Buy to let (BTL) mortgages are for private landlords and property investors who'll let a property to tenants rather than live in it themselves. They can be rewarding, but it's important to understand the risks and responsibilities.
How they work
BTL mortgages are assessed largely on the property's rental potential, sometimes regardless of your personal income. They typically need a larger deposit (around 20–30%) and carry higher interest rates. Since April 2016, buying an additional property usually means an extra 3% Stamp Duty.
Your investment objectives
Your goals — immediate rental income or long-term capital growth — shape the property and location you choose. Property markets rise and fall, with no guarantee of price growth, so thorough research matters.
Being a landlord
Owning a rental property brings responsibilities: maintenance, letting agent fees, ground rent, legal insurance and appliance safety checks all need budgeting for.
Choosing a letting agent
A good letting agent is invaluable. Look for agents affiliated with The Association of Residential Letting Agents (ARLA) for added reassurance. We can help point you to reputable agents and manage your investment efficiently.
Important — please note
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Please note that some mortgages, such as commercial buy-to-lets, are not regulated by the FCA.
This article is general guidance, not personal advice. For a recommendation based on your own circumstances, please get in touch.