Buy to let mortgage | Investment property finance

Funding your portfolio
From the first – growth – diversification

First Buy to let

You can get a mortgage.

Start investing as you mean to go on. That might mean investing as a company to protect yourself against the tax situation, it could mean you’d like to refurbish or upgrade properties.

The funding is just as important as the right property – Our award-winning experts will get you the right deal for your growth plan.

Growing your portfolio can be as simple as gearing up against your existing property and other assets. Our advisors will assess your current portfolio, explain what’s available and work with you to identify the right sort of property.

Start your growth plan here

HMOs & Multi-Lets

Maximise your unit income

Get it right and a House in Multiple Occupation or a Multi-Let property can be a great asset.

Some lenders will expect previous experience as they see the increased management requirement as a higher risk but that’s not always the case.

Find out more about HMOs

Commercial and mixed use

Commercial and semi-commercial investments

As your portfolio grows (or maybe as a first investment!) you may look at the returns and tax benefits of commercial property investments.

Your Acorn finance advisor will be able to explain the differences and what funders are looking for and what will work for your own investment strategy.

Find out more about commercial investments

Your first investment in Buy to Let

Mortgage

First time landlord mortgages

Most lenders restrict first-time buyers to a loan to value (LTV) of 75% of the purchase price or value of the property.

You may be told that you have to be a homeowner but that is not the case. Our panel of lenders will lend to true first time buyers.

It’s possible to borrow more in some circumstances so if that restricts you then do talk to your advisor.

Deposit

Ways to find your deposit

Your deposit doesn’t always have to be from savings, it’s common to remortgage your primary residence, take gifts from within the family, second charges from builders, some lenders will accept deposits from credit cards or other means.

We will work closely with you to assess the best source for your deposit, and how to get the best out of it.

Other costs

Look at the big picture

There are more costs than with residential purposes and mortgages don’t cover quite as much of the value so it’s important to consider all the costs involved in the purchase;

Stamp Duty Land Tax (Land & Building Transaction Tax in Scotland) is likely to have a surcharge added for investments, especially if you are buying as a company.

Legal fees may be higher, especially if licenses are involved and some lenders will instruct separate solicitors which you’ll have to pay for!

You may need to refurbish the property before it can be let, especially if the energy rating (EPC) is rated E or worse.

If you’re in any doubt our experts will always be clear with the purchase costs and ensure that you’ve got the funding you need.

Bridging finance

Short term finance

To get started on the ladder and make your deposit go further buying lower value property can be a great accelerator.

Properties to refurbish or convert can be funded at high percentages if there’s a good enough gain in value.

There’s no need to have previous experience but you should have the skills, or the funds to pay for the skills you need for the project.

Once the work is complete we’ll move you straight onto a long term mortgage. There’s no minimum ownership time, you can remortgage as soon as the property is ready.

Frequently asked questions for new investors;

Can my first mortgage be a buy to let?
- Yes – some but not all lenders will approve a first time buyer.
Can I live in my buy to let?
- Yes – but it might change the status of your mortgage so discuss your plans with your advisor at the earliest opportunity.
Can I rent out the property I live in now?
- Yes – this is called a consumer buy to let and can be arranged with many buy to let lenders.
How much do I need to earn for a buy to let mortgage?
- There’s no minimum earnings limit, so long as you’re able to cover your outgoings with your current income and you don’t have to rely on the property to prop you up, it’s fine.
How hard is getting a buy to let mortgage?
- It can be a bit more complex to set your buy to let mortgage up than a residential mortgage, after all this is a business investment. Our experts deal with this every day and will make the process as easy as possible for you.

Growing your property portfolio

Realising your equity

Organic portfolio growth

As your portfolio grows so do your mortgage needs. The lenders you were reliant on often have maximum portfolio sizes, maximum loans and they might force you to stay in “work” rather than working on your portfolio.

Our lending panel covers these issues and more, releasing equity from your existing properties to buy more or improve your properties.

Once we understand your existing portfolio and your plan we can work with you to grow your property business.

When to grow

The perfect time to grow is now

As an investor you’ll be up to date with property values and rents in your target areas. Uncertainty around Brexit or other factors can mean property values fluctuate so it’s great to be in a position to “grab a bargain”.

If there’s value in the property and the potential is good then it’s a property you should be considering for your portfolio.

Cash flow considerations

Looking after the ins and outs

As your portfolio grows so your risk should diminish. A good portfolio is not reliant on a single source of income or type of tenant. This way if there’s a problem with benefit payments or student finance, you won’t be in a difficult situation.

Once you get over six or seven properties the risk of rental voids begins to be covered by the other units in the portfolio and allows you to concentrate on growth.

