The Buy To Let Market In Bristol

The Buy To Let Market In Bristol

T he buy to let market in Bristol remains buoyant. The city has a largely service based economy with significant employment in the financial, IT, media and aerospace sectors. Multinational corporations like Hewlett Packard, Rolls Royce and British Aerospace are large employers in the city.

Bristol HarboursideDemand for rental property is high, due to strong local population growth and house prices that continue to be out of reach for many first-time buyers.

What Is Buy To Let Property Investment?

A buy to let mortgage is a specific type of mortgage designed for the purchase of a property with the intention of letting it out to tenants. Typically, a property investor will aim to profit in two ways, through rental yield and capital appreciation (ie rising property prices).

There are two measures of rental yield. Gross rental yield is the purchase price of the property divided by the annual rental income. So for example a £150k house (with 25% deposit) earning £750 a month in rent would have a gross yield of 6%.

Net yield is defined as property price divided by rental income after all the associated property costs (letting fees, property maintenance, insurance premiums etc) have been deducted.

iStock_000016270237XSmallBuy to let property investing started to become popular with landlords in the mid-late 1990’s because the yields were so good, thanks to relatively low property prices (at the time) and decent rental incomes.

Obtaining a Buy To Let Mortgage in Bristol

Unlike a standard owner/occupier residential mortgage where the borrowing criteria is based on  affordability, a buy to let mortgage is assessed using RTI, or Rent to Interest Cover calculation. In other words, the borrower must be able to demonstrate rental income will be more than sufficient to cover their mortgage interest payments. You can read more about this in our guide to calculating your earnings on a buy to let property investment in Bristol.

Nowadays a sizeable deposit is required aswell. The typical Loan to Value (LTV) for a buy to let mortgage is currently 75%. However, because Steve Mears are on direct access panels to many of the top BTL lenders, they can sometimes arrange 85% LTV with specialist buy-to-let lenders, though this will depend upon your personal circumstances. Please feel free to contact them for no-obligation advice and the very latest buy-to-let mortgage availability.

They can also help source competitive buy-to-let mortgage rates for a freehold block of flats or apartments (a.k.a Multi-Unit Freehold Block) in Bristol or anywhere else.

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So call today on 0117 325 1130 (lines open 8am-6pm Mon-Fri) or by entering your details in the Request A Call Back form on the right. It only takes a minute. Steve or one of his colleagues will be in touch for a quick chat and to provide you with an absolutely no-obligation mortgage quote.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Our fee for mortgage advice is between 0% and 2% of the loan amount payable on completion.  Typically this will be £495.