Buy To Lets
A buy-to-let mortgage is a mortgage specifically for people who buy property as an investment, rather than as a place to live. If you plan to rent out a new property, most lenders will prefer you not to finance your purchase with a standard residential mortgage.
A buy to let can be taken out in personal names or with a specially established Limited Company. Professional advice should always be taken when deciding this.
Characteristics of Buy to Let include:
- Loan to values typically 60 – 85% of the property values
- Typically more expensive than a residential mortgage
- Interest-only or capital repayment options available
- Lenders expect rental income to comfortably cover the mortgage repayment with excess for voids and maintenance
- Fixed and variable rates available