What is a Buy to Let mortgage?

A Buy to Let mortgage is a mortgage specifically used on a property that is due to be let out to somebody else. You can arrange a buy to let mortgage either in your name or via a Ltd company which potentially creates tax benefits if you are a higher rate tax payer.

 

Points to Consider:

• You are typically not allowed to live in a property you own with a buy to let mortgage on it. As an experienced broker, we are able to get in touch with specialist lenders to explore this scenario if you wish.

• Only with very specialist products can you rent to a family member on a buy to let mortgage.

• Each lender has its own criteria, and they can encompass your own income, rental income, property valuation, property location and construction, as well as your experience as a landlord. First-time landlords can be accommodated, mortgage broker advice is essential. 

• You will typically need a larger deposit for a buy to let than a regular residential purchase. We may be able to secure 100% funding if you can provide additional security. 

• If you own 4 or more properties, you will potentially be classed as a portfolio landlord which involves further checks from the lender.