Buy to Let

How does a buy to let mortgage differ from a regular mortgage?

Put simply, business buy to let mortgages are for properties you purchase with the intention of renting them out to a third party. Consumer buy to let mortgages are for ‘accidental landlords’. Both types of buy to let mortgages differ from traditional mortgages in that:

Interest rates are 1-2% higher:

This is because Lenders view a property that you are not going to personally live in as a greater risk. Tenants do not have the same incentives as an owner occupier to look after the property and there may be times when the rental income does not cover the mortgage payments.

The minimum deposit is 15% of loan value:

While for a residential mortgage it is possible to pay as little as 5% deposit, Lenders like you to have a larger personal stake in a buy to let property as it reduces their risk whilst also giving them more chance of recouping their debt should they have to repossess the property.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME OR PROPERTY. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Can i still get a buy to let mortgage if i…

…want to rent out the property I own and mortgage a new one?

…already have mortgages on other properties?

…intend to buy as a Limited Company?

…plan to build the property myself?

Simple Home Loans has access to the whole of market and is experienced in finding the most suitable mortgage product for less conventional situations. Also with the upcoming changes to but to let/ let to buy, it’s never been more essential to get the right advice.

KEEP IT SIMPLE!

What are the latest buy to let rates on the market?

There’s more to mortgages than the headline rate. To make sure you’re looking at mortgages that suit your individual circumstances, talk to one of our experts – AND KEEP IT SIMPLE

Try our calculators to see how much you could borrow or what your rent may need to be

Lenders may also impose other restrictions or conditions on applications for a buy-to-let mortgage such as a minimum age, being an existing home owner and/or being resident in the UK. The property will need to be in a condition to be let and there may be restrictions on the number of bedrooms, number of floors or number of units in a block. HMO’s (Houses in Multiple Occupation) also have different rules and have separate criteria to standard residential buy to lets, and may or may not be subject to licencing by the local authority.

Talk to us to arrange an appointment today.

Call us on 1964 545965

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