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Investing in buy-to-let property in Sunderland can be a great way to generate rental income, but understanding the costs involved is key to making informed decisions.
The expenses linked to a buy-to-let mortgage can vary, so being aware of them before committing to a purchase is essential.
The deposit is one of the biggest upfront costs when securing a buy-to-let mortgage in Sunderland.
Unlike residential mortgages, which can require as little as a 5% deposit, buy-to-let mortgages typically require between 20% and 40% of the property’s value.
A larger deposit often results in access to more competitive mortgage rates and lower monthly repayments.
Older investors, including those looking for a buy-to-let mortgage at 60 or over, may find that some lenders have stricter criteria, but there are still plenty of options available.
Interest rates on buy-to-let mortgages in Sunderland tend to be higher than those on standard residential mortgages, as lenders view rental properties as a higher-risk investment.
Landlords can choose between repayment and interest-only mortgages, each with its own financial benefits.
Regularly reviewing your mortgage terms and exploring buy-to-let remortgages in Sunderland can help ensure you’re on a competitive deal.
For those with multiple rental properties, portfolio landlord mortgages may offer a more structured way to manage repayments.
Many lenders charge arrangement fees, which can either be a flat rate or a percentage of the loan amount.
These can add a significant cost to the mortgage, particularly on higher-value properties.
For more complex cases, such as HMO mortgages (House in Multiple Occupation) or holiday let mortgages, working with a specialist mortgage broker can be beneficial.
While brokers charge fees for their services, they often have access to exclusive products that aren’t available directly from lenders.
When buying a rental property, legal costs are an important factor to consider. Conveyancing fees, property searches, and other administrative expenses can add up.
For landlords purchasing auction properties in Sunderland, the legal process can be more complex, with strict deadlines to meet.
Having a professional to guide you through the process can make securing your investment much smoother.
The costs of a buy-to-let mortgage in Sunderland go beyond the initial purchase.
Landlords are typically required to have buildings insurance, and landlord-specific policies may be needed to cover additional risks, such as tenant disputes or property damage.
Maintenance and repairs should also be budgeted for, as keeping the property in good condition is essential for attracting tenants and maintaining rental income.
Owning a buy-to-let in Sunderland also comes with tax obligations. Landlords may need to pay tax on rental income, as well as other potential charges.
While tax advice should be sought from a qualified professional, understanding your responsibilities early can help you manage your investment more effectively.
If you decide to switch to a new mortgage deal or repay your mortgage early, you may face early repayment charges. These costs vary depending on the lender and the specific terms of your mortgage.
For landlords looking at refinancing options, bridging loans in Sunderland can sometimes be used as a short-term funding solution, but it’s important to consider the fees and conditions before making any financial commitments.
When you begin the process of looking for a mortgage in Sunderland, you will soon realise that there are a wide variety of different options available. By enquiring for expert mortgage advice in Sunderland, we’ll help you to determine which one is right for you.
Below you will see a list of the most popular types of mortgages available on the market. If you have any questions regarding the mortgage options below, do not hesitate to contact our fantastic team of mortgage advisors in Sunderland.
A fixed-rate mortgage means that your mortgage payments are going to remain consistent for a particular duration. You are able to choose how long you fix your payments for, with this typically being around 2-5 years.
This means that no matter what happens with inflation, interest rates, or the economy, you know that your mortgage payment, which will most likely be your biggest outgoing, will not change.
When you have a tracker mortgage, this means that your interest rate will follow alongside the Bank of England’s base rate. In this situation, the mortgage lender that you are with will not be setting the rate themselves.
You will be paying at a percentage above the Bank of England base rate. For example, if the base rate is 1% and you are tracking at 1% above base rate, that means you will be paying a rate of 2%.
Home buyers who are looking to take out a repayment mortgage will have a combined amount of capital and interest to pay each month.
If you are able to maintain those monthly mortgage payments, he mortgage balance is guaranteed to get paid off at the end, with you owning the property outright.
