Can I get a buy-to-let mortgage without a residential mortgage?
You don’t need to have a residential property to apply for a buy-to-let mortgage, and you can apply on your own or with up to three people, providing you’re not part of a company.
What are the requirements for a buy-to-let mortgage?
The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%). Most BTL mortgages are interest-only. This means you pay the interest each month, but not the capital amount. At the end of the mortgage term, you repay the original loan in full.
Can you get a normal mortgage for buy-to-let?
If you plan to rent out your home, you need a buy-to-let mortgage. You can only get a standard residential mortgage if you plan to live in the property yourself. You can sometimes pay a minimum deposit of 20% for a buy-to-let mortgage, although some of the best mortgage rates available require a deposit as high as 40%.
Can I live in my own buy to let property?
Whilst you might get consent to let for a short period on the flat from your residential mortgage lender, it is not possible to live in a property that has a buy to let mortgage on it, so you will need to refinance.
Can I buy a buy to let without owning a property?
The simple answer is yes, but you may be limited when it comes to getting a mortgage. This is key as a large percentage of lenders need you to own your own residential property (possibly for at least six months) before they will offer you a Buy to Let mortgage.
Why are most buy-to-let mortgages interest only?
Many buy-to-let investors will opt for an interest-only mortgage because it is so much cheaper per month, meaning that monthly profits from rent are much higher. The extra money could be invested elsewhere, or put towards renovations, and this could make you more money in the long run if used wisely.
Can I rent out my house without telling my mortgage lender UK?
According to the Council of Mortgage Lenders (now a part of UK Finance) letting a property without the consent of your lender could be considered a breach of the terms and conditions of the mortgage and could entitle the lender to seek immediate repayment of the entire loan.
How do I avoid buy-to-let tax?
7 Tax Saving Strategies For Landlords
- Set up a limited company.
- Extend to reduce.
- Make use of all available tax bands.
- Make sure you are getting the most from your property.
- Don’t be shy with your expenses.
- Consider short-term lets.
- Be savvy when you sell.