Buy-to-let is a British phrase referring to the purchase of a property specifically to let out that is to rent it out. A buy to let mortgage is a mortgage specifically designed for this purpose. Buy-to-let mortgage is a mortgage arrangement in which an investor borrows money to purchase property in the private rented sector in order to let it out to tenants. Lenders calculate how much they are willing to lend using a different formula than for an owner-occupied property. They tend to look at the expected monthly rental income to determine the maximum loan available. Depending on the lender, borrowers might also be allowed to include their own personal income in the calculation of the maximum amount that they can borrow. First-time landlords might also be required to have a separate annual income of at least £25,000. For an owner-occupied property, the calculation is typically a multiple of the owner’s annual income.
Whether you are looking to complete your first buy-to-let purchase, or already maintaining a portfolio of properties, we know every penny counts when it comes to making a profit. Simply Mortgage Place Ltd will search the whole of market to find you the best Buy to Let mortgage deal for your circumstances.