How to buy-to-let mortgages differ from “normal” mortgages?
The main difference from residential mortgages is in terms of affordability criteria, as a Buy To Let lender will be more interested in the rental potential of the property than your personal income. Most will want to be assured that the rental value can match or exceed 125% of the mortgage payment, though this criteria may be slightly different depending on which lender you go with. Most, but not all, require a minimum level of personal income, anything between £10,000 to £25,000 per annum. And you’re right about deposit, almost all Buy to Let lenders currently require a minimum of 25% deposit. Edit: Bud, what you are referring to is a “Let to Buy”, not a Buy to Let, and can only be done on a residential property you already own. Although it is true lenders sometimes do this, subject to affordability.
