Buy to Let

The Most Suitable Mortgage Advice

Buy To Let mortgages have seen an increase in popularity over the last decade with individuals looking to create additional income streams by investing into residential property.

If you want to buy a property with the specific intention of letting to create income and you need finance to achieve this: a Buy To Let mortgage is what you need. These mortgages work in the exactly the same way as residential mortgages with lending secured against the property over a set term. Lending can be undertaken on a capital and interest, interest only or a combination of both. This will maximise rental income by minimising the mortgage costs. Repayment of the mortgage, if done on an interest only basis, is then achieved by the sale of the rental property at some point in the future.

The minimum deposit for Buy To Let mortgages is typically 25% although some lenders do offer Buy To Let mortgage products with a lower deposit subject to status.

Criteria does vary between lenders but two distinct lending camps have emerged over the last few years:

  • the majority of lender’s requiring a minimum income, typically £25,000 per annum from one applicant in order to apply
  • the minority not requiring a minimum income at all.
  • Your home may be repossessed if you do not keep up repayments on your mortgage.

    Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.