Buy-to-Let
All you need to know
Buy-to-let (BTL) mortgages are for landlords who buy property to rent it out. The rules around buy-to-let mortgages are similar to those around regular mortgages, but there are some key differences.
Who can get a buy-to-let mortgage?
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You want to invest in houses or flats
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You can afford to take a risk: investing in property is risk, so you shouldn't take out a BTL mortgage if you can't afford to take that risk.
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You already own your own home: You'll struggle to get a buy-to-let mortgage if you don't already.
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You have a good credit record and aren't stretched to much on your other borrowings otherwise you might struggle to get a lender to approve your Buy-to- Let mortgage.
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Your under a certain 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;
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The arrangement fees tend to be higher
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Interest rates on buy-to-let mortgages are sometimes higher
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The minimum deposit for a buy-to-let mortgage is 25% of the property value
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Most BTL mortgages are interest-only. this means you don't pay anything off the loan, but at the end of the mortgage term you can repay the capital in full.
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The maximum you can borrow is linked to the amount of rental income you expect to receive
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You’ll be provided with all the information you need to allow you to make an informed decision about your next step.
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