Buy to let…
What is a buy-to-let mortgage?
You buy take out a mortgage on a house with the possibility or intention of being able to let out your property.
What are the key differences with a residential mortgage (a property you inhabit) and a buy to let mortgage?
Buy to let
1.The amount you borrow it not assessed on just your income
2. Lenders will consider the amount you are expected to earn as an income from tenants
3. A lender will usually require annual rental payments to be 125% of the mortgage
4. The fees and interest rates are typically higher
5. The minimum deposit required to put down is between 20-40% of the property’s value
What types of mortgages are available for buy to let?
- Interest only and repayment buy to let options are available
- Most landlords opt for an interest only option to reduce monthly payments
- A repayment buys to let mortgage is a better option to void paying off a huge amount later down the line
Buy to let mortgages eligibility:
- Good credit history ideally
- Required income as normally this will be taking on the income of a second mortgage
- Most lenders will not take on first time buyers for a buy-to-let loan
For more information on the best way to apply for a buy-to-let mortgage, we can easily guide you step by step through a deal on your selected property choice. We make all application processes simple by walking you through the process based on your needs.