Buy to Let Mortgage

A Buy to Let mortgage Buy to let mortgage is for the purchase of properties to be let and work in the same way as standard mortgages although the interest rates and arrangements can be higher than a residential mortgage.

The size of a buy to let mortgage loan available is typically a maximum of 75% of the property value with some lenders offering 80% to experienced landlords. Unlike residential mortgage the amount you can borrow is not linked to your income, although a minimum level of income may be required, but is linked to the rental income that will be received as stated by a surveyor. The rental income usually has to equate to between 25% to 45% higher than the monthly mortgage payments calculated on an interest only basis.

If you are looking to purchase a buy to let property or remortgage an existing property or portfolio then get in touch and we can discuss the rates and lenders available.

You will also have to factor in to your calculations the legal fees for the purchase and the Land & Buildings Transaction Tax (LBTT) payable on the purchase. You will also have the Additional Dwelling Supplement (ADS) of currently 4% on the purchase to pay in  addition to the standard LBTT.

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

You should discuss the tax implications of an investment property / buy to lets with your accountant.

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