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Buy to let mortgages in Northern Ireland

Written By:
Myles Robinson - Expert Finance Advisor

Posted: Aug 12, 2022

Buy to let mortgages in Northern Ireland

It is possible to find it challenging to get a buy-to-let (BTL) mortgage in Northern Ireland. This is especially true if you are not a landlord and have never done this before.

We have assisted many customers in finding the best buy-to-let mortgage for rural properties with nonstandard construction.

Our advisors work on a “whole-of-market” basis. They can guide you through the entire process, even if your credit has been tarnished or you have been denied a mortgage.

After you have read the information, contact us to talk to our mortgage brokers about Northern Ireland buy-to-let mortgages. We have a few mortgage providers lending and offering free mortgage advice. Each mortgage broker is regulated by the financial conduct authority and will provide mortgage advice tailored to you.

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What are the best areas to buy a property in Northern Ireland?

It may be easier to find tenants if you buy property in Northern Ireland to let out. You’ll have a higher demand for rental properties, allowing you to charge higher rent payments.

It is a good idea to calculate the rental yield before purchasing. The rent may not always be more than the purchase price.

The market considers a rental yield of at least 7% reasonable. This indicates that you can profit after paying your mortgage, insurance, and running costs.

How can I calculate my rental yield?

This is done by deciding how much rent you will charge each month. You can find out how much you should charge on property portals like Rightmove or Zoopla. Search for properties in your area to see estimated rental fees.

Once you have the figure, divide it with the market price of your property and multiply it by 100 to get your rental yield percentage.

The following calculation would be used if you wanted to charge £750 per month for rent on a property that is worth £130,000:

Rent (750) and property value (£130,000 = 0.0053

(x 100) = 5.7

Buy a property located in an ‘up-and-coming area’ of Northern Ireland

You may also want to consider the capital appreciation of your property. This term describes how much your property will increase in value over time.

This is risky because it’s impossible to predict how much the property’s value will rise or decrease.

Many landlords purchase property in “up and coming” areas hoping to profit in the future. This is because properties in these areas are often cheaper than elsewhere and thus less expensive to invest in. It may be harder to rent out your property, or you may have to pay a lower rent.

A broker in your region can give you the right advice

Talk to an advisor if you want to know where to invest your money to buy a Northern Ireland property to let.

Although many brokers claim to know the market, they cannot advise accurately about the selling areas and the high demand for rental properties.

Get in touch to arrange to speak with an advisor in your area. They can offer the local knowledge that you need.

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How much deposit do you need to get a Northern Ireland buy-to-let mortgage?

Because these mortgages are considered riskier than standard residential mortgages, buy-to-let mortgages may require a higher down payment.

This is partly because your ability as a landlord to find tenants and ensure that they pay their rent on time and in full are two of your primary responsibilities.

Most buy-to-let mortgage lenders require a minimum of 25% deposit, depending on your financial situation. It can be more expensive if your financial situation is complicated, such as bad credit or a mortgage term that runs into your retirement years.

Can property type affect your deposit size?

Yes, some buildings can be considered ‘non-standard’ properties, such as grade 2 listed buildings with thatched roofs and timber frames. These structures are more challenging to maintain and resell in the case of repossession.

For a buy-to-let mortgage in Northern Ireland, you need to make a deposit.

Talk to a mortgage advisor here to discuss your situation. They can compare current market rates and the terms of each lender.

Is it easier to mortgage a property located in rural Northern Ireland?

Rural properties can have lower demand than properties in urban areas. This can make it more difficult to resell, especially if the lender needs to repossess.

It can also be harder to find tenants to buy to let properties in less-popular areas because there are fewer people. Another risk is that you may not be able to afford your mortgage if there are no tenants.

Rural areas may have fewer lenders, leading to lower interest rates and mortgage terms.

The good news is that lenders are willing to approve mortgages for a rural properties in Northern Ireland if they are in the right situation. We can also help you to find them by working with the buy-to-let brokers.

How can lenders determine your affordability for a Buy-to-Let?

Lenders will ask about your income and age to determine if you can afford your mortgage.

Buy to let lenders typically require that your rental income be 25%-30% more than your mortgage payment. This is so the extra income can be used to maintain your property or for other expenses associated with being a landlord.

For example, a landlord with a £600 mortgage would have to charge his tenants at least £750 per month. This isn’t a scientific method, and lenders have different affordability calculations.

Contact for more information on how lenders calculate your affordability for Northern Ireland to buy a mortgage.

Do I need advice before applying for a BTL Mortgage in Northern Ireland?

This is highly recommended, as only a small number of mortgage lenders will lend to properties in Northern Ireland. Finding the best rates and terms is much more difficult without market advice.

It can be time-saving and cost-saving to seek the advice of a specialist.

We work with hundreds of Northern Ireland buy-to-let mortgage providers. Our brokers will be able to help you find the right one for your needs after speaking to you.

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Are you looking for Northern Ireland buy-to-let mortgage providers? A broker can do all the legwork!

We have several expert Mortgage Advisors who can answer any questions about Northern Ireland’s buy-to-let mortgages.

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