BUY TO LET INVESTMENT

What is a Buy to Let mortgage?
A Buy to Let mortgage is for purchasing a property with the primary intention of renting it out to tenants. These mortgages are assessed differently from standard residential mortgages.

How is a Buy to Let mortgage different from a regular residential mortgage?
Most landlords choose an interest-only mortgage, meaning you only pay back the interest on the loan, not the capital. This allows landlords to maximize profits, build reserves, or save for future property investments.

What is a Let to Buy mortgage?
Let to Buy allows you to convert your current residential home into a rental property and use the equity to buy a new property to live in. This can be a great way to enter property investment without selling your existing home.

How does Let to Buy work in practice?
You rent out your current property and, depending on Loan to Value (LTV) limits, use the equity from your home as a deposit for your new property. Many clients use this approach when moving due to life changes like new relationships or expanding families.

What’s the main difference between Buy to Let and Let to Buy?

• Buy to Let: Purchasing a new property specifically to rent out.

• Let to Buy: Renting out your existing property and often buying a new home to live in.

Do I always need to buy a new home with Let to Buy?
Not always, but most lenders expect it, and it’s what we help clients with on a daily basis.

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority