Buy-to-Let

All you need to know

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Buy-to-let (BTL) mortgages are for landlords who buy property to rent it out. The rules around buy-to-let mortgages are similar to those around regular mortgages, but there are some key differences.

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Who Can Get a buy-to-let mortgage?

- You want to invest in houses or flats

- You can afford to take a risk: investing in property is risk, so you shouldn't take out a BTL

  mortgage if you can't afford to take that risk.

- You already own your own home: You'll struggle to get a buy-to-let mortgage if   you don't already.

- You have a good credit record and aren't stretched to much on your other 

  borrowingsotherwise you might struggle to get a lender to approve your Buy-to-

Let mortgage.

-Your under a certain age: lenders have upper age limits, typically between 70

  or 75. This 

  is the oldest you can be when the mortgage ends not when it starts.

Buy-to-let mortgages are a lot like ordinary mortgages, but with some key differences;

- The fees tend to be much higher

- Interest rates on buy-to-let mortgages are usually higher

- The minimum deposit for a buy-to-let mortgage is 25% of the property value

- Most BTL mortgages are interest-only. this means you don't pay anything off the loan, but   at the end of the mortgage term you can repay the capital in full.

- How much you can borrow for buy-to-let mortgages

- The maximum you can borrow is linked to the amount of rental income you expect to      

  receive