Client Testimonials

Keeley and team really are a pleasure to work with.

We have used Hallowes Mortgages five times now We have engaged their help for both our residential property and also for our buy- to - lets. They are fully equipped to help on both.

At a time of significant change in the market it is reassuring to work with a business which is both thoroughly professional but also has got that real human touch, always keeping us in the picture with great customer service. They take the stress out of the process.Thank you.

Client Nigel W.
Professional family run business with expert knowledge. They will definitely find you the available mortgage on the market that is right for you.

Client Mandy W.
Contacted Hallowes Mortgages about purchasing our first home through a close friend, and the service couldn't of been more friendly, understanding and professional.
Oliver explained every detail, providing reassurance during the whole process, especially the technical jargon. Regular updates of the process, support with any queries and friendly service.
Oliver was very informative, providing us with plenty of options, advice and a great deal to suit our needs. He has smoothly conveyed our details and requirements to solicitors, buildings and contents insurance and health insurance within our short timeline.

The thought

Client Kim M. & Luke E.
Both Keeley and Ben have helped me with getting the right mortgage deals for me, on two occasions. Their advice has been invaluable, taking the stress out of searching for a mortgage.
They deliver a very friendly and personal service, and I have already recommended them to anyone who is looking for a mortgage.

Client Kathryn W.
Great advice good company very knowledgable.

Client James H.
When I came to Hallowes Mortgages in February 2014 for the very first time remortgaging my properties and for further advice and assistance with tenants and renting, I was dealt with by a very professional woman by the name of Keeley Bamford

Because of deafness, receiving information about complex situations can take some time. Every time when having a chat with Keeley, she made it that easy and was very patient and friendly

I was actually very stressed about having to understand new regulations as a landlord, but Keeley’s confidence and professionalism, put me at ease. She helped me understand the written communication and

Client Richard J. S.
We have used Keeley for many years for our property portfolio and can’t recommend her enough. She is extremely friendly and helpful and has made the process far easier than we could ever imagine.
We’ve felt confident in passing Keeley onto many friends and family members looking for mortgage advice knowing full well they’re in safe hands.

Client Simon B. and Faye B.

Buy-to-let

Buy-to-let Mortgages

Buy-to-let (BTL) mortgages are specifically for individuals who wish to buy residential property which they intend renting to tenants. Although a BTL mortgage is similar in a number of respects to a standard residential mortgage, there are some significant differences between the two.

Eligibility and lending criteria

Most banks and building societies (and some other financial institutions) offer BTL mortgages, but terms, conditions and costs vary enormously.

Some mortgage providers will not lend to individuals who are under 25 years of age or earn less than £25,000 a year. Lenders may impose an ‘upper’ age limit on the term of the mortgage by insisting that the mortgage is repaid in full before the borrower reaches a certain age — 70 is not untypical.

Flats, newly built property, former local authority-owned properties — or properties which are priced below a certain value — can be unacceptable to lenders. Lenders may also restrict the number of BTL mortgages a borrower can have with them at any one time. Or the lender may impose a ‘cap’ on the total amount of BTL funding they are prepared to advance to a borrower.

Credit record

In common with a standard residential mortgage, the potential lender will take account of your personal credit rating. If you have any unpaid debts, County Court Judgements — or you have failed to make previous or existing loan repayments on time — the lender may not want to take you on as a BTL borrower.

Affordability

When considering their decision to make an advance or not, lenders will also take into account the amount of rent the borrower is hoping to release from the property. Unlike a standard residential mortgage, most lenders view the property’s rental potential — rather than the borrower’s salary — as the primary source of income for servicing the loan.

For that reason, BTL lenders like to see a situation where the rental income covers at least 125% of the monthly interest payment. In other words, if your monthly mortgage payment is £1,000, the monthly rent should be a minimum of £1,250. (The borrower’s projections in terms of rental income must be verified by an independent source.) The difference between the two figures should help you meet your mortgage repayments when no rent is being received, or when repairs need making to the property.

Deposit

Typically, the highest loan-to-value (LTV) mortgage available on a BTL basis is 85% — i.e. you will need a deposit of at least 15% of the property’s purchase price to proceed. Borrowers who are able to put down substantially more than the minimum 15% deposit (25%+ for example) will usually qualify for more favourable rates of interest.

Interest rate

Because BTL mortgages represent more of a risk for lenders than standard residential mortgages, BTL borrowers tend to be charged higher rates of interest.

BTL mortgages — associated fees and costs

Survey: A surveyor will be appointed (at the borrower’s expense) to assess the property’s condition, market value and potential rental income. The surveyor will also identify any issues which could affect the property’s future value.

Conveyance: Conveyancing — which is usually conducted by a solicitor or conveyancer — is the process by which the ownership (legal title) of the property is transferred from the seller to the buyer. The buyer pays for this cost.

Stamp Duty for Buy-to-let property: The purchaser may have to pay stamp duty land tax which is calculated as a percentage of the purchase price of the property.

Tax treatment depends on individual circumstances and is subject to change.

Other costs: The borrower may also have to pay arrangement and booking fees to the mortgage provider, which tend to be higher than those associated with a standard residential mortgage.

Which type of mortgage?

Depending on the lender, the types of mortgages available to the BTL borrower are usually the same as those available to the standard residential mortgage borrower — i.e., tracker, discount, fixed rate, capped rate and variable rate.

Given that most BTL borrowers buy for reasons of investment, some mortgage options may be more appropriate than others. With a fixed-rate mortgage for example, the borrower knows exactly what their monthly repayments are going to be; other borrowers prefer tracker or variable rate loans where the monthly repayment can sometimes be lower, but the cost can vary from one month to the next.

(Many BTL buyers have a preference for interest only mortgages, as distinct to a capital and interest repayment mortgage. An interest only mortgage, is a mortgage where the monthly repayment is used solely to pay off the interest on the loan but none of the capital, which is repaid only when the property is sold or at the end of the term of the current mortgage when a re-mortgage is obtained.)

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

Some Buy To Let mortgages are not regulated by the Financial Conduct Authority.

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