Buy To Lets
A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).
More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.
There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer buy to let mortgage deals to fixed and variable rate options.
In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.
When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
Buy-to-Let deposit
You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage – it will likely be 15-25% of the property’s value.
Rental income
Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage – for example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments.
Investment potential
Your buy to let mortgage lender will also want to establish whether the property you are buying is a good long-term investment.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
We may charge an admin fee and accept a commission from the mortgage provider. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity. Further details available on request.
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages