Buy to Let

A Buy-To-Let mortgage is taken out with the sole intention of renting the property to a tenant or multiple tenants, rather than owner occupation. Although it can generate a regular income stream it can be riskier and more complicated so needs to be done correctly.

There are 3 main differences in buy-to-let mortgages:

Rent Potential – the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income from employment. In some cases your employment income is not even considered.

Interest Rate – buy-to-let mortgages have slightly higher interest rates.

Larger Deposit - typically a minimum of 20% or 25% of the property's value is required as a deposit.

Becoming a private landlord should not be seen as an easy way of making money, although with due diligence and proper advice, a property let to tenants could reap considerable financial rewards over time.