Buy-To-Let Mortgages
If you’re looking to invest in property and rent it out for profit, a buy-to-let mortgage is designed specifically for you. This type of mortgage allows you to purchase a property with the intention of renting it out, whether to families, individuals, or even businesses. At Riches F.S., we can facilitate BTL mortgages in both Ltd company name or personal name.
Unlike residential mortgages, buy-to-let loans typically come with higher interest rates and fees. Your eligibility for a buy-to-let mortgage is based not only on your income but also on the rental income the property is expected to generate. If you already own a residential property and want to turn it into a rental, you may be able to switch to a buy-to-let mortgage with your current lender or remortgage to a new buy-to-let deal. Whatever your situation, our expert advisers are here to guide you through the process and find the right solution for your investment.
Frequently Asked Questions
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Buy-to-let mortgages usually require a larger deposit than residential mortgages, typically between 20% and 40% of the property’s value. The exact amount depends on the lender’s criteria and the property’s expected rental income.
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A buy-to-let mortgage is specifically for purchasing property you intend to rent out rather than live in. Unlike residential mortgages, they typically have higher deposit requirements and slightly higher interest rates and are often arranged on an interest-only basis, where you pay only the interest during the term and the loan balance at the end.
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To qualify for a buy-to-let mortgage, lenders generally expect you to own your own home or have a history of managing a mortgage. While first-time buyers may still be eligible, the criteria may be stricter. Lenders may also consider your income, age, and expected rental yield.
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Yes, there are several costs to account for, including a higher rate of stamp duty for buy-to-let properties, property maintenance expenses, landlord insurance, and letting agent fees if you plan to use one. We can help you budget for these costs when planning your purchase.
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