What is a buy-to-let mortgage?

A buy to let mortgage is a mortgage for property that will be rented out as an investment rather than a property you will live in.

Because of this most buy-to-let (BTL) mortgages are arranged on an interest only basis whereby the mortgage only covers the interest on the loan as it accrues every month. The amount borrowed stays the same throughout the term and needs to be repaid when the mortgage ends (unless you choose to make extra payments). You could do this by selling the property, or taking out another mortgage.

A buy-to-let mortgage normally requires a larger deposit than a residential mortgage and you will have to pay more stamp duty for a second property that is not your main home.

We are able to source the right buy to let mortgage for you, whether this is part of an expanding portfolio or your first foray into owning a rental property.

Some lenders also are able to ‘top slice’ your income to assist with BTL affordability, this takes into account a landlord’s personal income and includes it in affordability assessments. You could potentially then use pension or salary income to boost your lending capacity. Only a handful of lenders currently adopt this approach so get in contact if you think this might be right for you.