All about Buy to Let Mortgages
Buy to Let, or BTL mortgages are loans specifically for landlords who wish to invest in property and in turn, rent it out. What follows is more information about how Buy to Lets work, who is eligible to get one and some of the potential issues involved.
Can I get a Buy to Let mortgage?
You can get a BTL if you fit the following criteria:
How is a Buy to Let mortgage different?
Just like with a residential mortgage, there is the loan, fees and a maximum amount you can borrow, however with a BTL mortgage:
How much can I borrow for my Buy to Let mortgage?
Put simply, the monthly rent payment you receive from your tenant needs to be higher than your Buy to Let monthly loan payment. This is called the coverage and your lender is likely to want to see at least 125%. Looking on sites like Rightmove and On the Market will give you an idea of what rental prices similar properties in your area are fetching.
Where can I get a Buy to Let mortgage?
This is where we come in! We are independent mortgage advisers who have access to over 155 specialist and mainstream lenders to ensure you get the absolute best loan for your circumstances. Our experienced advisers will take time to understand your needs and circumstances and recommend a mortgage that fits with your budget and long-term plans. The Connect team will take away all the headache of the mortgage process by dealing with the paperwork, lender, solicitor, insurance providers and more. Don’t take our word for it, see what some of clients say about us!
What if your tenants leave or your property needs a major repair and you don’t have any income? It’s a good idea to bank some of the rental income in case of such events. Don’t rely on selling the property to pay off the mortgage, prices go down as well as up. If you do sell your property, you could be liable for Capital Gains Tax. There is a Capital Gains Tax calculator at GOV.UK.
What about tax on a Buy to Let?
If you are a first-time Buy to Let investor, we can provide you with all you need to know about the range of mortgages available. Our free guide helps you to understand how a Buy-to-Let mortgage works and our experienced advisers will take the time to coach you on the lending options available specifically to you.
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