Buy-to-let has in recent years, become an increasingly popular mortgage option for those wishing to invest in residential rental property.
Like a standard mortgage, landlords have a choice between interest only and repayment mortgages. However, buy-to-let mortgages differ in several important ways from standard mortgages.
A major difference is the criteria lenders apply when considering approving a loan. Buy-to-let mortgage lenders base their decisions on whether or not to approve a loan on the likely rental income from the property and not the applicants’ income.
In order to secure finance, rental income is typically needed to be 125% of the mortgage repayment, although as little as 100% rental coverage is available.
To find out more about buy-to-let, and the mortgages available to you, contact us today and we will work through the options available to you.
Buy-to-let mortgages are NOT regulated by the Financial Conduct Authority.
If you need any more information, then simply speak to an expert today.