Buy
to Let Mortgage Fees
As
with residential mortgages, buy to let mortgages are subject to certain fees.
Here we list the most common buy to let fees payable when arranging a buy to let
mortgage.
Mortgage
Arrangement/Administration Fee - Payable to the buy to let mortgage lender
for the administration of the case. This can be added to the overall buy to let
loan or paid when the buy to let mortgage application is submitted.
Valuation
Fee - Payable to the buy to let mortgage broker, who in turn pay the surveyor
for the final property valuation, which is required by the buy to let mortgage
lender. Please note a copy of this property valuation is normally only sent to
the mortgage lender. The valuation fee must be paid when you submit your buy to
let mortgage application.
Legal
Fees - The mortgage lender will use the same solicitor as the customer (the
practice must consist of two or more partners). All legal fees are payable by
the customer, as and when required by their solicitor.
Some
Buy to Let mortgage lenders will also apply the following fees:
Booking
Fee - A charge for securing a certain Buy to Let mortgage rate, usually only
found on fixed rates. This must be paid on application submission.
Some
mortgage brokers, including Mortgages for Business, will charge a success-only
mortgage broker fee. This charge will be due on the successful receipt of a formal
mortgage offer from the buy to let mortgage lender.
Buy
to Let Mortgage Applications
As
buy to let mortgages are very different to residential mortgages, an independent
mortgage broker such as Mortgages
for Business can help you put together the right details for your buy
to let mortgage application.
Buy
to let mortgages work by applying a rent-to-interest cover calculation, where
the applicant must prove that the rental income will cover the interest on the
buy to let mortgage. Because of this, you'll almost certainly need help when putting
together your buy to let mortgage application.
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