This is a mortgage for a landlord who wants to buy a property to rent out. Buy to let mortgages generally have higher rates & fees.

The borrowing amount is assessed on the rental income rather than personal income.

The max borrowing is typically 75% loan to value although there are lenders that consider 80%.

Interest only is the preferred repayment method although capital & interest is also available.

As a landlord you will have responsibilities to your tenants eg ensuring the property is safe & habitable, addressing property maintenance in a timely manner, following eviction laws, giving tenant advance notice before raising rent, notifying a tenant before entering the property (these are just a few).

This is a mortgage for a landlord who wants to buy a property to rent out. Buy to let mortgages generally have higher rates & fees.

The borrowing amount is assessed on the rental income rather than personal income.

The max borrowing is typically 75% loan to value although there are lenders that consider 80%.

Interest only is the preferred repayment method although capital & interest is also available.

As a landlord you will have responsibilities to your tenants eg ensuring the property is safe & habitable, addressing property maintenance in a timely manner, following eviction laws, giving tenant advance notice before raising rent, notifying a tenant before entering the property (these are just a few).

As already mentioned typically rates & fees are higher than a residential mortgage.

If you already own a property, you will be subject to 2^nd property land tax/stamp duty. This differs depending on where you buy the property, please refer to the relevant government website.

You will be subject to income tax on rental income & capital gains tax when you sell, subject to allowances.

There will be property running costs eg property management fees, maintenance costs, buildings insurance.

This is assessed by the rental income rather than personnel income.

Typically, a lender will require your rental income to be between 125% and 145% of your monthly mortgage interest payments based on a stressed interest rate (ie not the rate you are actually paying)

Generally lower stress rates are applied if you take a 5 year fixed rate as opposed to a 2 year.

Basic tax rate payers are normally offered a rental coverage of 125% and higher rate 145%.

The following occupancy buy to let types are considered to qualify for a mortgage:

• Sole occupancy e.g an individual or family with a short hold tenancy agreement.
• HMO – (house of multiple occupancy) a room is let to different individuals either on 1 tenancy agreement or individual.
• Student lets – similar to a HMO but specifically for students.
• Holiday lets – rental income is based on seasonality rental income. Very few lenders offer this type of mortgage.
• Corporate let – A property that is let to a business’s employees.
• Multi-freehold unit – A property split into individual flats held on 1 lease.

Yes you can. Rather than sell your current home or properties, you could let them out on a monthly basis and release equity to act as a deposit for a new onward purchase. Contact our team for more information on this.

Some lenders will not consider a mortgage for an individual who has no letting experience, but we will support you finding a lender that will consider a mortgage saving you time.

A portfolio landlord is typically someone that has four or more buy to let properties already in their portfolio.

Lenders will assess their whole portfolio in conjunction with the new mortgage proposition.

With changes some years ago in the way buy to let income is assessed for tax purposes these mortgage types are growing as they can be more tax efficient.

There are advantages & disadvantages, although there can be tax advantages the interest rates & set up costs will be higher. We can provide you with the relevant information & costs, but it is always wise to speak with an accountant who can advice if this is right for you.