If you’re buying a property to rent out, you’ll need a buy-to-let mortgage. These differ from conventional mortgages you use to buy your own home, so it’s important to understand how they work…

What is a buy-to-let mortgage?

A buy-to-let mortgage is a mortgage sold specifically to people who buy property as an investment, rather than as a place to live. If you plan to rent out your property, you won’t be able to finance your purchase with a standard residential mortgage.

What is the difference between a buy-to-let mortgage and a residential mortgage?

Unlike most residential mortgages, buy-to-let mortgages are usually offered on an interest-only basis. This means that your monthly payments will only cover the interest on your mortgage. Your capital debt – the money you’ve borrowed – will not go down.

You will need to pay off this amount in full at the end of your term. You could do this by selling the property, or you could keep the property and take out another mortgage.

A buy-to-let mortgage requires a larger deposit than a residential mortgage. You’ll face larger fees and pay a higher rate of interest, and you will have to pay more stamp duty for any property that is not your main home.

Why are buy-to-let mortgages more expensive?

Buy-to-let mortgages involve higher interest rates and larger fees because they’re a greater risk for the lender. Landlords with a buy-to-let mortgage usually expect their monthly mortgage payments to be covered by the rent they receive. But some months there may be problems with rent collection, and other months there might not be any tenants living in the house and paying rent.

However, because your monthly payments will only cover the interest on your mortgage, you may pay less each month than you would for a residential mortgage.

What deposit do I need for a buy-to-let mortgage?

Most lenders will require you to put down a larger deposit for a buy-to-let mortgage. This is usually around 25% of the property’s value, but your mortgage may require a deposit as large as 40%.

A larger deposit is required for a buy-to-let mortgage because it protects the lender in case you default on your payments due to problems with collecting rent.

There are benefits and drawbacks to putting down a larger deposit. While the upfront costs are higher, paying more initially will lower your monthly costs, and also reduces the amount you will have to pay off or refinance at the end of your mortgage.

How much does a buy-to-let property cost?

The average purchase price for a buy-to-let property in 2019 was £122,786, compared with an average of £226,709 for a residential property.

This suggests prospective landlords are looking for less expensive properties, as they need a bigger deposit to get a buy-to-let loan.

The type of property they’re looking to buy might also be cheaper if they’re looking for more flexible accommodation that’s attractive to people looking to rent.

What are the interest rates for a buy-to-let mortgage?

The interest rate you pay on your buy-to-let mortgage will depend on the total amount you borrow, your general financial situation, how much rental income you’re expecting to get, and the type of mortgage you choose to take out.

There are various types of buy-to-let mortgage on offer:

Tracker mortgages: With a tracker mortgage, a lender will set the interest rate they charge at a certain percentage above the Bank of England’s base rate – which can change. This means that your mortgage repayments can also change month-to-month, depending on the base rate. If interest rates increase, then the cost of your monthly mortgage payments goes up, and if interest rates decrease, your monthly mortgage payments go down.

Discounted variable mortgages: A discounted variable mortgage is fixed at a set percentage below your lender’s standard variable rate. A discount of 2% on a standard variable rate of 5% means that you will pay 3% interest on your mortgage, but if your lender’s standard variable rate goes up to 6%, your discounted rate will be 4%. Discounted rate deals usually last two years, and you’ll then move onto the lender’s standard variable rate.

Fixed-rate mortgages: A fixed-rate mortgage can help to keep your monthly mortgage repayments at a low rate for two, three, five or 10 years. How low those payments are depends on the deals mortgage providers are offering when you take out a loan. At the end of the fixed-rate period deal, you’ll be moved onto the provider’s standard variable rate – which can be higher – so this is when you can then look for a new deal.

What happens at the end of my interest-only buy-to-let mortgage?

Because you only pay interest on a buy-to-let deal, at the end of your term you’ll need to repay the full value of your mortgage. You may be able to extend your mortgage, or you might decide to do this by selling the property.

If you choose to sell, you’ll be able to make a further profit if house prices have risen since you took out your mortgage. However, if house prices fall you’ll still need to pay off the rest of the mortgage yourself.

Who can get a buy-to-let mortgage?

Because buy-to-let mortgages are riskier for lenders, they have stricter requirements for who can get a buy-to-let mortgage. It’s usually necessary for you to already have an income of £25,000 a year, and lenders will also check your existing debts and your credit record.

