Mortgages
Buy To Let Mortgages
A buy to let mortgage (BTL) is for people who will be renting the property out to a third party and will therefore be the landlord for those tenants.
Purchasing a buy to let property can sometimes be complex which is why our team of specialist advisors at Cornerstone Mortgages & Finance are on hand to help secure the most suitable deal for your specific needs by sourcing the whole of the market. The application process is very similar to that off a residential mortgage however the key difference is how lenders determine the maximum loan available.
For a residential mortgage this is calculated by taking into account factors such as the applicants income along with their current credit commitments where as for a buy to let mortgage, the maximum loan is determined by the value of the property and the expected rental income you will get from the property. This is why applicants with little or no income can still qualify for a buy to let mortgage with some lenders.
FAQ’s
Who can apply for a BTL mortgage?
You can be a first time buyer, a home owner or an experienced landlord, due to our ability to source the whole of the market, we have specialist lenders who fit all circumstances.
How much deposit do I need?
With most lenders, it is common for them to require a minimum of 25% deposit however there are specialist lenders on the market who can consider lending with as little as 15% deposit. Do be prepared for the interest rates to be significantly higher with less than 25% deposit.
What costs should I consider when purchasing a buy to let property?
It is important that you factor in the different costs associated with purchasing a buy to let property. The main initial cost you will need to factor in apart from your deposit will be the additional stamp duty you will have to pay. Our team of experts at Cornerstone Mortgages & Finance will be able to provide you with a detailed breakdown of what costs to expect. Other costs will include, surveys, mortgage fees and solicitors costs.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Some forms of Buy to Let advice are not regulated by the Financial Conduct Authority.