A Guide to UK Buy to Let Mortgages

Essentially there is little difference between the process that one follows for a buy to let mortgage in the UK than there is for any other type of mortgage. The lender still has to consider your credit worthiness, the value of the property, how much down payment you can afford and all of the other usual considerations. However, in addition, the lender will usually be interested in what the market is for letting properties in the same area as the one that you are thinking of investing in.



The lender will look at property taxes and average rents for similar properties. Other than those particulars, however, the process moves along nearly the same.



A buy to let mortgage can be arranged for either commercial or residential property. Terms can range from between five to forty-five years. There are fixed and variable interest schemes available, and the lender takes an interest in your property just like with any other mortgage so your property is still at risk if you fall into arrears.



One difference is that a lender will consider your potential cash flow from rental income as part of your available money to repay the loan under some circumstances.



Because not all lenders view buy to let mortgages as a risk that they are willing to take, your best route is to choose a mortgage broker who specializes in buy to let schemes. This way you have the best opportunity of getting you application reviewed by the largest number of lenders who are likely to make a decision in your favor.



Since you do not have to pay a fee to engage the broker there is no reason not to take advantage of their services.



Before you buy



You should work with either a commercial or residential real state broker, depending upon the type of property you are looking to invest in, who understands the buy to let market in the area that you are considering. Choose an agent who is bonded and who has a large portfolio of potential properties for you to review.



Have your broker help you choose areas that are compatible with the type of property that you want to buy.



Choose property that matches the needs of the area. For example, you might find it hard to fully let an office building in an area that is used primarily for light manufacturing. Likewise, a warehouse might not go over well if it is surrounded by an office park complex. If you are thinking about purchasing residential property with your buy to let mortgage then make sure that you look in neighborhoods where there are already properties for let. It may be very hard to let a home in a neighborhood populated exclusively by high-income home owners.



Planning your cash needs



You should also determine the maximum that you are willing to spend to buy property. Besides considering the purchase price you will need to determine your available down payment and other expenses such as the services of a solicitor, stamp duty, survey/valuation fees, broker fees etc. You should also consider after-purchase expenses including remodeling to make the building fit for its intended usage, utility deposits and agent's fees if you plan to use a letting agent to attract and vet tenants.



Other expenses are sure to include insurance, routine property maintenance plus ground rents (if applicable) and property taxes. Usually your tenant is responsible for utilities after they move in as well as any Council Tax, TV licence fees, and the like.



Consult with your accountant



In many cases there are tax allowances and deductions which can be taken against rent that you receive. Your usual and customary expenses, including maintenance, insurance, cleaning and landscaping, as well as other recurring expenses likely apply.



While you may not deduct the actual cost of your initial improvements, subsequent repair and replacement of those improvements likely will be deductible. In some cases you can take a flat 10% of the rent as a deduction against normal wear and tear. The tax maze can be very complicated so be sure to let your accountant help you navigate it.



During the buy to let mortgage loan process



If you are using a mortgage broker then you will not have to jump at the first approval that you receive.



The chances are you will be presented with multiple offers. Read each one over and set aside the ones that are so far away from your expectations that even intense negotiations could not make the offer better. Re-read the remaining offers and make a list that details the good and bad points of each one. Send the offers and your list to your solicitor and have him review the contract and your concerns.



Once you are through with that step its time to negotiate. Depending upon the level of service that your broker provides you can either have them handle the negotiations, or you can hire your solicitor, or you can do it yourself.



What can/should be negotiated? Anything from the term of the loan to interest rates, pre-payment or early cancellation fees, payment due dates, lender's fees, fixed and variable interest rates, items of concern found by your solicitor and anything else that doesn't strike your fancy the first time out. There is no risk to attempting to negotiate and you can always be sure that you will NEVER get what you want if you don't ask for it.



Buy to let mortgages used to be very hard to obtain and only people who didn't really need the money were able to get approval.



This is no longer the case. Competitive lenders, especially those lenders who work with buy to let mortgage brokers, realize that the market for residential and commercial property letting is on the rise again. Now is the right time to find a broker and get busy building your investment portfolio of properties.



About the Author



Commercial Lifeline are independent Commercial Mortgage brokers saving you money on your Commercial Mortgage and Bridging Finance through lender choice.



Download our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.



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Overcoming Voice Mail Challenges

If you are in the business of sales, than ultimately, cold calling is part of your weekly, if not daily routine.



Lets face it, cold calling just isn't very exciting, and you need to make many cold calls in order to have success.



