Buy-to-Let Mortgages
If you are planning to buy a property to rent out you will need a buy-to-let mortgage. As many existing landlords already know, this market has changed considerably over the last few years. However, there are still mortgages out there.
Buy-to-Let property can be a welcome asset for a landlord with a portfolio of properties or someone looking at investing in their first property.
We can help you find a competitive Buy-to-let mortgage from our comprehensive range of products from a panel of lenders whether you are buying an investment property or remortgaging an existing one.
If you are thinking of buying a property to let, the mortgage is one of the most important considerations. Many banks and building societies offer buy-to-let mortgages, specifically for landlords as you cannot take out a standard residential loan.
Buy-to-let mortgage rates
Buy-to-let mortgage rates vary and are dependent on the risk of the mortgage to the lender as well as the deposit available for an individual to put down. Buy-to-let mortgages rates are often higher than residential rates.
With a buy-to-let loan, mortgage lenders will look at the expected rental income and some may require a minimum earned income too.
You can usually choose between a range of mortgage deals, including fixed rate and tracker loans. Arrangement fees also apply and they can be high.
This is a long term investment which you hope will generate rental income along the way and a profit when you sell the property, but bear in mind that if you need access to some cash a property can take time to sell or re-mortgage. If house prices fall, you might not be able to sell for as much as you had hoped. You would have to make up the difference if the property sold for less than you owe – a risk that increases, the higher the percentage you borrow. If you sell for a profit, you may have to pay capital gains tax. Don’t forget that with a variable rate mortgage, your costs will rise if interest rates go up. This would eat into, or even wipe out, your income and profit.
A mortgage is a loan secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
The Financial Conduct Authority do not regulate most types of Buy-to-Let Mortgages.