Essex Mortgage Advice

Professional Mortgage Advisers in Essex

Phone Number: 07957578754

Buy to Let Mortgage Advisers 
Chelmsford and Essex

Are you looking for Buy to Let Mortgage Advisers in Chelmsford? We Can Help You Find Your Buy to Let Mortgage Today. Find out more about the mortgage options available to you in Essex.

A buy to let mortgage offer landlords the opportunity to create a business in the home rental sector. 

The attraction of purchasing a property as an investment opportunity has been enhanced by a rocky stock market and low returns on savings accounts.

Many landlords have realised an increase in demand from tenants who struggle to afford a deposit on their first home. It means tenants need to remain in the long term in the rental sector.

Buy to Let Mortgage Advisers Chelmsford and Essex

At Essex Mortgage Advice, we offer professional and knowledgeable services in buy to let mortgage customers, something we are hugely proud of.

Please get in touch for more information about buy to let mortgages in Essex. Call 07957578754 today to arrange your initial consultation and let us find you the best deal.


A buy to let mortgage is essentially a loan for refinancing or purchasing a residential property that is later let to tenants instead of the borrower living in it.

Buy to Let Mortgages Chelmsford and Essex - Family moving into a new home

Since this is classed as a business transaction, the fees and rates charged on buy to let mortgages are usually higher in comparison to those associated with a typical standard residential mortgage. A larger deposit usually is needed, as the maximum you can borrow is often 85% loan to the value.

However, there exist lots of competitive rates present at 75% LTV. Buy to let mortgages operate quite differently than residential mortgages, which have the calculations done based on the applicant's financial income and situation. Furthermore, the borrower must prove they can get adequate rental income from the potential tenant to cover the interest on the borrowed amount.

Are you looking for mortgage advice? For mortgage advisers in Essex, contact our expert team today. Please call 07957578754 or complete our contact form with an enquiry.

What is a Buy to Let mortgage?

A buy-to-let mortgage is a type of mortgage that is for people who buy property as an investment rather than a place to live.  If you plan to rent out a new property, most lenders will prefer you not to finance your purchase with a standard residential mortgage.

Buy-to-let mortgages are ideal both for seasoned investors and for new landlords wanting to take their first steps into the property rental market. Not everyone is entitled to take out a buy-to-let mortgage. Our professional team at the Mortgage Clinic can advise you on eligibility.

Buy-to-let mortgages require a deposit of between 25% and 40%. They are more expensive than a typical mortgage.

Most borrowers will take out an interest-only mortgage for the property they have chosen as an investment. The borrower will only pay the interest on the loan as it accrues each month. Generally, this is paid from the proceeds of the rent they collect.

The capital debt or the full amount of the mortgage is then paid at the end of the agreed term. How much you can borrow will depend on your deposit, personal circumstances and rental income. Lenders usually require you to earn more in rent each month than your mortgage repayments.


Why to consider a buy-to-let mortgage?

Buying an investment property to rent out can seem like a brilliant way to save for any future investments and make some money as well. Sometimes this is the case; however, there are also risks involved, and you need to be aware of them.

Why to consider a buy-to-let mortgage?

When you buy a property so you can rent it out, you will need a buy-to-let mortgage. Mortgage providers and lenders usually see buy-to-let mortgages as a much higher risk than a residential mortgage.

The reason for this is that landlords can often face numerous problems with collecting their rent. It is also unlikely that your rental property will be continuously occupied.

These fees can also pay towards all the health and safety checks conducted on your property. These checks are essential to ensure that your property complies with health and safety and is up to living standards.

The typical charges for the continuous management of your investment property can be between 10% to 17% of your monthly rental income. If you require only a one-off letting service, the charge for this is often approximately a months rent. You would need to consider which service is best and most beneficial to you.


Buy-to-Let Insurance

You will most likely need buy-to-let insurance. These policies provide cover for property, landlord liability and its contents.

Tenants should insure any contents belonging to your themselves; it is not your responsibility.

Tenants should ensure any contents belonging to your themselves; it is not your responsibility.

Landlord liability insurance will cover you if any tenants or visitors die or are injured on your property.

As the owner of the rental property, you have the responsibility of building costs or any repairs, not your tenants.

These costs include fixing any problems or breakdowns with the heating or water supply. It is also the same principle for any existing appliances that break down naturally.

You will be surprised just how often the cost of these repairs occurs.  It is advisable to make sure you have put enough money aside to cover these costs and deal with other eventualities.


How much tax do I pay for a buy to let mortgage?

Any rent you receive from your tenants is part of your income, and therefore you have to pay income tax on your earnings.

The level of income tax you would need to pay is dependent on your tax band. It could either be 20%, 40% or 45%.

You are also obliged to pay Capital Gains Tax if you sell any of your assets to make a profit. Assets include your buy-to-let property too, and the rate you pay will be even higher than other assets.


Do I need a Buy-to-let Mortgage If I want to let out the Property I Live in?

If your mortgage lender finds out you've moved out and now have tenants living in your property, they may view this as mortgage fraud, and your lender could even demand that you repay the mortgage immediately, or they will repossess the property.

However, if you do want to let out your home, you may not need to switch to a buy-to-let mortgage. Our highly qualified professional team at The Mortgage Clinic will be able to give you advice on the types of mortgages that are best for you and your investment property.


What are Interest-Only Mortgage?

With an interest-only mortgage, your monthly payment will only pay the interest charges on your loan.

It does not pay off any of the original loans you borrowed. It does mean repayments on your mortgage are less than on a repayment mortgage.

At the end of the term of your mortgage, you will still owe the original amount you borrowed. If you do not keep up with your mortgage repayments, your home may be repossessed.


Are you interested in buy to let mortgages in the Chelmsford or Essex area?

Are you interested in buy to let mortgages in the Chelmsford or Essex area?

At The Mortgage Clinic, we offer independent, professional and knowledgeable services in buy to let mortgage customers, something that makes us incredibly proud. 

Please get in touch for more information, advice or arrange your initial consultation to let us find you the best deal suitable.

Are you looking for buy-to-let mortgage advice in Essex? We offer mortgage advisor services throughout Essex, London and the surrounding areas, including:

  • Southend-on-Sea
  • Colchester
  • Chelmsford
  • Basildon
  • Rayleigh
  • South Benfleet
  • Thundersley
  • Harlow
  • Rochford
  • Grays
  • Brentwood
  • Clacton-on-Sea
  • Braintree
  • Thurrock
  • Castle Point
  • Billericay 

We are regulated by the Financial Conduct Authority.

Call 07957578754 or complete our contact form with your inquiry.

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