BUY TO LET MORTGAGE
Buy-to-let (BTL or Limited Company BTL) Mortgages are used for purchasing or refinancing a property, specifically to rent it out. Unlike standard residential mortgages, these mortgages are assessed based on potential rental income rather than the borrower's income. Generally requiring a larger deposit, they often have higher interest rates.
They are popular among property investors and landlords whether held in individual names or a limited company. The borrower is responsible for ensuring the property is tenanted and maintaining mortgage payments, regardless of rental occupancy. It's a key financial tool for building a property investment portfolio.
WHAT IS A BUY TO LET MORTGAGE?
NO UPFRONT FEES
NO BROKER FEES
Key benefits of Buy To Let Mortgages:
PURPOSE & USE
For investment property purchases
Rents cover mortgage repayments
Long-term income and capital growth
Not for owner-occupied properties
FEATURES & BENEFITS
Interest-only options available
Potential tax deductions
Leverage for property portfolio expansion
Fixed or variable rate choices
CONSIDERATIONS & RISKS
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Higher interest rates than residential mortgages
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Requires larger deposit
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Rent gaps may impact repayments
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Subject to property market fluctuations
Experienced. Trustworthy. Tailored.
Clever Commercial is an award-winning brokerage with over 30 years expertise in providing bespoke property financing solutions. Competitive rates, flexible criteria, and unrivalled service. Build your future - partner with us.
WHY CHOOSE CLEVER COMMERCIAL?
FREQUENTLY ASKED QUESTIONS
What is a Buy To Let Mortgage?
A Buy to Let mortgage is used for purchasing or refinancing a property specifically to rent out. Unlike a standard mortgage, it's assessed based on rental income potential and the investor's financial situation.
Who is eligible for a Buy To Let mortgage?
Generally, applicants need a good credit score, existing property ownership, and a stable income. Lenders also assess based on the property’s potential rental income.
What are the key differences between Buy To Let and Standard Mortgages?
Buy to Let mortgages often require a higher deposit, potentially higher interest rates, and the lending decision is primarily based on projected rental income rather than just the borrower's income.
Can I convert my existing mortgage to a Buy To Let?
Yes, but you must obtain consent from your current mortgage lender. They will reassess your financial situation and may change the terms of your loan or suggest a new Buy to Let mortgage product.