Whether you’re a first-time landlord, or an experienced investor, we’ll give you the right advice and find you the right mortgage.
A buy to-let mortgage is a type of mortgage specifically used to buy an investment property to be rented out to tenants.
Buy to-let mortgages are usually offered on an interest-only basis, which means cheaper monthly payments, but remember you’ll have to pay the mortgage off in full at the end of the term. Most people sell the property to do this.
As well as looking at the value of the property, when deciding on how much you can borrow, lenders will also consider how much rental income you can expect to receive. They’ll want your rental income to be at a minimum 125% of the monthly mortgage payments.
You’ll need a bigger deposit to get a buy to-let mortgage – usually between 25% and 40%.
Who are buy-to-let mortgages for?
Buy-to-let mortgages are for anyone, whether you’re a new landlord or an expert investor. In most circumstances, you’ll need a larger deposit for a buy-to-let mortgage, typically over 25%.
How much can I borrow for a buy-to-let mortgage?
The amount you can borrow depends on the value of the property and the rental income you’re expecting to receive. Lenders will usually ask that the expected rental income is at least 125% of your monthly interest payments. If your payments are around £400 a month, they’d expect you to charge around £500 a month rent.
How many buy to-let mortgages can I have?
That depends on the lender. Most lenders set a limit either in monetary terms (as in, a total amount of borrowing) or in the number of buy to-let mortgages (as in, a maximum number of mortgaged rental properties). When you speak to one of our advisers, they will take any other properties you have into account and search for a suitable lender that matches your circumstances.
A&A Independent Financial Services Ltd (FCA number 950425) registered Office: 2 Acorn Grove, Kingswood, Tadworth, Surrey, KT20 6QT
The actual APRC you are eligible for depends on individual circumstances. If you are thinking of consolidating existing borrowing you should be aware that you may be extending the terms of the debt and increasing the amount you repay.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.
The Financial Ombudsman Service (FOS) is an agency for arbitrating of unresolved complaints between regulated firms and their clients. Further details of the FOS can be found on its website: www.financial-ombudsman.org.uk