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 generally on whether or not to approve a loan on the likely rental income from the property and may or may not take into account an applicant’s income.
In order to secure finance, rental income is typically needed to be 145% of the mortgage repayment, at a nominal 5.5% interest rate or the applicable rate whichever is higher.
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.
The Financial Conduct Authority does not regulate certain aspects of buy-to-let mortgages.