What Is a Buy to Let Mortgage?

A Buy to let mortgage is a home loan for a property you purchase to rent out. It is sometimes known as a landlord mortgage, and you can get full details about the products available by speaking to an advisor. You can get a Buy to Let mortgage to rent out as accommodation, for commercial purposes, or as a holiday home.

For a Buy to Let mortgage, you generally need a larger deposit than you would for a residential mortgage (usually around 30% minimum). If you don’t have that level of savings, some lenders will consider taking a charge against another property you own in lieu of a cash deposit.

Mortgage terms are typically on an interest-only basis to keep the monthly repayments cheaper. This means you only pay the capital back when the loan term ends or you sell the property.

You can take out a Buy to Let mortgage as an individual or limited company. It is strongly advised that you speak to a mortgage broker before taking out a Buy to Let mortgage so you are clear about your responsibilities and terms of the deal, and to make sure you get the best possible rate.

At My Mortgage Maker, we help buyers find the best deals on mortgages in Bath, Bristol, and the surrounding areas.