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Omega Expats & Overseas - UK Buy-to-Let guide

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The buy-to-let market has developed enormously over the last few years and the rates and terms available for UK buy-to-let property in some cases beat UK standard residential mortgage terms. As either an expat or overseas investor, you will have come to realise how difficult it can be to arrange anything to do with banks and building societies in the UK. Omega has many years experience in this area and have helped numerous overseas investors obtain competitive terms for their mortgage / bond requirements. We work with many developers here in the UK and provide a fully comprehensive service including assistance with valuations, solicitors and property lettings.

Types of Mortgage

As with any other mortgages, we can offer varying length terms from 5 years up to 30 years, with the option of either variable or fixed interest rates. The rate of interest varies on fixed or discounted rates dependent on money market fluctuations as well as lenders offers. Should you require details of the current rates please contact Omega using the above contact button. Variable rates will vary between 1% to 1.5% above Bank of England base rate. Most lenders will offer interest-only repayments, as the majority of applicants will want to maximise the loan to value available, with repayments being calculated based on the amount of rental income achievable from the property. Should a capital repayment facility be sought, this can be arranged with many of Omega’s panel lenders. Most people purchasing for investment will opt for a variable rate option as a greater flexibility is available to allow the sale of the property at anytime, whilst a fixed rate option should only be considered by investors who are sure they will keep a property for a minimum length of time. This is because fixed or discounted rate options offered by most lenders will have a hefty “tie-in” period or early settlement penalty applied to the facility.

Availability

Omega is able to arrange Mortgages / Bonds for the following:

• Private individual
• Partnerships
• Limited Companies (On and offshore basis)
• Trusts (On and offshore basis)

Loan to Value Options

Omega has negotiated a number of exclusive packages for their clients. This enables Omega to be able to offer mortgages / bonds up to 85% of value or to a maximum of 90% of purchase price, whichever is the lower.

Fees

As with any transaction, fees are applicable and payable at certain times of the buying process. Below are details of the approximate fees and likely time they will become payable:-

Lenders Fees:

Between 0.5% to 1% of Mortgage/ Bond amount.
Paid at time of acceptance of the loan facility

Omega Fee:

Between 0.5% to 1% Mortgage/ Bond amount.
£250.00 is payable at time of instruction, balance payable upon acceptance of formal loan offer.

Solicitors Fees:

You will also have your and in some instances, the lenders solicitor’s fees.

Lender's Requirements

Most Buy to Let lenders will calculate their maximum advance based on existing or potential rental income achievable from the investment property alone. However in some instances , lenders will require to see a minimum income level for the applicants. (Varies between lenders). In addition, some lenders will offer slightly enhanced lending terms, based more on normal residential terms, but this will require the applicants to produce the following information:-

• Completed Mortgage application form (Some Lenders)
• Asset & Liabilities for each applicant.
• Copies of the last 6 month's pay-slips (if employed).
• Copies of the last 2-3 years certified trading accounts (if self employed)
• Copies of the applicants last 6 months bank statements.

In each and every case the following information is required lenders to progress an application and needs to be certified as true copies by a Notary (NOT POLICE).

• 2 X proof of current address of each applicant Not mobile phone bills (dated within the last 3 months). This can be for either physical or PO Box address.
• 2 X proof of ID's, e.g. valid passport, ID cards or driving licence.

Details of what is required for Omega to obtain terms for you available here >>>

The Financial Services Authority may not regulate Buy-to-Let mortgages.

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