Although the tax treatment of rental income and Stamp Duty has changed over recent years, many investors still turn to property when seeking rental yield or capital growth and there is no denying that historically, property has often proved to be a good investment. A buy-to-let mortgage is a loan for investors purchasing a residential […]
Although the tax treatment of rental income and Stamp Duty has changed over recent years, many investors still turn to property when seeking rental yield or capital growth and there is no denying that historically, property has often proved to be a good investment.
A buy-to-let mortgage is a loan for investors purchasing a residential property that is intended to be let to tenants rather than to be lived in by the borrower. A larger deposit will be required than for a standard mortgage and is typically around 25%, although better deals will be available to those who can put down as much as 40% of the purchase price.
Most borrowers take out an interest-only mortgage for their chosen property. This means that you only pay the interest on the loan as it accrues every month, generally from the rental income you receive. The capital debt, which is the full amount of the mortgage, is paid at the end of an agreed term. When assessing your eligibility for a buy-to-let mortgage, lenders will consider the potential rental income the property will generate when deciding whether to grant the loan.
If you’re an existing landlord or looking to become one, we can advise you on the right buy-to let mortgage for your needs.
| Your property may be repossessed if you do not keep up repayments on your mortgage. |
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
