Buy to Let Mortgage Guide
Buy to let mortgages are designed for rental properties, where the property owner is not the occupier. The UK buy-to-let mortgage market has grown fast - many mortgage lenders offer specifically designed buy-to-let mortgages at competitive rates.
Lenders usually consider that they are taking more of a chance with a buy-to-let mortgage, so you will need to have a good deposit, typically 25% of the purchase price of the property you are purchasing, but an even larger deposit will probably attract a lower interest rates
Each mortgage lender will have a method in place to calculate the amount you can borrow. Typically the lender will look for the expected annual rental income to be at least 125% of the annual mortgage payments (based on interest only). The lender will also want to be assured that the property you are proposing to buy is a good long-term investment and may also charge higher interest rates and arrangement fees for a buy to let mortgage than they would with a residential mortgage.