Buy to Let

With Buy to let mortgages the lender is often less concerned with the amount of personal income that the borrower has.

Most Buy to let lenders assess the borrowing capacity based on the likely rent that the property will generate.

They will ask the surveyor to provide both a valuation of the properties realistic sale price and rent expected.

They will expect the rental figure to cover the proposed mortgage payment calculated at a notional rate (often 6.00% to 6.75%) by a margin of 125%.

This often means nowadays, that the deposit needed is much higher than the normal minimum 15% actually required by buy to let mortgage schemes.