Buy to let mortgages explained.

While buy to let mortgages are similar to residential mortgages, there are some key differences to be aware of. 

• Income assessment
  Buy to let mortgage assessment is primarily based on the rent charged, which is normally 125% of the monthly mortgage payment. With changes due to be introduced to the buy to let mortgage sector after April, some lenders such as Barclays have increased this to 135%.
• Mortgage rates
  Buy to let rates are higher than residential rates. For a low rate offers call 0800 048 8828.

• Mortgage fees
  Buy to let fees are in general quite high. Some lenders may charge up to 3.5% of the mortgage advance, it is therefore important to factor this into your calculations. Shop around and get the advice of an impartial broker.
• Deposits
  It is usual for a minimum 20-25% deposit to be asked for by a lender, which is significantly more than the minimum deposit required for a residential deal at around 5%. For those with a 30 to 40% deposit, lenders will offer their very best rates. Those with a smaller deposit won’t fare quite so well, although rates are currently competitive at all deposit levels.
• Maximum age 
  Unlike with a residential mortgage it may be possible to get a buy to let mortgage way beyond retirement age. Buy to let deals are assessed on rental income and so personal income and retirement age aren’t important factors.

If you would like to discuss your buy to let mortgage options in more detail, call us at Deal Direct for advice. We have helped many investors to buy a rental property.

Note that our highly qualified advisers are regulated to offer mortgage advice only, they cannot offer financial advice as to the suitability of property as an investment, for that type of advice you will need to speak to an IFA.

• Note: Not all mortgages are regulated by the FCA.

For advice and a quote call 0800 048 8828.