Some lenders also have maximum age limits, based on when the mortgage ends. This is usually around 70 or 75, so if you’re 60 years old you may not be able to take out a 25-year mortgage.

What fees will I need to pay on a buy-to-let property?

If you are planning on buying a property to let out, there will be other fees that you’ll need to factor into your budgeting when deciding whether or not you can afford a mortgage.

You’ll need to pay tax on your rental income, as well as paying landlord’s insurance, rent insurance and letting agent fees – if you choose to use them. You will also be responsible for maintenance and repairs.

It’s worth investigating landlord regulations and landlord responsibilities to find out more about the costs involved in buying a property to let.

Can I get tax relief for a buy-to-let mortgage?

Before 2017, landlords could deduct the interest they paid on their buy-to-let mortgages from their taxes. This tax relief is slowly being phased out, and from April 2020 mortgage interest will no longer be deductible. However, you will be able to claim for a 20% tax credit on the interest you pay.

Find your best buy-to-let mortgage

You can compare buy-to-let mortgages with MoneySuperMarket’s mortgage comparison tool to help you get a better idea of what your monthly costs might be. Enter the value of the loan you’ll need and the price of the property you’re looking to buy to compare buy-to-let mortgage quotes. You can also filter by ‘interest only’ and ‘capital and interest’ to see how this affects monthly repayment costs.

Each quote will also show the maximum loan-to-value rate – the size of the mortgage as a percentage of the value of the property – that the lender would be prepared to offer you. This way, you’ll know whether or not you’d be able to afford taking out a mortgage on a second property, or whether you’d need to save up for a larger deposit.

Buy-to-let mortgage quotes can help you when you first start thinking about whether you’re ready to purchase a rental property, but you’ll still need to get an agreement in principle – and then a firm mortgage offer – to know if you can take out a buy-to-let mortgage, and at what interest rate.

This will require lenders to look at your credit history and financial situation, and it may affect the mortgage rate you’re officially offered – and whether you’ll be able to take out a buy-to-let mortgage at all.

How to plan for server migrations
The truth is that server migration really does come with its challenges, but there’s nothing you can’t overcome with careful planning.

Here are a few things to look out for and to take steps to deal with:

Changes which depend on third parties (i.e. externally hosted DNS)
Testing of new environments
Ensuring data consistency (especially for larger migrations)
Ensuring compatibility of new versions of applications and new hosting environments
Avoiding mistakes (remember that automation can reduce human error)
If you want to give yourself the best possible chance of successfully migrating to a new server, you’ll want to make a full server migration plan to map out everything that could possibly go wrong.

Once you’ve done that, you’ll need to figure out what to do if that actually happens.

Luckily, the benefits of moving to a new server usually outweigh the challenges that you’ll face along the way.

Better still, if you partner with a webhost who takes the time to understand your business, they’ll be able to guide you through the process.

Administrators have two main options when it comes to moving. 

Option #1: One at a Time
If there are no major deadlines for the server migration then moving sites one at a time can offer the most flexible approach.

But this does come with its disadvantages, including the fact that it can be so time consuming.

This method relies on simply moving sites one at a time, allowing you to phase the migration and to test along the way.

You can learn from your mistakes and try not to repeat them, but you’ll also need to stick to the migration protocol and keep accurate records along the way.

Remember, the people performing the migration are still likely to end up working on multiple sites at the same time while they wait for client approval, test results and DNS propagation, and this increases the risk of mistakes being made or of steps being skipped accidentally.

Option #2: All At Once
This option relies on moving everything in one swoop, and it’s a bit like ripping a plaster off.

You might spend a couple of days putting out fires, but it saves you the trouble of working on a long, drawn out project to slowly switch servers.

This approach is frightening – especially if you’re hosting multiple sites on the same server – and it’s also fraught with danger by its very nature.

But despite that, it’s often worth doing – especially if you’re working to a deadline or if you’re under pressure to get the job done.

All at once migrations are particularly common if you’re switching server setups but keeping the same provider, because it often allows you to keep the same IP address, reducing delays and forwarding errors at the DNS level.

Ultimately, this type of migration is usually riskier than moving sites one at a time, but it can also save time and reduce disruption over a long-term period.

Three steps to server migration
By now, you should know why server migration is necessary and what types of approach you can take once you’re ready to get stuck in.

