Buy to Let Mortgages

Someone you know may have bought a property or properties, as an investment and this may be something you are also considering.

If you want to become a Landlord and buy a property to rent out, you need a special Buy To Let Mortgage.

Most Buy To Let Mortgages are not regulated by the Financial Conduct Authority. 

In the same way as with a Residential mortgage, you can choose between Fixed and Tracker or Variable rates.  You can normally also choose whether to pay Interest Only or Capital and Interest.  With a number of the lenders you must have a minimum level of earned income. However, when it comes to assessing how much you can borrow, the key factor is not normally how much you earn, but rather the likely rental income you will achieve. 

Typically you can borrow up to 75% of the property value, and the rental income will normally need to be around 145% of the mortgage payment, based on a notional interest rate, determined by the lender, but often 5.5%. 

Many of the lenders will only accept applicants who already own their own home (with a mortgage is acceptable). The criteria on acceptable property types, is generally tighter and the interest rates slightly higher than on standard residential mortgages.

In general Buy To Let Mortgages are not regulated by the Financial Conduct Authority.

If you would like to discuss the option of a Buy To Let Mortgage or if you already have a Portfolio of Properties and would like to review your circumstances, you can contact us for a no obligation chat.