“A Residential buy to let mortgage is a type of mortgage used to purchase or refinance a rented property which is let to the tenants.”
What makes Esteema Buy-to-Let Mortgage ‘DIFFERENT?
‘Buy-to-Let Mortgage is complex financing expertise, especially when it needs bespoke planning and where the traditional method of financing does not work. Our expertise in real estate’s financing & legal structuring support any financing structure for the special need. We have helped numerous complex matters, where traditional finance cannot be competing with.’
Esteema Capital Partner provides most flexibility proposition with ‘Maximum Leverage & Minimum Costing’
Esteema Specialist Finance | Other Traditional Finance | |
|---|---|---|
| ✓ Any Type | Single Assets / Portfolio / Block / HMO / Mixed | No |
| ✓ Any Purpose | Purchase, Refinance, Re-Structure | No |
| ✓ Any Borrower | UK & International | No |
| ✓ ANY SPV | UK or Offshore | No |
| ✓ Any Location | UK or Globally (Selected location) | No |
| ✓ Multi-Currency | Yes | No |
| ✓ Loan Size | No Upper Limit | Very Restricted |
| Leverage | Up to 80% | Very Restricted |
| Interest Rate | from 1.75% + | From 4%+ onward |
| Any Special Reasons | ✓ Non-Recourse ✓ No maximum age ✓ Unusual Construction ✓ Any Legal Settlements ✓ Probate / Divorce / Inheritance Transfer ✓ Others | UK & International borrower |
Esteema Special Buy-to-Let Pricing
Small
Buy to Let Loan
Less than £5M
Rates from:
3.1% PA
Up-To
80% Loan to Value
Large
Buy to Let loan
More than £5M
Rates from:
2.0% PA
Up-To
65% of Loan to Value
Portfolio / Mixed
Buy to Let Loan
(No upper Limit)
Rates from:
2.0% PA
Up-To
65% Loan to Value
Key Factor Affecting Buy-to-let Finance?
Personal Profile
✓ Personal & Business Profile
✓ Past Experience & Track Record
✓ SPV Structure & Location
Collateral Profile
✓ Assets Types (Residential / HMOs etc)
✓ Location, Sales, Rental Demand
✓ Covenant Type / Terms
Financial
✓ Gross & Net Rental Income
✓ Past Accounts & Forcast
✓ Borrower A&L, Income profile
Buy to Let Finance Guide
Buy to Let Finance Documents
- KYC: ID, Address proof, Personal & Professional History, and credit report for all the Borrower, Director, Partners & Major Shareholders
- SPV: Structure, Directors, Shareholders, UBO, and registered address
- Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
- Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
- Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
- Purpose: Purchase, Refinance, Restructure, Investments, Developments, Business purpose, Refurbishments
Buy to Let Finance FAQs
How Much Can I Borrow?
The overall amount that can be borrowed is entirely based on the achievable rental income or a combination of the rental income & personal disposable income.
All lenders use a ‘stress test’ to assess the suitability of the borrower for a BTL mortgage. The stress test considers the rental income and the ability to pay the interest on the mortgage or the Interest Cover Ratio (ICR) which ranges between 125% to 145%.
How Much Will Be The Interest?
Interest Rates typically begin from 2.5%. This will vary between lenders provisional to the loan amount and the length of the term.
Different lenders will have their own eligibility checks. They will typically check the borrowers:
- Ability to pay the deposit and source of funds
- Income (2 year’s SA302) credit and assets
- Last 3 months’ personal and /or business bank statements as appropriate to verify rental income on remortgage cases
- Proof of ID (certified copy of passport or driving license)
- Proof of residency (utility bill or bank statement)
- Lease copy (AST or commercial lease)
What Sort of Properties can be Purchased or Re-Financed with BTL Mortgages?
- Serviced accommodation and student residences
- Houses in multiple occupations (HMO)
- Freehold properties split into several flats
- Flats near to or above commercial premises such as shops, including fast food and takeaways
- Ex local authority flats
- Holiday let
- AirBNB
How Long Do Applications Take to Complete?
The average turnaround time for the inquiry to completion is 6 – 8 weeks, subject to timely submission of required documents.
Buy to Let Finance Costs
The following costs should be considered at the time of availing the Buy to Let Finance:
- Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan
- Exit Fee: The fee is payable to the lender when repaying the loan
- Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion
- Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project
- Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee
Completion Timeframe
We always aim to bespoke the ‘Financing Time Plan and Finance T & C, to meet the individual requirement. Our standard indicative timeframe :
- Initial Finance Terms: We usually provide Initial Finance Terms within 24-48 hours.
- Emergency Finance: We can complete the finance within 48 hours in case of any emergency or distressing situation.
- Standard Finance: We usually complete Standard Finance within 4-6 weeks.
Notes: Financing time frame & Finance T &C are always subject to providing all satisfactory documentation, full credit underwriting, valuation and legal.
Jargon Buster
Please refer to the Knowledge Bank section for more information
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