Buy to Let

Buying a property to rent out can be a a great way to make  money and save for future investments.  However, when you buy a property as an investment, you won’t be able to fund your purchase with a normal residential mortgage. If you plan to rent out your property, you need a buy-to-let mortgage.

How does it work?

Most buy to let mortgages are provided on an interest only basis. This means that for each month of the mortgage term, you’ll only pay the interest on the loan, and none of the capital.

 

Main conditions

• The amount you can borrow is based on how much rent the property can generate versus the cost of the mortgage
• You usually need to have a minimum salary of £25,000.
• The minimum deposit is generally 25% of the purchase price (sometimes this can be between 20% and 40%)

 

How much can I borrow?

The amount you can borrow is based on how much rent you can realistically expect for your property. Most lenders will typically require you to receive 125% of your monthly interest payments in rental income but can sometimes be as high as 145%.

 

How much deposit do I need?

To get a mortgage on an investment property, you’ll generally need a deposit of at least 20-25% of the value of the home.

Usually, the bigger the deposit you put down, the better the rate you’ll be able to get.

 

Whether it’s your first buy to let property or you already have other properties you’re renting, every penny counts. I will search the entire loan market for you to find the most suitable mortgage offer suited to your financial situation and expectations.