Mortgage Services

Introduction to Buy-to-Let Mortgages

If you are purchasing a buy-to-let investment property and require a mortgage, you will need a specialist buy-to-let mortgage. Standard residential mortgages do not allow you to rent out and make a profit from your property. Buy-to-let mortgages generally require a higher deposit (typically 25%) and usually have higher interest rates, but most are interest-only, making repayments more affordable. Most lenders require that the rental income covers 125-145% of your monthly mortgage payments.

Buy-to-Let Mortgage Lending Criteria

Lenders typically require:

• Minimum deposit of 25% of the property value
• Rental income to cover 125-145% of mortgage payments
• Good credit history and stable income
• Property to be in good condition and suitable for letting

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