UK Buy to Let Mortgage

A UK Buy to Let Mortgage is provided to purchase a rental property as a business investment in the private rental sector. With a UK buy to let mortgage you can typically borrow up to 80% of the property value, depending on your circumstances. You are assessed as though you are the person occupying the dwelling. The mortgage assessment can either be based on projected rental income or your earnings, depending on the lender’s individual policy. Where the assessment is based on rent received, most lenders would expect rental income to be at least 25% higher than the buy to let mortgage repayments.

Benefits of a UK Buy to Let Mortgage

A UK Buy to Let Mortgage allows you to increase your net asset value both via income from rent and any rise in the value of the rental property or properties you own, providing you do your due diligence and treat purchases as a business investment.

Risks of a UK Buy to Let Mortgage

There is a right time and a wrong time to purchase a buy to let business investment. If you purchase at the top of the market, your property may lose value.

Rental yields may fall if the area you purchase in has a glut of rental properties.

Your rental income must be able to cover the costs of the UK Buy to Let Mortgage, the costs of maintaining the property, the costs of a management agent (if you are not doing this yourself), as well as income tax which you may be subject to, otherwise you will be making a loss.

For further advice and to talk to a mortgage adviser about arranging a UK Buy to Let Mortgage just click on the enquiry button below, fill in brief details, and an adviser will call you within the next 24 hours.