During my days working as a loan officer for a mortgage company, I would spend two and a half hours each night, Monday through Friday banging out my cold calls.



My goal was to take at least three applications per evening, resulting in fifteen applications per week, with a goal of turning at least three of the fifteen applications into actual loans.



I faced many challenges during those evenings of cold calling. Such as hang ups, and people saying things such as "I already took care of that," and "take me off of your calling list," etc.



One other challenge I came upon was the answering machine. There was nothing worse than selling to a machine.



But after much rejection from the actual live human beings I was dealing with on a nightly basis, I began to think of the answering machine as my friend.



I would use the answering machine as a tool to have my potential customers get to know me.



I would speak in a friendly upbeat voice, introducing myself and the company I worked for.



But, I would not just leave it at that. I would take the opportunity to describe in brief a product we had available that I believed would meet their needs.



I always kept it short and sweet, not giving the customer an opportunity to delete me because my message was long and drawn out.



Leaving your name and number simply is not enough to entice a customer to call you back, especially when cold calling.



So dangle a carrot in the way of one of your products and there will be a good chance your customer will call you back.

Mortgage vs. Real Estate Lead Generation

It is fairly common for real estate companies and mortgage brokers to use leads. There is a difference between mortgage lead generation and real estate generation. Mortgage lead generation deals with people who need to refinance their homes or apply for loans, while real estate lead generation is a service that connects potential buyers with real estate agents.

Mortgage leads are generated in a number of different ways. One way to create the leads is for the lender, that is the mortgage broker, to appear in a paper or online directory.



This lets potential customers make the first contact. The lenders give information about themselves, like the interest rates they charge and types of lending programs they offer, along with their contact information. This allows potential borrowers to search out the lender that is best for them.

Real Estate lead generation is somewhat different. It involves connecting prospective buyers to real estate agents. It is usually a good idea to use a real estate lead generation service that uses only inbound leads, meaning that the buyer contacts the lead generator looking for a real estate agent.



This way, the lead generator can get the most information possible from the buyer in order to find the most appropriate real estate agent. Many lead generation services use tricks to lure prospective buyers.

Mortgage lead generation helps lenders and borrowers find each other. This service benefits everyone involved. Some of the most successful businesses on the Internet are lead generation agencies.

Lead Generation Info provides detailed information about sales, mortage, MLM, business-to-business, internet, and insurance lead generation, lead generation telemarketing, and more.



Lead Generation Info is the sister site of MLM Leads Web.

Balloon Mortgages Explained

Aballoon mortgage is a accommodation that is provided for a abbreviate aeon of time for a set bulk of money. Airship mortgages will generally absorb alternate payments that are fabricated at a anchored absorption rate. During this period, the accommodation may not be amortized. The antithesis of the accommodation has to be paid in abounding at a specific time.



Another affection of airship mortgages is that they will amalgamate abounding of the appearance apparent in adjustable amount mortgages and anchored mortgages.



The absorption amount will abide anchored for a assertive aeon of time, which may be from 5 to 7 years. The payments will be based on an acquittal aeon that lasts 30 years. If homeowners can't pay the antithesis by the end of the term, the lender will adjudge how the payments will be made. The sum is usually adapted into a anchored amount mortgage.



Advantages?



A airship mortgage can be acceptable because it offers an absorption amount that is abundant lower than accepted 30-year mortgages.



If you are affairs a beyond home, a airship mortgage can advice you. Beyond homes tend to accept absorption ante that are high, and this can accomplish them difficult to pay off if you don't accept a ample income. Airship mortgages can accomplish things easier. They are aswell acceptable for humans who plan on refinancing the home afore the appellation ends.



Despite this, airship mortgages can be abundant added circuitous than accepted mortgages.



Some homeowners who use them end up active into problems. You will charge to accomplish abiding you accept solid abstracts afore signing up for a airship mortgage. You will wish to accomplish abiding you accept the appropriate lender and apprehend all affairs anxiously for hidden fees or added terms. Airship mortgages can be chancy for humans who don't accept them.



Extra Charges For Airship Mortgages



One botheration that barter run into with these mortgages is accommodation penalties.



These penalties will generally be placed on humans who accept to pay off the mortgage early. If you refinance your absolute mortgage or advertise the home, this can advance to accommodation penalties. The botheration with these penalties is that they abundantly access the affairs that your home could become foreclosed. Mortgages that accept airship payments are awful affected to foreclosure.



Pre Payment Penalties



The amount of accommodation penalties can be large.



