Buy-to-let mortgages (BTL) are provided for property purchase for investment in the private rental sector. They are assessed as though they are ones for residential occupation. Assessment of borrower affordability can be based on projected rental income and/or earnings dependent on the lender’s individual policy.
Buy to Let mortgages are designed to help people like you to invest in property and then rent it out without being penalised by mortgage surcharges or paying commercial rates of interest. Mortgage lenders in Buy to Let schemes take account of your rental income likely to be achieved from a property
Due to current market trends, most Lenders are looking for investors to put down a larger deposit than in the past, maybe up to 25% of the purchase price.
The FSA do not regulate some forms of mortgage.