A Buy to Let mortgage is not surprisingly a mortgage you’d take out on a property that you have bought as an investment, rather than one you plan to live in. No more than five years ago, this was a jolly good excuse for lenders to charge you a higher rate of interest, expect a greater deposit, and tie you in with draconian penalties for changing products.
These days, the market has moved on. Buy to Let mortgages do still cost a little more than live-in mortgages (usually the deposit is still significantly greater), but otherwise the products are quite close overall to their live-in cousins. The thing to remember is that this difference is entirely artificially created by the lenders, and not some uniquely different product. Shop around, and you’ll find Buy to Let mortgages with the same options of fixed, variable, discounted etc.
Around 60% of lenders will entertain Buy to Let propositions; you should also consider a new breed of specialist companies like Landlord Mortgages who specialise in this field, and are perhaps therefore better qualified to judge your circumstances. Another breakthrough is Mortgage Express’ “Let and Buy” product, which is designed for professionals who are moving for work commitments, but keeping an existing property to let out.
