Privately owned rental properties also known as ‘Personal Buy to lets’. A Personal Buy to let is a type of mortgage specifically for properties that are owned or purchased by you with the intention of renting them out.
What is a Buy to let mortgage?
They’re often set up on an interest-only basis, which means you only make monthly interest payments each month. The outstanding loan balance – i.e. the amount you borrow – doesn’t reduce and is paid back at the end of the mortgage term via a suitable repayment vehicle, usually the sale of the property.
If you rent out a property on which you only have a residential mortgage, you’ll be in breach of your mortgage agreement which could put your property at risk of repossession. To rent out your property without breaching your mortgage agreement you’d have to either obtain consent to let from your existing lender or switch to a buy-to-let product.
Why Is Finding the Right Buy-to-Let Deal Essential?
Rental properties are popular investments because they can be very successful at delivering a profit. It’s essential you have the right mortgage if you want to make the most of this kind of financial venture – otherwise what’s the point? No one wants a subpar investment.
We Top Rated Advisers who specialise in these types of mortgages and with our leading tech we are best placed to advise you and find a mortgage that matches your property needs. LOUPE has access to the whole of market, and we’re experienced in finding the most suitable mortgage product for less conventional situations.
FAQs
Which mortgage is right for me?
This will depend on whether you are buying for long term property growth or to maximise your income. Our BTL Top Rated Adviser’s will show you.
Can I capital raise remortgage on my BTL property?
Yes, however it will be subject to affordability checks (rental income) and you must have the available equity in the property. There are lenders that can provide the funds prior to finding the new property.
Can I rent out a property with a residential mortgage?
Unfortunately, not. You will need a BTL mortgage if you intend to let the property however, if you are fixed into your mortgage and wish to let it out you can request a ‘Consent to Let’ from your mortgage provider and they may grant you permission to let the property with your residential mortgage until your next remortgage. The lower your LTV is the more likely a lender is to agree this.
How much deposit do I need for a BTL property?
Although you only need a 20% deposit, we recommend that you have a minimum of 25% deposit as interest rates will improve significantly by simply increasing your deposit by 5%.
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