A buy to let mortgage is for people who wish to buy a residential property which they plan on renting out to tenants for a monthly income.
The amount you can borrow depends on the potential rental income of the property rather than the salary of the owners. Most lenders expect a 20-30% increase on the mortgage payment.
There are several differences between a regular mortgage and a Buy-to-Let mortgage:
- Terms and conditions can vary considerably for example some lenders may enforce an upper age limit on the term of the mortgage, a minimum age of 25 years and earning above £25,000
- Interest rates are much higher for Buy to Let mortgages,
- Credit history – considering any current mortgage and credit cards
- A minimum deposit of 25%, some lenders could require as much as a 40% deposit.
- The fees tend to be higher for Buy-to-Let mortgage
For more information on buy-to-Let Mortgage, please contact us.