Bradford and Bingley Buy To Let

< Back

Bradford and Bingley Building Society was founded in 1964 because of a merger between Bradford Equitable Building Society and Bingley Building Society, both of which were established in 1851. Voting members agreed with the Board of Directors in July 2000 to convert to a Public Limited Company and flotation on the London Stock Exchange was on 4th December 2000.

The company was set up with the aim to help build better futures for those living in the northern mill towns and the first customer was helped in 1851.

The company now helps build better futures for people all over the UK and their aim is to be the best in the UK specialist lending market.

Bradford and Bingley is a UK based company focussing on specialist mortgages and saving products, with residential lending specialising in those that need more specialist products than are available on the mainstream market, for example buy to let investors through brokers under the Mortgage Express brand.

The first buy to let mortgages was offered in 1996 and now there are 750,000 buy to let mortgages worth over £90bn.

This market has given huge benefits to the economy and housing market with investors from all walks of life.

Their main points for buy to let investors are; make sure there is enough money for your plans, ensure money can be tied up for the long-term, do plenty of homework before purchasing property, buy what will rent not necessarily what you like.

They also add that it is important for investors to include all costs including the property, stamp duty, legal fees, surveys, valuations, decorating, refurbishment and mortgage fees. Running costs include repairs, insurance, service charges, council tax and, if used, agents or management fees and of course mortgage interest.

Words used in the buy to let sector include Gross Yields – this is the rent earned in a year shown as a percentage of value. Net Yield – this is the percentage left after taking off running costs.

Tax will be payable but some expenses can be offset such as mortgage interest payments making interest only products popular.

Buy to let mortgages differ from ordinary residential mortgages as they are loaned on the rental income of the property. The maximum usually offered is 85% loan to value so a larger deposit is also required and interest rates tend to be a little higher.

Bradford and Bingley offer free expert advice and very competitive interest rates.

< Back