A repayment mortgage is generally considered to be the most risk-free way to pay your capital back to your mortgage lender. Early on it will mainly be the interest that you are paying and your balance will reduce very slowly, especially for homeowners with say a 25+ year term.
This will change over time and in the last ten years or so of your mortgage, your balance will be reducing at a much quicker rate, as you will be paying back more capital than interest.
While you will find that a lot of buy to let mortgages in Sunderland get set up on an interest-only basis, it is much difficult for a residential home buyer to take out an interest only mortgage on their home.
Typically, you will find that it is much less likely for a mortgage lender to offer interest only residential products to customers, though there are a selection of circumstances where this type of mortgage may still be applicable.
These tend to include downsizing when you are older or have other investments that you will use to pay the capital back. Mortgage lenders can be quite strict when it comes to offering these products now, and the loan to values are a lot lower than they used to be.
With an offset mortgage, your mortgage lender will go ahead and set you up a savings account that will run alongside your mortgage account, to help you offset the balance and reduce the interest paid overall.
For example, let us say you have a mortgage balance of £100,000 and £20,000 is deposited into your savings account, you only pay interest on the difference, which in this case would be £80,000.
It is for this reason that an offset mortgage could be a truly efficient way of managing your money, especially if you are a higher rate taxpayer.
If you like the sound of any of the mortgage options that have been mentioned above, have any other questions relating the mortgage process or would like to get the ball rolling on your mortgage journey, please do get in touch.
In booking your free mortgage appointment online, you’ll benefit from speaking to a trusted and qualified mortgage advisor in Sunderland, who will look to guide you through the process as best they can, finding the most suitable mortgage product to fit your circumstances.
Here are some of the reasons for customers looking to obtain a second mortgage:
If you have a large amount of equity built up in your home and are looking for a second mortgage to release some of the funds to put towards a new home or something else, then your experienced Mortgage Advisors in Sunderland may be able to help.
Usually if customers find they are currently on a lenders standard variable rate, our team are able to shop around and find a more competitive deal, whilst also being able to release capital. A further advance with your current Lender is also a route you could take.
Some customers consider moving home in Sunderland, whilst retaining ownership of their existing property with the intent to rent it out. Your second mortgage will be a new residential mortgage. This type of move is known as a Let to Buy and over the years has become a popular option amongst homeowners.
Maybe you are exploring the possibility of helping your children or grandchildren with in finding a spot on the property ladder. Nowadays there are many products that we can run through to make this work.
Is your name currently on another mortgage and you’re looking to purchase a new property to live in? This is something that we come across quite often, especially when factoring in things like divorce or separation and can often help.
Whatever your situation is in wanting to obtain a second mortgage, your experienced Mortgage Broker in Sunderland will be able to search 1000’s of mortgage deals on your behalf and recommend the most suitable product for you based on your personal circumstances.
To be able to recommend the most appropriate mortgage for you based on the circumstances you’re currently in, it is of vital importance that our mortgage advisors gain a complete understanding of your financial situation. As a mortgage broker in Sunderland, the primary way we believe this can be achieved is by obtaining an up to date copy of your credit report.
We personally would highly recommend using Check My File to do this, as they are able to bring in your data from 4 different credit reference agencies, giving you a more accurate and detailed look at your personal credit profile. It’s especially handy, as in some instances, the data that is held by one agency, may differ to the data from another.
Try it FREE for 30 days, then £14.99 a month – cancel online anytime.
When it comes to sending your credit report by email, the steps necessary will be a bit different depending on what device and email client you are using, e.g., Android, iPhone or Desktop & Gmail, Hotmail or Yahoo, etc.
A member of our dedicated mortgage advice team in Sunderland will review your credit report, before they give you a call to discuss your mortgage plans in further detail.
As a mortgage broker in Sunderland with lots of experience across the industry, we have in-depth knowledge of lenders various criteria. Some of the lenders we work with are specialist lenders. Please take a look at our specialist mortgage advice in Sunderland page for more information on complex cases.
