this is enough to cover the mortgage on it. You must make sure that your expected rent is realistic and fits within the area you are buying before applying for a loan.
4. How much will I be charged?
Interest rates are higher on a buy to let mortgage than a standard mortgage. As well as arrangement and booking fees. So check these all out with your provider or broker before you begin the process of application.
5. Do I need a specialist broker?
Although there are several high street lenders that offer buy to let mortgages, a specialist broker will be able to offer specific advice and will have access to a greater variety of lenders. This could mean that you will get a better deal and one more suited to you by going down this route of extra expert help.


Refurbish-to-Let: The New Trend Amongst HMO Landlords

As buy-to-let mortgage rates are decreasing, more and more landlords are rapidly expanding their portfolios and are venturing into the HMO, or ‘house in multiple occupation’ market. Recent reports suggest that gross yields for HMO properties have, for the first time, exceeded the 10 percent mark, and HMOs are now becoming a hot topic.

However, bigger properties typically mean higher costs, and savvy landlords are beginning to show a trend for moving away from the traditional buy-to-let scenario, and are instead focusing on refurbish-to-let – the act of purchasing HMO-ready properties (or properties that can be transformed into HMO homes) which are in need of renovations for low cost, and refurbishing to yield a greater rental value.

Securing the Right Financial Deal

A common challenge faced by refurbish-to-let landlords, however, is that it can be difficult to secure a standard buy-to-let mortgage for a rundown property – lenders want to know that they’re going to see returns. While some specialist lenders do have dedicated financial products in place to cover these scenarios, interest rates have typically deterred landlords from exploring the opportunities any further.

The good news for HMO landlords, and for buy-to-let landlords looking to expand their portfolio, is that many banks seem to be open to the idea of working with HMO landlords. Recently, a major high street bank confirmed that they were ‘considering introducing a hybrid loan’ that would combine a buy-to-let mortgage with another financial product that would offer landlords greater flexibility in terms of the properties they purchase.



Top Three Considerations When Purchasing A Buy-To-Let

Are you already mentally listing the three as:

  • Do I like the house
  • Will it make me money
  • Can we afford to buy it?

Those are not the three considerations we’re covering here. We’re diving deeper to look get an alternative angle on your buy-to-let decision-making process.

Stick to your Neighbourhood or go Further Afield?

Although it may feel comforting to be just around the corner from your investment property, buying a house near to home may not be the wisest investment decision. Choosing to buy in another area of the country helps spread your investment risk. If you buy in the same neighbourhood, both your properties will be subject to the same price fluctuations, whereas spreading across two locations could stabilize the overall net value of your properties.

Keep in mind though that your costs will increase as you will no longer be on hand to complete any odd-jobs.

2) Be Clear About your Target Customer

Think about the combination of property and customer that you will be most happy with. When you are choosing the area and the type of property, it’s really important to keep in mind, who will be living there. For example, you may find a cheap little flat in a street near a school and a park. There’s a mismatch there between the type of tenants the property attracts and the type of tenants who want to live in that area.

3) Factor in all Costs

When calculating whether it makes sense to buy a particular property remember to factor in all the costs. This includes not only fees but also ongoing maintenance costs and losses incurred when the property isn’t occupied.

Getting finance in place quickly can help you negotiate a better purchase price.


Is Buy To Let The Right Investment Vehicle For You?

The logic seems sound. Buy a second house, rent it out, use the payments to repay the mortgage, and in 25 years time you will own a second property outright.

But is a buy-to-let investment really that straightforward, and how can you tell if it’s the right investment for you?

BTL Is Ideal For…

If you like to be able to see what your money is buying and you feel wary of investing in stocks and shares, then a buy-to-let property investment makes sense. And by using a buy-to-let mortgage you can invest money now, that you haven’t earned yet. Whereas traditional savings and investment schemes require you to pay in money you already have, a BTL mortgage lets you borrow the money, invest it, then pay it back over time.

But Beware…

Of course, as with any investment, you need to be aware of the risks and costs. House prices (like stock value) can go down as well as up. Plus there will be ongoing costs associated with agency fees and property maintenance. You will also need a savings cushion or form of financial protection to cover any periods when the property is vacant.

Patience Is Essential

The most important attribute needed in a BTL investor is patience. Don’t pounce on the first property that catches your eye. Patiently search the market for the property that offers the best return. And be aware that once you’ve made your investment, releasing your money is a time-consuming and costly affair. To profit from this arrangement you need to take a long term view.



New Buy to Let lender added to panel

We are able to strengthen our lender panel even further today with the addition of a new Buy to Let lender who specialise in Limited Company Buy to Lets and also Houses in Multiple Occupation (HMO’s).

A competitive product range, including fixed and tracker rates as well as lending up to 80% LTV. This is a very strong addition to our already extensive lending panel.

Highlights of their criteria include:

  • Purchase or re-mortgage
  • Limited Companies
  • Individuals
  • HMO properties
  • Student lets
  • Portfolio landlords
  • Up to 80% LTV on standard BTL’s, 75% on HMO’s – fees can be added to the loan.
  • Rental income is assessed at 125% of the initial rate, nominal rate (5%) or revert rate whichever is higher
  • Min income £25k

Feel free to contact the team for further information on your new Buy to Let mortgage enquiry.


T: 01277 620083 F: 01277 658900 E:

A: 5 Alyssum Walk, Billericay Essex CM12 0SS

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