RESIDENTIAL AND COMMERCIAL MORTGAGES
Residential Mortgages
It is recommended you seek whole-of-market advice from a professional adviser when you undertake what is probably the largest financial commitment in your life. At The Finance Key we are able to source and recommend a mortgage or remortgage that is tailored to your specific requirements.
Options include:
- First-time buyers or home-movers
- Remortgaging to consolidate other finance
- Capital for a home extension or refurbishments
- Buying a second home
- Mortgages for expats & foreign nationals
Whether you’re trawling through rates on the internet or reading the weekend press, it is often confusing and misleading. Low headline rates aren’t always the most cost-effective mortgage deals available, when the total fees are considered. At The Finance Key, we will source a mortgage for you that best fits your particular circumstances, a recommendation made with integrity.
Buy-to-Let Mortgages
A buy-to-let mortgage is for a property which you intend to let to a tenant. This may be the only buy-to-let property you have, or it may be one of a portfolio you have managed to build.
Generally, lenders will not currently lend above 75% loan to value for this type of mortgage, however this can vary from lender to lender. The loan is usually based on the property’s rental value, in that the rent must be a minimum of 100 to 125% of the monthly mortgage payment. However, due to low rental yields often achieved, some lenders use an applicant’s disposable income to cover any rental shortfall, which can secure the loan required, subject to loan-to-value limits.
It is usually a condition of the mortgage that the property be let on an Assured Shorthold Tenancy Agreement, which protects both the lender and the landlord. Given that you will not reside at a buy-to-let property, it is important to ensure that your buildings and contents insurer is aware that the property will be tenanted.
Some properties are rather more complex than others, and as a consequence may not fit certain lenders’ criteria. For example, a Home for Multiple Occupancy (HMO) property, which has several rooms and often more than one kitchen and bathroom, wouldn’t fit most lenders’ criteria. At The Finance Key we are able to source mortgages for these niche areas as well as the more mainstream.
Let-to-Buy Mortgages
A let-to-buy mortgage is, as it sounds, where someone may look to let their existing property with a view to buying another property. There is certain criteria to fulfil with lenders for this to happen, which is similar to the way buy-to-let mortgages work. This is often an excellent way for someone to move residence if they are unable to sell or do not want to sell their existing residence.
Commercial Mortgages
The The Finance Key are able to source and negotiate exclusive deals on your behalf, with leading banks and lending institutions at hand. Due to the flexible nature of these arrangements, each case is treated on it’s own merit so can be given flexibility and individual consideration.
Commercial mortgages may be used for the following example scenarios:
- Purchase or remortgage of new or existing business premises, be it a shop, office, warehouse, factory, medical practice, public house, restaurant or mixed use building eg. a shop with residential living accommodation attached.
- Purchase or remortgage of Homes For Multiple Occupancy (HMO's) and buy to let property.
- If you own a property that has a low mortgage outstanding or none at all, a remortgage can be an excellent way to raise capital to expand your business.
- Repayment plans can be tailored to suit, with interest only being an option or capital and interest. An initial period of interest only can be arranged as a low start option, reverting to capital and interest after an initial period.
- Finance can be arranged on a variable or fixed rate basis.
It should be noted that some forms of commercial loans are not regulated by the Financial Services Authority.
Details updated: June 20 2010
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