Buy to Let Mortgages FAQ's

FAQs - Buy-to-let Mortgages

What is a buy-to-let mortgage?
A buy-to-let mortgage is similar to a standard mortgage, except that the property is purchased as a source of rental income rather than a home. Buy-to-let mortgages have been a very popular form of investment in recent years.

Why are the terms of a buy-to-let mortgage different?
Because people applying for buy-to-let mortgages are investors - rather than home owners generating regular incomes - they represent a greater risk to lenders. This is reflected in slightly higher interest rates and stricter conditions.

How are the terms of a buy-to-let mortgage different?
Rather than assessing the incomes of applicants, buy-to-let mortgage lenders will look at the expected rental income of the property. Applications will be accepted where rental income is around 30% higher than the outgoing mortgage repayments and generates more than 8% of the value of the property each year.

How are the terms of a buy-to-let mortgage different?
Rather than assessing the incomes of applicants, buy-to-let mortgage lenders will look at the expected rental income of the property. Applications will be accepted where rental income is around 30% higher than the outgoing mortgage repayments and generates more than 8% of the value of the property each year.

Should I choose a repayment or an interest only mortgage?
As a buy-to-let mortgage is purely a form of investment, many people choose an interest only mortgage to reduce the cost of monthly instalments and improve cashflow. The advantage of a repayment mortgage is that, for a little extra each month, you own the property once the term of the mortgage expires.

• Compare Buy To Let Mortgages

The Mortgage Broker – Call us on 0800 822 3355