Now you’re ready to get started, which is why we’re sharing our three-step approach to server migration.

Let’s go.

Step #1: Analysis and consultation
When it comes to web hosting, there’s no such thing as a “one size fits all” approach. Every single site has unique requirements.

That’s why you should work closely with your new webhost to identify potential issues.

A good host will ask questions like:

What kind of content are you hosting?
Do you use a CMS (e.g. WordPress, Joomla), static content (such as HTML and images) or something else?
Are you hosting an ecommerce site?
Will your emails be hosted on the same server?
How much traffic are you expecting to receive?
What level of resources does your current server consume (in terms of CPU, RAM, MySQL queries, etc.)?
Do you need a control panel (such as cPanel or Plesk) to manage your services?
Are you running any custom scripts or software?
What software versions are you running?
Step #2: Migration begins
You can start to migrate your websites just as soon as your new hosting plan is in place.

Many hosts can offer panel-to-panel migrations for both cPanel and Plesk, which can take away a lot of the hassle by making sure that you’re familiar with your new setup.

Cross-Panel Migrations
Some hosts can even carry out cross-panel migrations, such as from Plesk to cPanel, although this often incurs an extra fee because of the manpower needed.

On top of that, it’s not always perfect – we’d caution against it unless it’s absolutely necessary.

Most migrations start out with a full backup, just in case something goes wrong.

After that, most hosts will ask for the following:

Working credentials for the current data at the old location
Full root access (for dedicated or VPS setups)
Access to the panel, as well as FTP (for shared hosting)
Step #3: Auditing and validating
A lot of people will lie and tell you that there are only two steps to migration.

We can see the appeal – it’s easy to think that once you’ve copied the files over, you’re good to go.

Unfortunately, that’s just not the case.

Some webhosts will simply copy the files, mark your ticket as “done”, take the money and run.

This is one of the common themes of the horror stories that you’ll see across the net, but it isn’t a fair representation of hosting as a whole.

The best webhosts want to make sure that everything is working properly. You can try to test it yourself, but it’s not recommended unless you’ve got the expertise to do it properly.

Still, if you’re brave enough to give it a go, have no fear.

We’re happy to help out, which is why we’re sharing some of the server migration checklists that we use when working with our clients.

Server migration checklists
Validation Checklist
Set the hosts file to locally load services
Check to see if all required services are functioning
Check your site for 404 errors, 500 errors, PHP warnings, etc.
Update all server software to the latest version
Tune LAMP performance (Apache, MySQL, PHP)
Test the cron
Check email deliverability and email records (DKIM, SPF, etc.)
Verify mail is synced (i.e. that all messages are there and all contacts have been migrated)
Check backups are still working
Security Checklist
Audit firewall configuration
Identify and implement non-standard security requirements
Restrict access where appropriate
Implement programs to educate staff
Ensure setup is compliant with all protocols
Configuration Checklist
Analyse configurations of both old and new hosting environments
Configure web server modules (i.e. suexec, mod_php, mod_perl, mod_ssl, etc.)
Identify shared libraries and other code/program dependencies
Set up SSL certificates
Create fresh (or import existing) configuration files
Import databases
Fine-tune server performance
Check and reconfigure applications that connect from remote sources
User Account Checklist
Migrate user accounts and passwords
Consider forcing password reset on next login
Purge old/inactive accounts
File System Checklist
Ensure all files copied over
Check that permissions are correct
Crawl website to identify 404 not found errors
Final Check Checklist
Were all of the issues addressed during migration?
Was the migration painless? If not, what went wrong?
Are you happy with your new server?
What else (if anything) needs doing?
Almost done. Lets talk about DNS.
It’s time – your files have been migrated and you’re all set up and ready to go on your new server.

Now it’s time to update your DNS to point users towards the data and files on your new server.

Remember that DNS updates can take 24-48 hours to fully propagate across the globe, although many European and North American areas take mere minutes or hours.

But ultimately, a short delay is a small price to pay for a stronger server.

Final takeaways
No setup lasts forever and so server migrations are inevitable eventually – if your business is strong enough to survive the test of time.

Server migration doesn’t need to cause a headache, although there are plenty of potholes in store if you don’t know what you’re doing.

That’s why you need to weigh up the pros and cons and to make an informed decision before you make a commitment.

Speaking of commitments, the best webhosts will be more than happy to invest some time up front to help you to settle into your new environment.

