Buy to Let...

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Buy To Let mortgages

Buy-to-let (BTL) mortgages are for landlords who want to buy property to rent it out. A landlord can have 1 buy-to-let or can have many.

The rules around buy-to-let mortgages are very similar to those around regular mortgages, but there are some key differences that you need to know.

Your property may be repossessed if you do not keep up repayments on your mortgage.

You can get a buy-to-let mortgage under the following circumstances:

  • You can afford to take and understand the risks of investing in property.
    You want to invest in houses or flats.
  • You already own your own home, whether outright or with an outstanding mortgage.
  • You have good credit history and aren’t over committed on your outgoings, for example, credit cards.
  • You earn £25,000+ a year. If you earn less than this you might struggle to get a lender to approve your buy-to-let mortgage
  • You’re below the maximum age Lenders have upper age limits, typically between 70 or 75. This is the oldest you can be when the mortgage ends not when it starts.

Buy-to-let mortgages are a lot like ordinary mortgages, but with some key differences:

• The fees tend to be considerably higher.
• The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%).
• buy-to-let mortgages interest rate are generally higher.
• BTL mortgages are available on a repayment basis however most are interest-only. This means you pay the interest each month, but not the capital amount. At the end of the mortgage term, you repay the original loan in full.
•The Financial Conduct Authority does not regulate some forms of Buy to Lets. There are exceptions, for example, if you wish to let the property to a close family member (e.g. spouse, civil partner, child, grandparent, parent or sibling). These are often referred to as a consumer buy to let mortgages and are assessed according to the same strict affordability rules as a residential mortgage.

Contact us to help you secure your buy-to-let mortgage 01423 561060 or info@sj-fs.co.uk. We will gain the most competitive rate available for your circumstances and work as your trusted adviser.