But to let
A buy to let mortgage is a loan secured on a property that you will let out. You can rent the property to a family, to individuals or to a company.
When compared to a main residence mortgage you will find that the mortgage rates and fees are typically higher on a buy to let mortgage. A loan amount for a buy to let mortgage is based both your income and also on the rental income the property will achieve.
As a whole of market mortgage broker, we have access to a huge range of products and each lender has their own varying criteria. As a rule the following lending terms apply for buy to let mortgages:
Maximum loan to value up to 80%
Interest only or capital and interest
Loan based on the subject property rental income and/or your personal income
Fixed, tracker and variable rate options
The rate of stamp duty for buy to let is higher than for your main residence. An increase of 3% is applied to each banding of stamp duty. Please refer to the table below:
The Financial Conduct Authority does not regulate some forms of buy-to-let. Your home may be repossessed if you do not keep up repayments on your mortgage.
Let to buy
Let-To-Buy mortgages allow the borrower to remortgage their existing property in order to raise funds towards the purchase of a new home.
The existing property is then rented to tenants resulting in a rental income which can be used to offset/reduce the cost of the mortgage on the new home.
When is a Let-To-Buy appropriate?
Let-To-Buy mortgages are used mainly by people needing to quickly release funds from their existing homes in order to proceed with the purchase of a new residence. For example when people to need to relocate for work but may be returning to the area, and their home, in the future.
Let-To-Buy mortgages can also be the ideal product for people wanting to take the first steps in building a property portfolio for investment.
Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
