Buy to let mortgages

Buy-to-let mortgages are specifically designed for investors who want to buy a property to rent out. Buy-to-let mortgages are usually more expensive than normal mortgages, but they could help you become a property investor. If you don’t own your own home outright, or with a mortgage, finding a buy-to-let mortgage will be hard.

Most buy-to-let mortgages are interest only meaning that you won’t be paying any off the mortgage itself and you’ll have to pay the outstanding capital at the end of the mortgage term. The other key differences from normal mortgages include:

  • Interest rates tend to be higher
  • The minimum deposit for a buy-to-let mortgage is usually a quarter (25%) of the property’s value
  • Professional fees are often higher

However, any rental income you earn from a property can be offset for tax purposes against the interest only mortgage payment, so owning buy-to-let properties can be a tax efficient investment product.

In March 2016, buy-to-let mortgages will come under greater scrutiny. New affordability tests will be implemented and mean that older home-owners may not be able to take out a buy-to-let mortgage as lenders often require borrowers to repay the whole loan back before they retire.

If you would like further advice and guidance regarding buy-to-let mortgages, please call one of our team who will be able to help you.

Ask us about Mortgage Plus

Take the stress out of your property purchase with our innovative Mortgage Plus service – we can fast-track your mortgage application, negotiate the purchase price and deal with estate agents, lenders and solicitors on your behalf.

“I have recommended KMA to all my friends and if you’re buying a house or remortgaging I would look no further – the team are friendly, helpful people who have your best interests at heart every step of the way.”

Dawn Kenyon, A MORTGAGE & REMORTGAGE CUSTOMER

“Sharon and her team have been a great help while trying to buy my first property. They talked me through the process step by step and sent me weekly updates on the progress of my purchase. I am confident that I have a great deal on my mortgage.”

Gina Rowland, A MORTGAGE CUSTOMER

“I cannot thank the team at Key Mortgage Advice enough. They provided an excellent service and were able to arrange our mortgage within a very tight, three week deadline. I would highly recommend them.”

Matthew Agrimi, A MORTGAGE CUSTOMER

“After a chat about my goals, Sharon put forward my case to a number of lenders and within a couple of days a local business manager from Barclays offered to support my application. I cannot fault the team at KMA, I have used and recommended them for nearly 10 years now and they are always my first choice.”

Jamie Goodlass, A COMMERCIAL MORTGAGE CUSTOMER

“Our clients ask us for advice on mortgages for both domestic and commercial premises and we have no hesitation in recommending them to Key Mortgage Advice. The team has a breadth of knowledge which they skilfully impart to our client base, who are always happy with the advice they receive.”

Champion Accountants, A COMMERCIAL PARTNER