Buy to Let Mortgages (standard)
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Buy to Let mortgages are a great tool to allow you to purchase investment properties. Whether you are looking to generate an ongoing monthly rental income, retain a property for future use, or if you are looking to build a portfolio of properties as part of a retirement plan, Buy to Let mortgage arrangements can help. Mortgages are usually viewed differently to residential mortgage as the lender is aware of the likely investment purpose. As such, lending is usually calculated based on such things as the potential rental income figure, interest rates, values and borrowing amounts. Please feel free to try our Buy to Let Calculator, accessible at the head of the page, to give you a good idea of how this works.
A standard buy to let mortgage arranged in the name of individuals (rather than a company) are usually handled in a slightly different way to a residential mortgage, as the lender is aware it is for investment purposes. It is important to note that the vast majority of these type of mortgages are not regulated. Which means you dont have the same regulatory protections that a residential mortgage would provide you.
A traditional Buy to Let mortgage requires a 25% deposit, though a small number of lenders will allow a 20% deposit for a property that meets a higher EPC rating or has a good rental yield. A buy to let mortgage can be applied to several different property types and they can be arranged on a Repayment or Interest Only Basis.
You can apply for a Buy to Let mortgage as an Employed, Self Employed, a Landlord or Retired individual. Minimum personal income is sometimes required, but not always. Customarily, lending is calculated based on self-funding calculations using a potential rental income figure, interest rates, values and borrowing amounts.
It is worth noting that these type of mortgages are not regulated. The exception to this would be if you are buying a property via a buy to let mortgage for a family member’s use. In which case, you would be applying for a regulated buy to let mortgage, which comes with many of the regulatory protections as a standard residential mortgage.