Navigating the Buy to Let mortgage landscape as a landlord can be complex, especially with potential increases in mortgage rates affecting your returns. However, with expert advice from an Appletree Finance adviser, you can find a Buy to Let mortgage right for your situation.

Before engaging with an adviser, it’s beneficial to understand the Interest Cover Ratio (ICR). This measure, required by the Prudential Regulatory Authority, helps ensure your rental income sufficiently covers your mortgage obligations, typically aiming for an ICR of 125%. This ratio is calculated against a ‘stress’ interest rate, which considers a margin above your mortgage payments to safeguard against financial fluctuations.

For landlords in higher tax brackets, lenders might require an ICR as high as 145% due to the increased tax liability.

As inflation rises, your adviser might suggest various strategies to mitigate the impact on your mortgage costs, including extending your mortgage term or increasing borrowing against your portfolio.

In finding the right Buy to Let mortgage, advisers combine their expertise with analytical tools to match your needs with a mortgage product that complies with the lender’s ICR criteria. With their guidance, you can confidently plan your next Buy to Let mortgage strategy.

Please contact us to discuss your options

Your home may be repossessed if you do not keep up repayments on your mortgage.

Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.

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