Buy-to-let is the purchase of a house with the sole purpose of renting it out.
A buy-to-let mortgage differs to a standard mortgage as it will usually have a slightly higher interest rate. The way lenders calculate how much they are willing to lend the individual is also different.
The main criteria that lenders review when assessing a buy-to-let mortgage is that the rental income is 25% more than the monthly interest repayment. The standard deposit required for a buy-to-let property is 25% although a small number of lenders are now re-entering the market and this has lowered the standard 25% in recent months. But it still acts as a guideline.
The buy-to-let market is not for everyone because there are risks as well as benefits. Before committing to a purchase we would advise that you assess the risks thoroughly.
Our aim is to source you the best buy-to-let mortgage deal to give you the opportunity to minimise the rental income required in order to remain competitive in the market whilst providing your with a better profit margin.
Please keep in mind: Buy-to-let mortgages are not regulated by the Financial Services Authority. There are no guarantees that your property will be continuously let and that the rental income will cover the mortgage payments.
Contact us for your free, no obligation consultation.
*Your home may be repossessed if you do not keep up repayments on your mortgage.