Buy to Let Mortgages
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Buy to Let mortgages are different from a residential mortgage because the lender calculates the size of your loan not always based on your income, but on the potential rental yield of the property you wish to buy/remortgage. However, in recently times some lenders do require a minimum income amount.
Buy to Let mortgage lenders can offer up to a maximum of 90% loan to value, although one or two have started to offer 95% Buy-to-Let mortgages. Therefore in some cases a minimum 10% deposit is required. Buying a property to let out can be a profitable option for many people. However, there is a difference between a consumer and a commercial buy to let. You should obtain tax advice when considering taking on a buy to let.
Broadly, there is little difference between arranging a Buy to Let mortgage for investor landlord’s and a standard mortgage for owner occupation. Buy-to-Let mortgages are subject to the usual status checks. Loans can be arranged for terms of between five and 35 years and for up to 90% of the value of the property, although the majority of Buy to Let lenders restrict lending to 85% of the property value.
DISCLAIMERS
Some types of buy to let mortgages are not regulated by the Financial Conduct Authority.
As a mortgage is secured against your property it may be repossessed if you do not keep up the repayments on the mortgage.
Think carefully before securing other debts against your home.