Planning a buy to let investment and need a mortgage?

If you want to invest in a buy to let but can’t afford to buy a property outright, you will need a specialist buy to let mortgage. Residential mortgages cannot be used for the purchase of a rental property and so it is vital that you apply for the right type of deal.

In general there isn’t much difference between the two mortgage types. However BTL rates are set slightly higher, as lenders view their risk as greater due to potential ‘void periods’ when a property maybe vacant between lets.

It is usual for a lender to ask for a larger deposit than would be required for a residential mortgage. The typical minimum deposit is 25% which is significantly greater than the minimum 5% required for a standard house purchase. (Never be tempted to apply for a residential mortgage and let it out as a buy to let as you would be committing mortgage fraud.)

It is often the case that many lenders will not consider you for a buy to let unless you own a property already. In addition some lenders ask for a minimum personal income requirement of £25,000, however the amount you can borrow is usually linked to the level of rent your buy to let can generate.

If you would like to explore your buy to let options contact us at Deal Direct. We have access to all lenders market-wide, and can find you a mortgage to enable you to become a first time landlord or add to an existing property portfolio.

Note:

• Deal Direct are licensed by the FCA to offer mortgage advice, we are not licensed to offer financial advice as to the suitability of buy to let as an investment.
• Not all buy to let mortgages are regulated by the FCA.

Call Deal Direct on 0800 048 8828 for independent mortgage advice.