Mortgages
Buy-to-let Mortgage Advice
Buy-to-let mortgages are a loan secured against a property that has been purchased with the intention of renting it out.
Our buy-to-let mortgage advice
Lending criteria is based on both the buyer’s circumstances and the rental income generated by the property.
Interest rates and the deposit required for a buy to let mortgage can both be higher compared to a residential mortgage.
Expect to have to find a minimum of a 25% deposit to put down, plus you need to budget paying a higher rate of stamp duty.
Finding a lender with a product and criteria that match your situation can be complex and time consuming.
Consulting a mortgage broker can make the whole process much simpler and save you a lot of time.
Most Buy-to-let Mortgages are not regulated by the Financial Conduct Authority.
Frequently Asked Questions
What is a buy-to-let mortgage?
A buy-to-let mortgage is a loan specifically for purchasing properties that you intend to rent out. It differs from a standard residential mortgage because lenders typically evaluate the potential rental income and the property’s profitability, rather than just your personal income.
Can I use a buy-to-let mortgage to purchase a property for holiday rentals?
Yes, you can use a buy-to-let mortgage to purchase a property intended for holiday rentals, but it’s essential to check with the lender about any specific requirements or restrictions they may have for short-term rental properties.
What deposit is required for a buy-to-let mortgage?
Typically, lenders require a deposit of at least 25% of the property’s value for a buy-to-let mortgage. However, the deposit amount can vary based on the lender and your financial profile.
How do buy-to-let mortgages differ from residential mortgages?
Buy-to-let mortgages usually have different terms compared to residential mortgages. They often require a larger deposit (typically 25% or more), have higher interest rates, and are assessed based on the potential rental income rather than solely your personal financial situation.
What happens if I do not intend to move immediately?
The majority of house moves involve a simultaneous sale and purchase transaction, such that you sell your existing property and buy the new one on the same day.
Some house moves are non-simultaneous, before you commit to this and if you intend to ‘port’ your mortgage as mentioned above, you need to check what the ‘porting’ rules are for your current mortgage lender to ensure that a non-simultaneous house move does not breach mortgage ‘porting’ rules.
Your home may be repossessed if you do not keep up repayments on your mortgage
Genius Mortgage Advice
Why choose us?
We take the time to understand your requirements, find a way forward whatever the circumstances, and then stay the course until your mortgage is offered, and the transaction has completed.
We want to develop relationships with borrowers that last as long as your mortgage term, and are as wide as to include family and friends.