A "Buy to Let" mortgage is a type of mortgage designed for individuals who want to purchase residential properties with the intention of renting them out to tenants.
If you’re looking for an investment property to rent out, whether on a personal basis or via a limited company, you may need advice on buy-to-let mortgages.
Many buy-to-let landlords now purchase via a limited company due to tax changes introduced in the last couple of years. With that in mind, and considering other aspects of owning a rental property, such as Capital Gains, interest rates, Stamp Duty, and potential early redemption charges, our buy-to-let mortgage advisors are highly experienced and knowledgeable about your buy-to-let mortgage options.
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These mortgages are tailored specifically for property investment and differ from regular residential mortgages in several key ways.
Buy-to-Let mortgages are primarily assessed based on the property's potential rental income rather than the borrower's personal income. Lenders consider whether the rental income will cover the mortgage payments.
Typically, Buy-to-let mortgages require larger initial deposits, often around 25% of the property's value or more.
Interest rates on buy-to-let mortgages may be higher than those for regular residential mortgages.
Lenders have specific eligibility criteria for Buy to Let borrowers, considering factors like the borrower's creditworthiness and the property's potential rental income.
There are tax implications to consider, including income tax on rental income and potential capital gains tax upon selling the property.
Buy-to-let mortgages are a popular choice for those looking to build a property portfolio and generate rental income.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.