Virgin Money offer buy to let mortgages to help prospective landlords buy their first rental property or allow current landlords to refinance or expand their portfolio.
Types of Buy to Let mortgage
Virgin Money's buy to let finance offers several different options to borrowers allowing them to control how much they repay each month. This can make a big difference to how much of a return you earn on your investment.
Interest only buy to let mortgages mean you only pay the interest due each month. This minimizes your monthly repayments but means you have to pay off the capital when the mortgage ends.
Capital and interest mortgages allow you to pay off some of the capital each month as well as the interest. This means you can pay off all or some of the capital over the lifetime of the loan.
Fixed rate buy to let mortgages mean you pay a set rate of interest for an introductory period (often 2-5 years). After this your interest will move to a standard variable rate. This can allow you to see more of a return or pay off more of the capital at the start of your mortgage.
Tracker mortgages set your interest rates at a fixed interval above the Bank of England Base Rate (or an equivalent). That way your interest rate will stay broadly in line with inflation over time.
Lending criteria for Virgin Money Buy to Let mortgages
NatWest have several standard requirements for people looking to take out a buy to let mortgage with them.
- You must be a UK resident
- You must be aged 18-85
- Not available for first time buyer landlords
- You need a deposit of at least 20%
- Your maximum borrowing cannot exceed £3 million
Other lenders have their own criteria, so even if you do not qualify for a NatWest buy to let mortgage, you may be able to access the finance you need elsewhere. A professional mortgage advisor will be able to help you identify which lenders are most likely to lend to you.
Interest rates on Virgin Money Buy to Let mortgages
Most lenders will want your monthly rental income from a buy to let property to exceed the interest payments on the mortgage. This means you must check how much you are likely to be able to charge before looking at mortgage deals and seeing how much you will be able to afford to borrow.
Mortgage providers will also look at the LTV or loan to value ratio on your mortgage deal when working out what interest rate to offer you.
LTV is the percentage of your property’s market value you wish you take out as a loan, so a £70,000 mortgage on a £100,000 property would equal 70% LTV. In general lenders will offer better interest rates on mortgages with a lower LTV.
How do I get a Virgin Money Buy to Let Mortgage?
Call Virgin Money FREE on 0330 057 1528
Compare Buy to Let mortgage rates
Getting the best possible rate on your buy to let mortgage can help ensure a better return on your investment.
Our calculator lets you see leading deals from top lenders across the industry and compare them to your borrowing needs so you can find the best value for you.
Independent 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.