You’ll want to look for a company that has both the infrastructure and the expertise to help you to set up a new home, not just for your current site but for iterations to come.

And if you’re struggling to handle it all, don’t worry. We’ll be more than happy to help!

Still have questions? No problem! We’re always happy to talk, so be sure to get in touch.

Deal ‘Not Impossible’ as Leaders Prepare to Meet: Brexit Update https://www.bloomberg.com/news/articles/2019-10-10/deal-not-impossible-as-leaders-prepare-to-meet-brexit-update

Don’t expect much change in the iPhone 11 though

One of the most distinctive features of the newest iPhones is the top notch that houses the camera and upper speaker – both the iPhone X and iPhone XS have it, even though many other modern smartphones have come up with more modern solutions, or use smaller notches. However, it looks like the iPhone 12 will drop the feature, based on analyst reports.

According to China Times, which has read a research note from analysts from Credit Suisse bank, Apple is moving to reduce and even remove the notch in the coming years, starting with one phone in 2020, then all its models in 2021.

• These are the best iPhones you can buy
• And these are the best iPhone deals right now
• What do we know about the new iPhone 11?

Apple is reportedly looking to embrace under-screen technology for the front-facing camera in the future, like the kind Oppo unveiled at MWC Shanghai. We’re still expecting it to be quite a while before this kind of tech is common in smartphones, so Apple could be one of its first champions.

One of the casualties of dropping the notch would be the loss of Apple’s Face ID, which provides quicker log-in than typical face recognition through a smartphone camera, but Apple is apparently looking to replace this with the in-screen fingerprint recognition that’s common in new smartphones.

However, don’t expect to see these big changes in the iPhone 11. We’ve heard repeatedly that the 2019 iPhones, which are set to be revealed near the end of the year, will only be a modest improvement over the iPhone XS range.

Instead, the analysts predict the first notch-free iPhone will come in 2020, with the iPhone 12 series – but not all of them. Instead, the note suggests only one of the iPhone 12R, iPhone 12, and iPhone 12 Max, will have no notch, and the rest will follow suit with the iPhone 13 range in 2021.

Since Apple usually brings its newest tech to the ‘Plus’ phones, we’d expect that of the three 2020 models this improvement is most likely to come to the iPhone 12 Max.

While most iPhone rumors we’ve heard so far are for the iPhone 11, we’ve been hearing a fair bit about the iPhone 12 too, like how it could have 5G, and it looks set to be a much more impressive smartphone than Apple’s upcoming 2019 smartphones.

iPhone rumors and leaks never stop, so stay tuned to TechRadar for all the latest on Apple’s premium handsets.

Huawei Personnel Worked With China’s Military on Research Projects https://www.bloomberg.com/news/articles/2019-06-27/huawei-personnel-worked-with-china-military-on-research-projects

Starling Bank has added buildings and contents cover from Churchill insurance to the Starling Marketplace.

The partnership allows the insurer to sell its products on the bank’s app via Starling Marketplace. Starling already offers deals and products from business partners including online mortgage broker Habito, investment firm Wealthify, and pension company Pension Bee.

Starling’s in-app Marketplace uses API technology to let customers share data with third parties. Open Banking reforms means consumers can allow businesses, other than their bank, to access their financial data.

Starling customers who choose to select home insurance through Starling Marketplace will be directed to Churchill’s quote and buy page after opting in to have some of their details pre-filled. If a customer chooses to convert their quote to a policy, details of the start and end date will be stored within their Starling account.

Rob Fleet, director of partnerships at Direct Line Group, said: “We are delighted to be working with Starling Bank. We recognise that the platform economy provides significant opportunities to streamline the insurance experience.

“Starling Bank are at the forefront of this movement and this partnership enables us to innovate as we continue to make insurance easier and better value for customers by providing seamless access to our insurance services through transactional APIs.”

Anne Boden, CEO at Starling Bank, said: “Churchill is a well-known and trusted brand and we are both committed to using technology to financially empower our customers. Partnering with Churchill means Starling customers will save valuable time and effort on their house insurance.”

Shop around

Although buying home insurance through Starling’s app might be convenience, customers should remember to compare quotes in order to get the best deal.

As well as comparing premiums, customers should also double-check exactly what is covered, the excess payable, and any exclusions that may mean a claim isn’t eligible to be paid.