Buy to Let
A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).
More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.
There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer buy to let mortgage deals to fixed and variable rate options.
In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.
When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
Buy-to-Let deposit
You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage - it will likely be 15-25% of the property's value.
Rental income
Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage - for example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments.
Investment potential
Your buy to let mortgage lender will also want to establish whether the property you are buying is a good long-term investment.
Call 0800 32 88 680 for more information about buy-to-let mortgages.
