BUY TO LET MORTGAGE ADVICE
Buy-to-let mortgages are a lot like ordinary mortgages, but with some key differences:
The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value, although it can vary as low as 15%.
BTL mortgages can be interest-only. This means you on pay the interest each month, but at the end of the mortgage term, you repay the capital in full.
Most BTL mortgage lending is not regulated by the Financial Conduct Authority (FCA). There are exceptions, for example, if you wish to let the property to a close family member (e.g. spouse, civil partner, child, grandparent, parent or sibling). These are often referred to as a consumer buy to let mortgages and are assessed according to the same strict affordability rules as a residential mortgage.
How much you can you borrow for buy-to-let mortgages?
The maximum you can borrow is linked to the amount of rental income you expect to receive.
Contact Us for a buy-to-let mortgage
It’s always a good idea to talk to a mortgage broker before you take out a buy-to-let mortgage, as we will help you choose the most suitable deal.
PLAN FOR TIMES WHEN THERE’S NO RENT COMING IN
Don’t assume your property will always have tenants.
There will almost certainly be ‘voids’ when the property is unoccupied or rent isn’t paid and you’ll need to have a financial ‘cushion’ to meet your mortgage payments.
When you do have rent coming in, use some of it to top up your savings account.
You might also need savings for major repair bills. For example, the boiler might break down, or there might be a blocked drain.
If house prices fall, you might not be able to sell for as much as you had hoped.
If this happens, you’ll be left to make up the difference on the mortgage.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.