They are usually affected as a allotment of the absolute antithesis owed. This could be as top as 12% and abounding homeowners accept begin themselves paying bags of dollars added than they expected. If you accept to get a airship mortgage you should accomplish abiding there are no accommodation penalties. If you get into a bearings area you can't allow the home, accommodation penalties can accumulate you from accepting able to refinance the home in adjustment to get out of debt.



These mortgages can be risky, and should alone be acclimated by those who absolutely accept the risks involved.



Short Appellation Mortgage - Long Appellation Problems



A mortgage is a austere banking endeavor that you should yield seriously. They absorb ample amounts of money that a lot of humans artlessly don't accept on hand. If you get into a bearings area you can't accomplish your payments, you could end up accident your home and your acclaim could be ruined.



Abounding humans accept fabricated the aberration of accepting complex with airship mortgage afterwards accomplishing their research. They chose not to apprehend the accomplished book on the applications. They generally end up in situations that can abode them for the blow of their lives.



While airship mortgages may accept low absorption ante at first, you should accept a plan to accomplish your account payments afterwards the aboriginal appellation ends. This can accumulate you from behind on your payments.

Becoming A Commercial Mortgage Broker

Given that buying, selling and investing in real estate involve complex transactions and high financial considerations, buyers, lenders and investors usually ask the help of real estate agents and real estate brokers. They do so because real estate brokers and agents possess a thorough knowledge of the real estate market. Given this, more and more people are becoming interested in becoming agents or brokers. However, not anyone can become an agent or a broker unless he or she undergoes the necessary training and licensing procedures.



Becoming a brokerTo become a commercial mortgage broker, individuals or brokerage owners need to get accredited by the government by getting a license after they have passed a state exam. This license will enable the brokers to own their own real estate or property management office, and to specialize in commercial real estate, or become a franchisee for a national or international brokerage firm. However, before taking the exam, brokers need to undergo education and training that would equip them with the knowledge and skills they would need to practice their profession.



There are a number of firms and schools that offer this training, and recently, the Internet has also become an alternative source of online courses that can help brokers get their license. Majority of the courses offered by schools and the Internet cover topics on Property Ownership, Contracts, Agency, Real Estate Contracts, Titles, Leases, Taxes, Appraisal Construction, Escrow Real Estate Law, Real Estate Math, and other required topics that different states may require.License RenewalThe license that brokers get needs to be renewed regularly, which is usually every one or two years depending on the regulations of a state.



Most of the time, the schools that offer classes for brokers also help their students in applying for licenses and having them renewed, which also goes for online schools.To fill in the demand for competent skills from brokers, an accreditation process has been put in place to ensure that brokers receive the appropriate training that they need to practice their profession. This process involves undergoing training and passing state exams to get a broker's license. Given this, buyers, lenders and investors can be assured that they will get competent and appropriate assistance with their commercial real estate transactions.



Commercial Mortgage Brokers provides detailed information on Commercial Mortgage Brokers, Becoming A Commercial Mortgage Broker, Commercial Mortgage Brokers Online, Finding A Commercial Mortgage Broker and more. Commercial Mortgage Brokers is affiliated with Commercial Mortgage Lenders.

Mortgage Insurance Protects Bank Forced Repossess Your House Loss

The coverage usually is supplemental to a Mortgagee's Title Insurance policy, and the premium is customarily paid by the buyer. As with most other types of insurance, you pay a monthly premium on top of your monthly mortgage payment for this policy. A mortgage insurance policy protects the bank in the event they are forced to repossess your house and sell it at a loss. Private mortgage insurance is an insurance policy designed to protect the lender in case you do not pay back your mortgage loan.



A one-year paid receipt for homeowner's insurance policy for at least the amount of the mortgage is required at the loan closing. As soon as the sum insured is paid out the mortgage life insurance policy ceases. A mortgage insurance premium is a policy that insures the lender against loss if the homeowner defaults on a mortgage. top Insurance Fees Your policy of homeowner's or hazard insurance will need to be current at the time the new mortgage closes.



Compare the cost of a term life insurance policy to a mortgage insurance policy. It is often less expensive to purchase a term life insurance policy to function as a mortgage protection life insurance policy. The idea behind mortgage protection insurance is straightforward: You pay a premium, which remains the same for the duration of the policy. You have a separate policy for the mortgage and other policies for other life insurance needs.



An individual mortgage insurance policy, obtained directly from an insurer, puts you in control of your own coverage. If a borrower stops paying on a mortgage, the insurance company ensures that the lender will be paid in full. Disposable Income A term referring to all income remaining after all necessary expenses are paid, such as mortgage, car payment, insurance, etc. Private mortgage insurance can help out enormously, especially after you have already paid your closing costs and your down payment.



