The demand for buy to let mortgages and consequently, the mortgage lenders who offer them, is on the rise. According to recent figures, approximately one quarter of all property purchases in the UK are for rental purposes.
In this article, we’ll explore the options available to borrowers interested in a buy-to-let mortgage from Bank of Ireland. We’ll go beyond the basics, discussing the qualifications, advantages, types of mortgages you should consider, and more.
What Is Buy-To-Let Mortgage & What Bank of Ireland Can Offer?
Buy-to-let (BTL) mortgages are loans provided to buyers looking to purchase a property and use it for rental purposes. BTL mortgages tend to be more expensive than standard mortgages as they are considered higher risk.
Bank of Ireland, as one of the largest mortgage lenders in Ireland, offers a range of different BTL mortgages designed to meet the needs of different borrowers and investors. These include fixed-rate mortgages, tracker mortgages, offset mortgages, and more.
The bank offers advice and guidance for first-time buyers, landlords, and experienced investors. It also offers a comprehensive range of flexible repayment options, including repayment holidays, capital repayment options, and the ability to Port your mortgage to another property or to another lender.
Criteria To Meet For Approval
To be eligible for a BTL mortgage from Bank of Ireland, prospective borrowers must meet the following criteria:
- You must have a minimum deposit of 20%.
- A minimum income of £37,500 will be required.
- You will need to have a minimum of two years’ rental income from your property.
- You must have no other residential mortgage arrears.
- You must have a good credit history, with no defaults
- Your property must be a good condition.
Mortgages are likely to be approved only if the rent the borrower or investor earns is likely to exceed the monthly mortgage payments by 125%. This is known as the ‘rental cover assessment’.
Advantages Of BTL Mortgage At Bank Of Ireland
BTL mortgages from Bank of Ireland come with a number of advantages. They offer:
- Competitive interest rates.
- Flexible repayment options.
- A wide range of products, from tracker mortgages to fixed-rate mortgages.
- Expert advice and guidance from qualified mortgage advisers.
- The ability to Port your mortgage to another property or another lender.
Types Of Buy To Let Mortgages At Bank Of Ireland
Bank of Ireland offers a range of BTL mortgages to meet the needs of different borrowers and investors. Here are the main types of mortgages available:
- Fixed-Rate Mortgages:These mortgages have an interest rate that is locked in for a period of two to five years. This means that your repayments will remain the same regardless of the Bank of Ireland’s current base rate. Fixed-rate mortgages may also be suitable for landlords who want to hold their property for a long time.
- Tracker Mortgages:These mortgages typically follow the Bank of Ireland’s base rate, plus an additional margin. The rate may change in line with the Bank of Ireland’s rate, meaning your repayments may change. This type of mortgage may suit borrowers who are willing to take a risk in order to benefit from lower interest payments.
- Offset Mortgages:Offset mortgages allow you to reduce the amount of interest you pay on your mortgage by offsetting other savings or investments you have against it. This means that if you have money sitting in a current account or any other type of savings account, it can be used to reduce the amount of interest you pay on your mortgage.
Registration Procedure
When applying for a BTL mortgage from Bank of Ireland, you will need to complete a formal registration process. This involves submitting proof of identity and income, providing proof of address, and supplying all necessary financial information.
Bank of Ireland also requires property surveys before offering financing for buy-to-let properties. This ensures that the property is in good condition and can be let out safely and legally.
Additional Fees and Charges
As with any loan or mortgage, there are associated fees and charges for BTL mortgages from Bank of Ireland. These could include processing fees, stamp duty, and mortgage exit fees.
You may also need to pay for additional services such as property surveys, estate agency fees, and legal fees. It is important to factor these costs into your overall budget when taking out a BTL mortgage.
Steps Before Taking A Loan
Before taking out a BTL mortgage from Bank of Ireland, it is important to do your research. Take time to compare the different BTL mortgage options available from Bank of Ireland and other lenders, and make sure you are completely comfortable with the terms and conditions of the mortgage before you sign any contracts.
It is also important to ensure that the rental property you are purchasing is in good condition and is legally sound. Make sure you take the time to read through all of the terms and conditions of the mortgage before you commit.
Conclusion
Bank of Ireland can be a good option for borrowers looking for a buy-to-let mortgage. They offer a range of options designed to meet different needs and budgets, and competitive interest rates and flexible repayment options.
It is important to do your research and fully understand the terms and conditions of the mortgage before signing any paperwork. It is also important to ensure that the rental property being purchased is in good condition and is legally sound.
