Buy To Let

Only properties that are going to be let out can obtain a ‘Buy To Let’ mortgage, hence you are not permitted to live in a property which has a Buy To Let mortgage.

Buy To Let mortgages are available on either an Interest Only or Capital Repayment basis.  The amount that can be borrowed depends on the rental income received instead of the borrowers overall income.

It’s important you are aware lenders vary in their calculations, however typically, the rental income should equal 125% of the interest only mortgage payments at an assumed rate of 5%.