Buy To Let Mortgages
There are plenty of competitive mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer mortgage deals to fixed and variable rate options.
Buy to let mortgages are available to individuals, joint borrowers and limited companies. We are available to talk about the tax consequences of purchasing a buy to let property as an individual or a limited company, and the advantages and disadvantages of each.
Mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income. When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
- You will be required to put down a deposit and this will be typically larger than for a standard residential mortgage – it will likely be 25% of the property’s value.
- Your expected rental income must exceed your mortgage repayments by a certain percentage – for example, your lender may require a rental income of up to 125% of your monthly mortgage payments.
- Your lender will also want to establish whether the property you are buying is a good long-term investment.
A buy to let mortgage will be secured against your property. Some types of buy to let mortgages are not regulated by the Financial Conduct Authority
A buy-to-let mortgage is designed for borrowers who want to let a property out to a third party.
More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of providing an income for their retirement.
Independent Lending are specialists in providing mortgage advice.