The Property Ombudsman

How to finance your buy to let property

Whether you’re a first-time investor or an experienced one, knowing the tips and tricks to financing your buy to let property is always incredibly useful. There are several ways in which you can fund your next property purchase, and we’re here to give you the advice you need, depending on your situation.

Remortgaging a personal property to purchase a buy to let property

Many investors take their first step onto the buy to let ladder by remortgaging their family home and releasing funds to buy a second property. This is a particularly popular option for those who want to kick start their portfolio but don’t necessarily have the funds in the bank to do so. Many experienced investors also choose this route too.  

Refinance an existing (mortgaged) buy to let property to grow your portfolio

If you already have a buy to let property which is mortgaged, dependent on how long ago you made the purchase, there is a high chance that it will have increased in value. This could mean that with the equity now available in your first property, you could re-mortgage and release funds from it to allow you to purchase your next investment property. This method is also known as gearing or leveraging and we have gone into depth on this previously, click here. This is a very popular financing method with property investors who are keen on growing their property portfolio efficiently.

Refinance a property with no mortgage to fund your portfolio

For those who have previously purchased a buy to let property outright with cash, refinancing it and utilising a buy to let mortgage could be hugely beneficial if you’re wanting to grow your property portfolio. With the increased value of your property, refinancing with a 75% LTV mortgage could allow you to purchase more than one buy to let property, therefore doubling or even tripling your monthly rental income and the size of your property portfolio.

It’s worth noting that where mortgages are used to fund a buy to let purchase, this is serviced by the rental income received from the tenant, and will also return a profit once mortgage payments have been met. By investing in property with a buy to let mortgage, you are borrowing money to purchase an income returning asset which increases in value over time.

There are plenty of factors to consider when utilising finance to either start your buy to let journey or increase your property portfolio; this is where an experienced mortgage advisor can help.

Sequre work alongside a fantastic mortgage team who specialise in buy to let. They also have access to products and rates which aren’t available directly to you or available on the high street.  

Whether you’re a first-time investor or an existing one with a small or large property portfolio, our team can provide you with a tailored illustration on what options are best for you. Give us a call today on 0800 011 2277 or contact us here.

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