Buy to Let

buy to let

Your home may be repossessed if you do not keep up repayments on your mortgage.
Buy to let mortgages are not regulated by the Financial Conduct Authority.

For many Buy-To-Let looks an attractive income investment in a time of low rates and stock market volatility. The main difference with a buy-to-let mortgage is that the lender takes account of the rent you will earn from the property as the primary source of income. Some may also take landlord's personal income into account.

Typically lenders will want prospective rental income, verified by independent sources, to meet at least 125% of the monthly interest payment on the loan. This will either be based on the pay rate for fixed and tracker deals (ie the initial rate before the deal ends) or the lenders standard variable rate (potentially plus an extra 1% or more). This is to cover landlords against periods when their property may not manage to be rented out and reassure the lender that the borrower will not default.

Lenders will generally lend only to those with larger deposits, with most deals asking for at least 30% put down by borrowers. The best deals are at the lowest loan-to-values of 60% and below.

Compared to previous years, the best buy-to-let mortgages have become much tougher to get following the credit crunch, but deals still exist. If you are looking to invest in property and are looking for a buy-to-let mortgage then please contact us and we will be able to help you every step of the way.

Please note that buy-to-let mortgages are not regulated by the Financial Conduct Authority in the same way traditional home loans are now controlled.