No matter if you are a first time buyer in Sunderland or looking to move home in Sunderland, we will use our knowledge and the information displayed in your credit report to work hard in finding the most appropriate mortgage deal for needs and personal circumstances.
If you’ve been thinking about taking that step onto the property ladder, you may be wondering whether or not to use the assistance of a mortgage broker in Sunderland. We of course believe that our service is incredibly beneficial, especially for first time buyers in Sunderland.
Despite this, we felt it appropriate to give a balanced overview of the pros and cons of coming to a mortgage broker in Sunderland, compared to direct to a mortgage lender.
People tend to think that they are more likely to save money by not using the services of a mortgage broker. It can seem a lot more cost-effective to just do everything by yourself.
With that in mind, you may be one of those who prefer going directly to the high street mortgage lender. Another reason why people used to prefer going to the bank directly, was that people felt their bank manager knew their finances inside and out, although this changed when credit scoring was brought into the mix.
There is also truth to the claim that some lenders have additional exclusive mortgage products only for the people who directly obtain a mortgage. The main intention behind such ideas is to attract customers away from the services of a mortgage broker.
Ultimately, it is a good way for them to spread the business. The interesting part is that it is arguably just as enticing to speak with a mortgage broker in Sunderland as well. You’ll find that some mortgage offers can only be obtained through a mortgage broker.
From 2014 onward, lenders were no longer able to sell mortgages to anyone on a non-advised basis. At that time, it was a common occurrence for non-advisors to forcefully advise their bank customers, meaning they’ll have had no benefits from consumer protection. Speaking to a professional mortgage advisor in Sunderland will allow those benefits.
It is also important to remember that taking an appointment with a bank can sometimes take months to try and get yourself booked in for. A mortgage broker in Sunderland is often able to get you booked in within the same week, usually within that same day.
These kinds of issues is why the importance of mortgage brokers has grown and changed the public perception over time. More and more applicants rely on the mortgage brokers than before for help with their mortgage process.
There is now a lot more trust for the mortgage brokers in Sunderland, who are typically able to offer their mortgage advice services within the same day. Our dedicated team are always ready to help you, so get in touch and we will put you with an experienced mortgage advisor in Sunderland, as soon as possible.
You might be wondering what exactly causes some of the mortgage applications to be more difficult than many applicants expect them to be. Here are some of examples of this:
In years gone by, it was a lot easier for mortgage lenders to get ahead of their other competitors by laying out more enticing offers than the others have. Times have changed and it’s now more than the deals, it’s the criteria, that differentiates between the lenders.
To make everything easier for you, you should speak with an experienced mortgage broker in Sunderland and see if they have come across a similar situation in the past or not, as they may be able to utilise their knowledge from that to help you through yours.
After undertaking lots research and working very hard, a dedicated mortgage broker will hopefully be able to guide you through your journey and be able to recommend the most suitable mortgage for your personal circumstances.
Even if your mortgage application seems rather simple, it may still be beneficial to use the services of an experienced and knowledgeable mortgage broker, as we will work hard to get the best deal we can for you.
We have a professional and trusted mortgage advice team that will be able to provide guidance on other services such as solicitors. By getting in touch with us, you will also be updated you about the surveys and protection information that will be available to you.
A key feature of our service that we love to shout about, is how we’re more quicker and responsive compared to the other mortgage brokers.
One of the biggest reasons why customers tend to require help, is that everyone nowadays is very busy and needs someone to take the weight off their shoulders, doing the hard work for them.
Our dedicated and loyal mortgage advisors in Sunderland will do everything they can to make sure the process goes smoothly for you.
If you are ready to chat with a dedicated advisor about your mortgage plans, please get in touch with a mortgage broker in Sunderland. We are available from early until late, all throughout the week, to help you find the perfect mortgage deal.
