Understanding Buy-to-Let Mortgages
Buy-to-let mortgages are specifically designed for individuals looking to invest in property that
they intend to rent out. The amount you can borrow is often determined by the rental income the
property can generate, as well as your personal income and existing financial commitments.
Key Considerations
- Rental Income: The expected rental income is a critical factor in determining
the maximum mortgage amount. Lenders usually require that the rental income covers 125%-145% of
the mortgage payments.
- Interest Rates: Interest rates on buy-to-let mortgages are typically higher
than residential mortgages. Be sure to compare rates and understand how changes might impact
your repayments.
- Personal Income: While rental income is a primary consideration, some lenders
also look at your personal income to assess affordability.