Alexander Hall Mortgages Buy-to-Let Guide to Buy to Let Mortgages

Buy to Let Mortgages

A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).

More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.

Buy to let mortgage tools for landlords

How much can I borrow for a buy to let mortgage?

What is the minimum rent I can charge?

Best Buy to Let mortgage deals and rates

There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer buy to let mortgage deals to fixed and variable rate options.

In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.

Are you ready for a Buy-to-Let mortgage?

When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:

Buy-to-Let deposit

You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage - it will likely be 15-25% of the property's value.

Rental income

Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage - for example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments.

Investment potential

Your buy to let mortgage lender will also want to establish whether the property you are buying is a good long-term investment.

Although Alexander Hall is regulated by FCA, most buy-to-let mortgages are not regulated by the FCA.

Call 08000 38 37 36 for more information about buy-to-let mortgages.