All you need to know
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.
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-
-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