Helping you build your portfolio
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.
• 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.
• Most BTL mortgage lending is not regulated by the Financial Conduct Authority (FCA). 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.