There are multiple different reasons why someone may look to obtain themselves a second or even at times, a third mortgage. A good example could be used as a means to grow your property portfolio. Alternatively, it can be used to house a family member.
Obtaining a second mortgage can be quite difficult, more so than your first one, as now you’re having to account for two sets of mortgage payments, which could have a knock-on your affordability. If you are unable to afford the costs involved with a second mortgage, the mortgage lender will not accept your application.
As a trusted and dedicated Mortgage Broker in Sunderland, we’ve seen people apply for a second mortgage for all kinds of different reasons. These include;
If you happen to be over five years into your mortgage term, the chances are that you’ve built yourself up a suitable amount of equity in your home. You can withdraw some of this equity and turn it into cash, through taking out a second mortgage.
This situation is known as a further advance. A further advance is when you borrow more from your current lender to fund something like home improvements or a second mortgage.
What you do with that money is completely your choice, after all, it’s equity you’ve built up in your own home. Some people use it to fund the deposit of another mortgage, whilst others may use it to take their dream holiday. There are no limitations once you’ve withdrawn that equity.
The amount that you can borrow from them will depend on the amount of equity in your property. It is worth noting though that releasing equity within your home isn’t always an easy process. Speaking with a Specialist Mortgage Advisor in Sunderland will definitely benefit you along the way. Our advisors have access to a unique and vast selection of second mortgage deals.
No matter if you’re a landlord with experience within the market already or someone who is looking into making their first purchase on an investment property, you’re going to need more than one mortgage to achieve your goals.
Buy to let landlords that have amassed themselves a suitably large portfolio will likely be used to the process of getting more than one mortgage. For those starting out as a landlord, sometimes you need help getting everything sorted properly.
Second mortgages in the form of buy to let work in a similar way to the first mortgage you took out. You still have to meet the mortgage criteria and put down a deposit (typically 15%-25% of the property), as well as passing affordability checks.
Affordability in this case isn’t always down to your own income though, as some lenders will look into what the predicted rental income will be expected and stress test this against their own multiples.
No doubt the cost of your mortgage payments should be sufficiently covered once you have found tenants and they have moved in. Initially though this might prove challenging, so you need to be able to cover the costs until the income starts to flow.
For buy to let mortgage advice in Sunderland, please feel free to speak with our buy to let mortgage experts here at Sunderlandmoneyman.
This sort of process is what is known as a let to buy mortgage. Some homeowners will have an option to get a second mortgage on a newly purchased home, allowing them to rent out their current home and move into a new home for themselves.
Let to buys are of course very similar to buy to lets, it just works a little bit differently. In this case you need to find a tenant for your current property, in order to move out yourself. Landlords may do this if they want to move themselves into a bigger family home.
Our expert buy to let mortgage advisors in Sunderland also have a lot of experience and knowledge in working with let to buy mortgages, so get in touch if you would like an advisor to help you with a let to buy second mortgage.
If you have any children or other family members that are having some difficulty in getting themselves onto the property ladder, you may have the option to take out a mortgage in your name and allow them move into the it as their new home.
Going down this route will likely land you with a guarantor mortgage.
Another popular option that some people go with is to gift the person in need their deposit. Gifted deposits are crucial to the property market and are always a fond option for helping a loved one find their footing on the property ladder.
As noted in this article, there are various reasons as to why you can be listed on two mortgages. Sometimes it’s something you’ve planned for, but in other cases it can be completely unintentional.
We regularly find through our work as a Mortgage Broker in Sunderland, that one of the most common reasons for someone taking out a second mortgage is divorce or separation.
The difficult part here is that it can be hard to remove your own or your ex-partner’s name from the mortgage you share. This is once again down to affordability, but also down to both parties having to mutually agree.
Though it may come with challenges, it is not entirely impossible to obtain a mortgage post-divorce or separation. If you are in a similar situation, there may be some mortgage lenders out there who will give a bit of leeway considering your current personal situation.
