Buy-To-Let

What is a Buy-to-Let mortgage?

A buy to let mortgage is a loan for purchasing or refinancing residential properties which are let to tenants rather than lived in by the borrower. Classed as a business transaction, rates and fees are typically higher than those you would find with a standard residential mortgage. You will need a larger deposit too, the maximum you can borrow is 85% loan to value although there are many more rates available at 75% Loan-to-Value (LTV).

What are the borrowing criteria?

  • Rent to Interest cover 145% for individuals and 125% for limited company applications.

  • The majority of lenders require a minimum salary of £25,000 per annum, although some lenders will not have a minimum salary requirement.

  • Available deposit of 15-25% - with 25% being more realistic.

  • Many lenders impose a maximum age limit of 75 on the maturity of the loan for individual applicants. Some specialist lenders offer a

    maximum age limit of 85.

  • For limited company applicants, there is no upper age limit.

What can a buy-to-let mortgage be used for?

  • Purchase of a new Buy-to-Let Property.

  • Raising capital against an existing property to purchase further properties.

  • Release equity for other requirements.