Can you get a Buy to Let mortgage?
To qualify for a Buy to let mortgage you will normally need to:
- Own your own home
- Have a 25% deposit
- Have a projected monthly rental income in excess of the monthly interest on the mortgage
- Be over 25 (depending on the lender)
- Have an income in excess of £25,000 a year (again, depends on the lender)
In addition, many lenders have a maximum number of Buy to Let mortgages customers are allowed at a time and a maximum combined value that can be taken out. Common limits are 3 properties and combined total loan value of £2 million (although this varies from provider to provider).
How much will a Buy to Let mortgage cost?
The main cost of a Buy to Let mortgage is the monthly repayments. These include the interest on the loan and may include repaying a proportion of the capital (depending on your mortgage deal). Many landlords choose interest-only mortgages where the capital is repaid when the mortgage term ends.
The interest rate you pay on your Buy to Let mortgage will usually depend on:
- How much you borrow
- How long you borrow for
- Your loan to value ratio (LTV)
- How much debt you already have
- Your credit rating
Need independent buy to let mortgage advice?
If you are not sure about your options speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464