If you’re named on an existing mortgage for a home you no longer live in, you should look to get your name removed as soon as possible. Having financial ties to someone can sometimes bring your overall credit score down, especially if the other person is bad at managing their finances and getting into arrears regularly.
If you are looking to invest in another property that isn’t your current home, you are going to need to take out another mortgage. There are many different reasons why someone may want a second mortgage. Some people may even want more! It entirely depends on what the applicant wants.
Before you will be able to take out another mortgage, you will first have to pass the same affordability checks, credit checks etc., that you passed to qualify for your current mortgage. In order to understand why people may want to take out another mortgage, we have compiled a list to show how it can be made possible in both residential and buy to let scenarios.
Before you can take out another mortgage on a residential property, you will have to demonstrate that you can afford it. Lenders will need to see that you can not only afford one but two mortgages. Most people want a second residential home for a home away from home. They may use it for work, get-aways/holidays or for their family to stay in from time to time.
We have seen that some people may take out a second mortgage to purchase a home for a family member. This option isn’t as popular as people prefer to use gifted deposits over paying another mortgage off.
The problem that you may encounter when taking out a residential mortgage is that you can only live in one property at once.
You also cannot buy another property with a residential mortgage, with plans to let it out in the future. Buy to lets are taxed differently, therefore, this would be illegal.
Residential mortgages have high loan to value ratios. This loan is being secured against the property (or an asset). With this in mind, you usually cannot get another mortgage on the same property.
The only real exceptions would be if you took out a second charge mortgage or a further advance. A second charge mortgage allows you to borrow slightly more from your property with the same lender, and a further advance is the same but through a different lender.
Because you’re borrowing extra on top of your existing mortgage, you will have to pass various affordability checks before receiving the go-ahead. Depending on which product you take out and the rates that come with it, these could end up costing you quite a bit. Speak to a Mortgage Broker in Sunderland like us before taking out something like this.
Buy to lets mortgages are a little easier to work with if there is more than one. There are no real limits to how many buy to let properties you can have, which is why it makes it easier.
Qualifying for them can be difficult, however. You must consider that the more buy to let properties that you have, the more monthly repayments you are accountable for. Theoretically, they should pay for themselves, however, if your tenant moves out and you struggle to find a new one, you are accountable for the repayments. Lenders will check that you can afford this before they let you take out your new buy to let mortgage.
One issue that you may encounter could be the location of the property. Some lenders may be less willing to lend on a street where you already own a property. We have also seen that they may not be willing to lend on a property that is in the same area as one of their own buy to let properties. The reasoning for this is that if one of the properties goes down in value, they’re likely to be more affected by it.
Strictly, no. Living inside of a buy to let property is a breach of your contract between you and your lender. You may be fined for this and face legal action. If you want to turn your property into a buy to let, you will need to remortgage the property and take out a new deal suited to your needs. Before you do this, you should look into buy to let mortgage advice in Sunderland.
If you still have any more questions regarding residential and buy to let properties, feel free to get in touch with our team. We recommend speaking with a Mortgage Broker in Sunderland to get the best answer to your specialist questions.
Having one mortgage to sort out can be stressful enough, never mind another one! Our team at Sunderlandmoneyman are more than happy to help and we can’t wait for you to get in touch. Book your free mortgage appointment online or give us a call.
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Sunderlandmoneyman.com & Sunderlandmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Sunderlandmoneyman 2025.
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Sunderlandmoneyman.com & Sunderlandmoneyman are trading styles of UK Moneyman Limited, which is authorised and regulated by the Financial Conduct Authority.
UK Moneyman Limited is Registered in England, No. 6789312 | Registered Address: 9 Gallows Lane, Beverley, United Kingdom HU17 7FJ.
Authorised and Regulated by the Financial Conduct Authority.
We are entered on the Financial Services Register No. 627742 at www.register.fca.org.uk.
© Sunderlandmoneyman 2025.
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