Buy to Let
Buy to let mortgages
A buy to let mortgage is an arrangement by which an investor borrows money from a lender to buy a property. Instead of living in that property, the investor rents it out to private tenants, bringing in an income and adding an asset to their portfolio.
Lenders provide a large number of buy to let products, giving professional landlords and investors a range of options.
Who can get a buy to let mortgage?
In theory, anyone with a deposit to put down can get a buy to let mortgage. However in reality, most lenders won’t offer loans to first time buyers unless they are investing with a person or persons who have previously had a residential mortgage.
Can I rent my property without a buy to let?
If you're buying a property to rent out and are not planning to live there yourself, you’ll need to purchase your property using a buy to let mortgage. If you arrange a residential mortgage and then try to rent your property this could be considered fraud, however, there are circumstances where you can ask the lender for a "consent to let" agreement if you needed to rent out your residential home.
However, if you have already lived in your house for a number of years and are planning to move into a new home and rent out your current property, you can apply to your lender to have your mortgage changed from a residential to a buy to let mortgage.
It’s up to the mortgage provider whether they agree to this change of use or not. If they do agree, most will ask for an administration fee to be paid before the transfer is complete.