Buy-To-Let

Are you looking to purchase a property which you will then rent out to others? We can help you secure a Buy-To-Let mortgage in order to capitalise on this popular and expanding market.

Unlike more traditional property loans, a Buy-To-Let mortgage gives you the option of using your monthly repayments to finance only your interest costs, with the principal paid at the end of the term. Whilst this is beneficial in the short-term as you will have more cash on hand, you must be extremely confident that you will be able to finance the full mortgage capital amount at the end of your repayment schedule. Most people who do this hence seek to either sell or remortgage their property in order to avail of more funds. A fluctuating Irish property market could prove disadvantageous if you were to go down this path, but our qualified Financial Advisors are here to advise you on the best possible option given your situation.

The value of your Buy-To-Let mortgage depends on the rent price you will be charging your tenants. This, in turn, will be dependent on the property itself – its location, size, facilities etc.

Note that maximum LTV amounts for Buy-To-Let mortgages are around 70-75%. This means that you will be required to provide a deposit of 25-30% of your property’s market value upfront. In some cases, the maximum LTV value is 60%.

After securing your deposit, lenders will ask for further evidence of your ability to finance future interest and capital payments. You must give them access to your bank statements and end-of-year income tax returns. The lender will also look into your credit history to determine if you are a reliable borrower.

Note that the interest rates as well as the minimum deposit rates outlined above are higher and more constricting than traditional mortgage loans. This is because lenders see Buy-To-Let agreements as a riskier choice for investors due to market uncertainty and the late payment of the loan’s principal. At MPFS, we will conduct a thorough analysis of your available funds, the current as well as the projected future state of the market and the property’s potential to attract tenants in the long-run. This way, you will be in doubt as to whether or not this is the right investment for you.

MPFS prides itself in providing clients with impartial financial advice which best serves their individual needs and goals.