Buy To Let Mortgages

A minimum deposit of 20% of the purchase price is required. However, you will typically require at least a 25% deposit to access competitive interest rates to make the investment viable.

Not necessarily. There are a number of mortgage lenders that have a No Minimum Income policy. This means that an applicant with no income may still be able to acquire a BTL mortgage offer if the monthly rental yield assessment of the property is suitable for the lender.

Buying to let can be a great financial investment, providing a steady rental income and even benefitting from capital growth. For more information read our blog about whether Buy To Let is a good investment.

There are many differences. Landlords typically apply for interest-only buy to let mortgages to maximise their profit margin and cash flow. Whereas, residential mortgages are often taken on a repayment (capital and interest) basis to ensure that the mortgage is redeemed at the end of the overall term. The way buy to let and residential mortgages are calculated is also different. With buy to let mortgages, lenders will largely base affordability on the monthly rental assessment for the property. With residential mortgages, affordability will be based on many factors such as the applicant’s income, financial commitments, adverse credit position and loan term.

Mortgage lenders typically allow applicants to have a maximum of 10 Buy to Let mortgages in their portfolio but there are a few exceptions that allow more. This criteria may also be different if the Buy to Let mortgages are acquired through a Limited Company instead of on a personal basis.

If you use Boon Brokers for mortgage advice, you will not be charged a broker fee at any stage of the transaction. This is quite unusual in the broking industry - an average mortgage broker fee is between £300.00 - £500.00 according to the Money Helper Service. With Boon Brokers you will make a significant saving straight away. On top of a broker fee, Buy to Let mortgage lenders may charge a booking fee. This is likely to be between £999 - £2,000 depending on the selected mortgage product. Lastly, a valuation fee of up to £500 may be payable at application stage too.