Mortgages can make the expenditure you face on a property more manageable. Although, that’s not to say that everyone will choose to go down this route. For those who are looking for a buy-to-let mortgage, it’s likely that they’ll want to get the best deal. And, luckily for Express.co.uk readers, a mortgage expert from the UK’s first online mortgage broker, Trussle, have been on hand to offer some advice.
It’s important to be open with your broker and mention any credit issues
Dilpreet Bhagrath, mortgage expert at Trussle
Speaking exclusively to Express.co.uk, mortgage expert Dilpreet Bhagrath shared her top tips.
So, when it comes to getting a mortgage, what should you remember?
1. Size mattersA larger deposit could mean you gain access to more competitive mortgage deals, Dilpreet said, adding: “This means you’ll get a wider choice and might secure a better deal.”
So how much should you put in?
Lenders will require a minimum deposit of 5 per cent of the property price, however it may be with putting in 10 per cent or more, if you’re able to.
For a buy-to-let, the deposit will need to be much higher, as lenders would typically ask for a minimum deposit of 25 per cent of the property’s price.
“Lenders will complete a stress test on the monthly rental income to determine how much you can borrow,” Dilpreet said.
“As these rental stress tests have become much stricter, you may find that a 25 per cent deposit is no longer enough to purchase the home.”
Another top tip is to remember is that while most lenders will require a minimum salary of £25,000 for this kind of mortgage, a handful of lenders boast no minimum requirements.
“So, it’s worth doing your research or using a broker to find the right lender and deal for you,” Dilpreet advised.
2. Consider the true costChoosing a mortgage can seem daunting, and Dilpreet pointed out that a common mistake people make is to pick a mortgage without taking into account any associated fees, charges, or incentives - and simply picking the lowest rate on offer.
Mortgage rates: Getting the best rate doesn't necessarily mean picking the cheapest option (Image: GETTY)
“The lowest rate might not necessarily be the cheapest,” she warned, “and our research has shown that homeowners choosing a mortgage with one of the big six lenders (Lloyds Bank, Nationwide Building Society, RBS, Santander, Barclays and HSBC) could be paying up to £900 over the odds over the two-year initial period by choosing the lowest rate, rather than a higher rate with less fees.”
3. Opt for a brokerWith the help of a broker, you’ll be able to compare mortgages from more than 90 lenders, and they could
