Buy-to-let Mortgages

Rising property values and a booming lettings market has meant that many lenders have developed mortgage deals tailored to the needs of would-be landlords.

A buy-to-let mortgage is a loan for purchasing a residential property that is let to tenants rather than lived in by the borrower. The typical deposit required is likely to be around 25%, although better deals will be available to those who can put down as much as 40% of the purchase price. Most buy-to-let mortgages are available on an interest only basis. Lenders will consider the potential rental income the property will generate when deciding whether to grant the loan.

A Buy-to-Let mortgage will be secured against your property.

The Financial Conduct Authority does not regulate some forms of Buy-to-Let mortgages.

  • While the application process for a buy-to-let mortgage is similar to applying for a standard mortgage for a home to live in, the eligibility criteria for buy-to-let will differ.
  • A buy-to-let mortgage will often demand a higher deposit – usually around 25% of the property value. Interest rates are also typically higher.
Usually, buy to let mortgages are interest only and therefore you’ll only need to pay the interest off every month
When considering a buy to let mortgage, you should make sure you understand the other costs such as valuation fees, legal fees and stamp duty
Doing your research is important when buying a buy to let property

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