The refunds will involve premiums that were paid for unnecessary mortgage insurance over the last three years, although aides to Mr. It also does not allow you the option of retaining the insurance coverage past the point in time that the mortgage is paid off. Most mortgage insurance premiums are paid monthly as add-ons to the principal, interest, insurance and tax escrows. Your insurance terminates when your mortgage is paid off or transferred to another party.



Private mortgage insurance can be paid on either an annual, monthly or single premium plan. Homeowner's InsuranceExperts say that even if a mortgage is paid off, homeowner's insurance is still a good buy. Lenders are paid in advance for how is difficult to 80 of borrowers, who put down on mortgage insurance preamble. Once your loan balance is paid down to less than 75% or 80% of property value, you can cancel your mortgage insurance.



The mortgage loan insurance premium may be paid in cash or added to your mortgage. With mortgage insurance, the borrower pays the premiums, but the lender is the beneficiary. A mortgage insurance apart from providing security against losses to the lender also helps in reducing the down payment. Mortgage insurance coverage on low-down-payment loans protects a lender against losses due to homeowner default, says the company in a news release.



With PMI, the borrower pays a premium to a mortgage insurance company selected by the lender. When you have private mortgage insurance you are essentially protecting the lender from any bad deeds on your part. Don't throw away your money, ask your lender for the details about private mortgage insurance and your mortgage. You can ask the lender to cancel your private mortgage insurance once you get to the 20-22 percent equity mark.



Much of the available jobloss mortgage insurance is available at no cost from the lender as part of a loan package or program. All dealings concerning mortgage insurance are usually handled by the lender. Private mortgage insurance helps to protect the lender if the borrower cannot repay the loan. Private mortgage insurance (PMI) is a form of insurance that protects the lender against loss in the event the borrower defaults on the mortgage.



In effect, the mortgage insurance company shares the risk of foreclosure with the lender. Private mortgage insurance is insurance that protects a lender in the event that a homeowner defaults on a loan. http://www.insurance-health-quote.com/mortgage-insurance/

Process And Eligibility To Secure A Home Mortgage Loan

Securing a home mortgage loan can be tough unless you know the basics. This article adequately expounds everything from tips to documentation. Read up for more information.A home mortgage loan is one of the most common and popular ways through which people buy property. Most properties in the Unites States are bought with the help of a loan and the industry is in itself worth billions of dollars. However, there are several steps before one can actually be approved for a home mortgage loan.



But let's start from understanding the concept it self.Home mortgage loanThe concept of a home mortgage loan itself is generally quite simple. The property in question remains as the mortgage or the collateral, for the loan being issued. This is usually issued by a financial institute to the person who is buying the property. The original amount of loan remains the principal sum with an annual interest rate imposed on this sum. Should the new property owner be unable to pay the loan, the lending institute seizes the property which then will be foreclosed.



Home mortgage loan are usually paid in instalments every month.Key elementsIf you are planning to buy a home or any property through a home mortgage loan, it is advised you work on your credit score long before you actually plan to make the big move. Your credit history is like a research paper on your personal finances and to any lender it speaks volumes about how well you manage your finances and how good you are at clearing your dues. It is usually very difficult to get approved for a home mortgage loan if you have a bad and sometimes even average, credit score.



Also consider the fact that things could be somewhat easier if you are able to make a down payment on your property. Larger the payment, better it is.Financial realizationBefore you even begin to apply for a home mortgage loan, you must do some work on your own to get an idea of what your chances are in being approved that loan. Naturally, the first and most important element of the process is realizing your personal or household's finances. Calculate how much money you are left with every month after you deduct all the fundamental expenses.



This is important because it gives you an understanding of how much money you are left with at the end of month which in turn determines how much mortgage you can pay monthly. Don't forget to anticipate the interest rates.Documentation to secure a home mortgage loanWhen you think you're ready to go for it, make a check list of documents you will need for your home mortgage loan application process. If you are employed, you will need your W-2 form and pay stubs and if you are self employed then you would generally need to show your tax statements of about two years.



Private business owners need to show a balance sheet depicting the revenue and loss you have incurred. Retirees need to have either a two- month long bank statement or the 1099 form. The social security award letter along with copies of all documents related to your pension checks is required too. Then of course there are other basic documents you will need pertaining to your bank and credit card accounts, existing loans and also on the present landlord and investments if applicable. These are the basic documentation required to be eligible for most home mortgage loan.