Targeting your purchase

The right funding – the right property

Being established in your target market area means that opportunities for buy to let investments will start coming to you.

Sifting the right ones and having the funding ready to seize them will allow you to get the prime properties, at the best prices.

Your Acorn finance advisor will work with you to ensure you’ll be ready when the opportunity presents.

Frequently asked questions around growing a portfolio

How can I improve the properties in my portfolio?
- With the government legislating to ensure let properties are energy efficient and the general maintenance required on your properties cashflow can sometimes be an issue. Fortunately, with our access to short term lenders and second charges, there’s always a solution even if you’re tied into long fixed rates.
Can I give up work and live off the rental income?
- Yes! Once your portfolio is big enough to support your needs then why not? There are plenty of buy-to-let mortgage lenders who will look at your overall financial position and do not require a certain level of employed earnings.
What if house values drop?
- Don’t sell! House price corrections are only an issue if you have to sell during that period. A diverse portfolio will help you to ride recessions or further changes to benefits and keep the rent flooding in. If house prices dip and you have the ability then it’s a great time to buy!

Houses of Multiple Occupation and Multi-let properties

Maximising rental income

Start up loans

Here at Acorn.finance we’ve worked with hundreds of start-up businesses since 1997. Not only do we work with the Start-up Loans company but also with independent funders who can also help, even when historic figures are not available.

Converting properties

Commercial mortgages | Structured finance | Business loans

When buying a business you need the best funding options to make sure you’ll be a massive success. From business loans to commercial mortgages Acorn.finance work with the best funders in the market to fund your perfect business.

Lenders requirements

Commercial mortgage | Asset finance | Invoice finance | Business loans

Growing your business needs the right finance to be in place. The right amount, the right terms. By taking the time to understand your borrowing or cash-flow needs, our funding experts can arrange the perfect finance solution.

HMO Legistlation

Debt consolidation | Improving borrowing terms | Reducing rates

Is your business borrowing at the best rates and terms? With interest rates still at historically low rates is it the best time to consolidate or remortgage to reduce your monthly payments? For a free consultation and appraisal contact us now.

Frequently asked questions about HMOs

What is an HMO property?
- A house of multiple occupation is becoming more commonplace as housing costs rise. The definition of an HMO is three or more households living in a property with some shared facilities. (Kitchen, bathroom or toilet facilities). If each tenant has fully private facilities then the property becomes a “multi-let” or is a block of flats!
- A large HMO is where five or more tenants share and will require licensing.
- Local authorities define their own licensing requirements so it’s important to understand these before a purchase. Conversions to HMO without the correct permissions will be significantly down-valued and a purchase might be aborted with significant costs to the buyer.
What’s the difference between a commercial valuation and “bricks and mortar”?
- HMO properties are sometimes valued based on rental yields, this is referred to as a commercial valuation. Some lenders will accept this as the value for lending if certain criteria are met;
  - The property is in an area where other HMO development would be restricted, by “Article 4” or other means.
  - The conversion of the property is such that it would not be easy to replicate in the immediate area.
  - Lenders may also look at property usage and values.
- In cases where these criteria are not met then the lender will lend against the standard value of the empty property (vacant possession) and some lenders might reduce that by the amount required to convert the house back to standard family usage.
Can I convert a property to an HMO?
- Yes – Your Acorn.finance advisor will be able to help here, so long as you check the local licensing requirements a bridging loan will help to fund the purchase and the conversion then refinance straight away onto a long term mortgage.

Commercial investment property

Why invest in commercial property

Mortgages and loans for Pubs, Hotels & Restaurants

No other finance company has the experience and lender selection that Acorn.finance can offer. Our award-winning team can put together funding for open or closed units, disposals and growth plans, experienced owners or first-time buyers.

The right property

Location, Location, Location!

Finding the right commercial property in the right location is critical to your future success, more so than with standard residential property.

The type of unit and it’s surroundings will affect it’s ability to be let easily, both now and in the future – key factors for a lender.

A small shop with a local grocer or florist on a busy high street might be easier to let than a large industrial unit – so research is key.

Our funding experts will then get you the best mortgage or bridging loan for your purchase.

Commercial investment mortgages

Commercial mortgages | Invoice & Asset finance | Business loans

Buying into manufacturing means arranging the most competitive finance package to suit you and the business. Our 250 + lender panel allows a structure of one or more lenders to suit your circumstances and your growth plans for the business.

Commercial property bridging

Commercial mortgages | Business loans | Asset finance

Buying into retail needs an understanding of where the sales are coming from and how the funding can be repaid. At Acorn.finance we’ll combine the right funding sources to get you in and trading.