What is a buy-to-let mortgage?

Whether you’re becoming a landlord for the first time or you’re looking to expand an existing portfolio you will need to take out a buy to let mortgage rather than a standard residential mortgage. A buy to let mortgage is specifically for people who are buying a property to rent out to a tenant or tenants.

How do buy to let mortgages differ from residential mortgages?

  • Interest rates are usually higher on buy to let mortgages compared to residential
  • Whereas for residential mortgages your deposit could be as little as 5% of the property value you will have to pay a minimum of 15% for a buy to let mortgage.
  • Unlike a standard mortgage, where the amount you can borrow is linked to your income, with a buy to let mortgage, the lender will instead look at how much rent you could make from the property on which the mortgage is secured.

WE CAN HELP YOU ARRANGE A BESPOKE BUY TO LET SOLUTION THAT IS TAILORED TO YOU. CALL OUR EXPERT TEAM TODAY TO FIND OUT MORE.

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