Buy to let mortgages - what do you need to know?

• 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.
• Income assessment
  Buy to let mortgage assessment is primarily based on the rent charged, which is normally 125% of the monthly mortgage payment. Since changes were introduced to the buy to let mortgage sector in April, some lenders such as Barclays increased this to 135%.

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.

• Please note: 

  Buy to let mortgage applications from:

  • applicants whose intention is to benefit from house price growth
  • applicants whose intention is to benefit from rental income
  • applicants who are letting to buy

  will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.

  Call us today on 0800 048 8828 for a buy to let deal.