A secured loan of £25,000 payable over 5 years on a fixed rate of 9.50% would require 60 monthly payments of £546.03. The total amount repayable would be £32,761.80, this includes interest and a product fee of £999. The overall cost for comparison is 11.8% APRC representative.
A consumer buy to let mortgage is similar to a buy to let mortgage, except they are aimed at accidental or non-professional landlords offering greater consumer protection.
The term accidental landlord is commonly used in the lettings sector referring to individuals who didn’t purchase a property with the intention of letting it out, but circumstances led them to become a landlord.
These circumstances in which someone becomes an accidental landlord vary.
For example, someone who currently owns their own residential property but needs to relocate due to work commitments, may not want to sell their main residence, instead they may decide to rent it out rather than leaving the property empty for an extended period of time.
Other lending scenarios include:
Buy to let mortgages are sourced by professional landlords who are looking to purchase rental properties to expand their portfolio.
However, not everyone who becomes a landlord sets out with the intention to do so, which is why consumer buy to let mortgages are available.
A consumer buy to let mortgage has more protection than a regular buy to let mortgage, offering additional security to those accidental landlords, or non-professional landlords who find themselves running a property for income.
It is important to note that there are less lenders offering consumer buy to let mortgages in comparison to a standard buy to let mortgages.
Having a poor credit history doesn’t necessarily mean that you will struggle to obtain a consumer buy let mortgage, however you may find that there is a smaller selection of lenders to choose from.
Although some lenders may not be able to help those with poor credit profiles, we can help individuals with poor credit profiles, including those that have:
Lender rates vary, the rate and term you are offered will be based upon an underwriting assessment of your rental and personal income, credit history and the value of your security.
At Central Trust, we will always ensure that the monthly repayments are affordable before finalising your mortgage.
Applying for a consumer buy to let mortgage is a straightforward process, which can be completed online by following our application process or by calling one of our qualified advisors using the number at the top of this page.
It’s important to remember that your property may be repossessed if you fail to repay your mortgage.