Buy to Let Mortgages
Buy To Let Mortgages
Buy to Let mortgages (BTL) are very similar to standard residential mortgages, except they are secured on an investment property rather than one you live in yourself.
With many changes to legislation and lender requirements, the BTL market has become increasingly complicated and difficult for new and experienced Landlords.
Having worked as a National Landlord Association representative, I always keep up to date with the changes in the sector, and as an Investor myself it’s in my best interests to stay informed on the mortgage market.
Below are the various types of Buy to Let Mortgages you might need;
This is the kind of mortgage people with usually less than 4 properties will need. The tenancy will usually be a 6 or 12 month Assured Shorthold Tenancy and will be to just one person or group of people.
This is for more experienced Landlords who have built up a portfolio of properties already. There are some slight differences between Portfolio and Non-Portfolio BTL, but there isn’t anything particularly onerous to worry about. The same rules apply on who the tenants can be and how long the tenancies can last.
If you intend to rent the property on a room by room basis, often done to achieve a higher monthly rental income, then you will need a HMO mortgage. This will allow you to provide individuals with their own tenancies, instead of needing to find 6 friends who all happen to want to live together.
The number of rooms will dictate the type of HMO mortgage you need, and the type of tenants you are targeting will also have an impact. This is a specialist area of Mortgages, but one that I have a lot of experience with don’t worry.
Holiday Lets / AirBNB / Short-term Rental
If you plan to rent your property out on a nightly or weekly basis, effectively becoming your very own little hotel, then you’ll find most mortgages will not be suitable for this. You’ll need a very specific type of mortgage, which is surprisingly difficult for most brokers to find. Fortunately, you’ve just met me.