A buy-to-let mortgage* is for landlords who want to buy property to rent out to tenants. You may need a larger deposit than a regular mortgage and the interest rates can be typically higher. *Please note that some forms of Buy to Let mortgages are not regulated by the FCA
With so many options to consider, it can seem very confusing. So, to help you out we've answered some of your most common questions. For more specific advice about the options available for your circumstances, why not get in-touch with one of our friendly advisors.
A buy to let mortgage is designed for those who wish to invest in property and rent it out to someone else.
You'll generally need a deposit that covers at least 25% of the value of the house. As per a standard residential mortgage, the larger the deposit you put down, the better the rate you'll be able to obtain.
Lenders will also consider your current portfolio when assessing your affordability as well as any previous history of obtaining and paying off any buy-to-let mortgages.
You can either choose an interest-only or repayment mortgage. Most landlords tend to choose interest-only buy-to-let mortgages, as this helps to keep payments lower. However, you can also choose a buy-to-let repayment mortgage if you prefer to pay off the capital each month, but be aware that your monthly repayments will be higher.
Landlords are not permitted to live in their buy-to-let property without permission from their lender. If a landlord decided they wanted to live in their rental property they would most likely need to switch to a different mortgage product.
We not only search the market for the best rates we also complete all the admin and form-filling, leaving you to focus on your house move. We always communicate rather than waiting for you to contact us, we pride ourselves in staying in touch both with you and the lender to ensure the process moves forward in a timely fashion.
Our initial advice is completely free. However, we typically do charge a fee of £295, which is only payable on offer or completion.
Our simple mortgage calculator can help you to calculate your LTV (loan to value) and what your likely mortgage repayments will be. Remember, you will need to allow for other costs such as stamp duty, solicitor fees and moving expenses.
There will be additional fees that you'll need to include within your house purchase budget
Examples may include: Solicitor fees, Broker fees, Conveyancing fees, Mortgage fees, Stamp duty.
If your mortgage is a fixed rate, your payments will remain the same for the deal period, but could increase at the end of the deal period.
For a more detailed summary of your house purchase costs, it's advisable to discuss the options available to you for your circumstances with a qualified mortgage advisor.
To find out more about mortgages, personal insurance, business insurance and protection or to discuss the options available for your circumstances, contact our team of advisors