Halifax is a trading division of Bank of Scotland. They offer buy to let mortgages to customers throughout the UK who wish to invest in rental property.
Types of Buy to Let mortgage
There are several different popular kinds of buy to let mortgage you can normally take out, depending on your borrowing requirements and personal circumstances.
Interest only buy to let mortgages are best for people who want to keep their monthly repayments low and are happy to pay off the full capital of the mortgage when the loan term ends.
Capital and interest mortgages are intended for borrowers who can afford to pay back a little more each month and want to pay down the capital of the loan over its lifetime.
Fixed rate buy to let mortgages mean you pay a set rate of interest for an initial period, often 2-5 years, before switching to a standard variable rate of interest.
Tracker mortgages keep your interest rate set at a fixed interval about the Bank of England Base Rate (or an equivalent) so your interest rate stays connected to inflation.
Lending criteria for Halifax Buy to Let mortgages
When looking at borrowing on a rental property with Halifax, there are several key points you should bear in mind:
- You should be at least 25 years old
- You must be no older than 75 when your mortgage term ends
- You can borrow up to £2million across a maximum of 3 properties
- The most you can borrow on a single property is £1million
- At least one person named on the loan must own a UK property
If you do not match the lending criteria for Halifax, you may still be able to access the finance you need. This is because different lenders have their own lending conditions, which may be more applicable to your situation. A professional mortgage advisor will be able to help you find the most appropriate forms of buy to let finance for you.
Interest rates on Halifax Buy to Let mortgages
Several different elements of a mortgage deal will affect the kind of interest rate you are offered. The most important tend to be how much you want to borrow, how long for and your loan-to-value (LTV) ratio.
LTV is how much your loan is relative to the market value of your property. So, if you have a property worth £100,000 and want to borrow £60,000 on it, then your LTV would be 60% as the loan is 60% of the value of the property. Lenders will tend to give better interest rates on mortgages with a lower LTV.
Compare Buy to Let mortgage rates
To get the best possible return on your investment with a buy to let property, you need to keep your monthly repayments as low as possible.
Our free mortgage calculator can help you find the best deals on mortgage finance from all the top lenders, giving you access to the most attractive interest rates from across the market.
Independent Buy To Let Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
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Whether it will be a good idea for you to remortgage depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on Halifax & alternative lender options.
