Buy to let or BTL mortgages are for those who aren’t living in the property as their primary residence but are renting it out to provide investment income.
There are only a limited number of lenders operating in this sector & those that do will typically lend to a maximum of 80% of the property value (80% LTV) with the remainder coming from the borrower in the form of their deposit.
So long as the potential rental income exceeds the mortgage payment by 25% (e.g. £500pcm rental on a property with a £400 mortgage repayment) then the lenders generally regard it as self-funding rather than basing the assessment on client income & expenditure. Although lenders always reserve the right ultimately to take a closer look where perhaps they may feel clients are over committed.
If you’re looking to rent or sublet the property to a family member then few mortgage lenders will help. As you’d expect though, we’ve been able to negotiate with a leading lender to cover just this case of family buy to let mortgages.
Repayment terms can be on a repayment or interest only basis
As ever, we work hard to match your application with the best possible rate available. A decision in principle can often be made within 10 minutes of initial application. Fill in our quick quote application form.