• 01822 615502

Buy-to-Let Mortgages

A Buy-to-Let mortgage is a secured loan you take out on a property that you intend to let out to tenants. The borrowing is assessed on the rental income to be generated from the property and not on the applicants income, as with a residential mortgage. Normally the lenders will expect the rent to cover the mortgage by approx 125%.

As this type of mortgage is classed as higher risk the minimum deposits are much higher than that of a residential mortgage. Typically, in the current climate, the minimum deposit would be 15%, but in order to obtain a competitive rate most lenders are asking for a 25% deposit.

Due to the potential increase in house prices, and the prospect of a regular income, the Buy-to-Let proposition has become a very popular way of investing money long term for pension planning or inheritance. However, it still has its drawbacks:

  • There is no guarantee that the property will always have a tenant, so provisions would need to be made to ensure funds are available to pay the mortgage
  • The property may need maintenance and repairs, pre-rental and during, which could be costly
  • There are other costs that could be incurred such as lettings agents fees, license fees and insurance
  • Additional Tax implications such as Capital Gains Tax – please consult a tax expert for further details
  • Damage caused by tenants

For Buy to Let property you also need to ensure that you have specialist Buildings Insurance. We can arrange this for you and have access to some very competitive premiums.

If you are planning on buying an investment property, looking to let out your current home or have already done so, please get in touch on 01822 615 502 or use the Contact Us facility above.

Please note the Financial Conduct Authority does not regulate some forms of Buy-to-Let mortgages.


Like us on facebook

23 hours ago

Dartmoor Financial

Another lovely couple with greater freedom in retirement due to a lifetime mortgage #pizzaoven #microbrewery

"Hi Stuart

Thanks for all your help and support, it made it simple. I have paid your invoice thank you.If you fancy coming over with the family for a pizza give me 24hrs notice so I can make the dough, you will be most welcome.

Kind Regards

... See MoreSee Less

View on Facebook

5 days ago

Dartmoor Financial

Considering giving a gift of money early? Gill and Jim did. Give us a call to discuss your options :)Would giving their loved ones some of their inheritance now help your clients? Our real life customers, Gill and Jim, describe how it felt to see their grand... ... See MoreSee Less

View on Facebook

1 week ago

Dartmoor Financial

The turn out here on a work day! Great job everyone 👍 ... See MoreSee Less

View on Facebook

Contact us on 01822 615502