Buy to Let

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Buy-to-let (BTL) mortgages are for landlords who want to 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. 

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

 

  • The fees can be much higher.

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

  • The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%).

  • Most BTL mortgages are interest-only. This means you pay the interest each month, but not the capital amount. At the end of the mortgage term, you repay the original loan in full. BTL mortgages are also available on a repayment basis.

  • Most BTL mortgage lending is not regulated by the Financial Conduct Authority (FCA). There are exceptions, for example, if you wish to let the property to a close family member (e.g. spouse, civil partner, child, grandparent, parent or sibling). These are often referred to as consumer buy-to-let mortgages and are assessed according to the same strict affordability rules as a residential mortgage.

 

Buy to Let property can be an investment for your future, although there is no guarantee of future performance in any investment market.

We can explain the relative merits of buy to let and advise on and help arrange the funds you might need to purchase a buy to let property or remortgage an existing buy to let property.

Whatever size your property portfolio, whatever your personal income, purchase price/property value deposit/equity and rental income, give us a call and we can explain the options available and find the best possible mortgage.

NOTE: Buy to Let mortgages are not regulated by the Financial Services Authority.

Mortgage Tree - York
01904 263012  
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