Advice when you need it
What percentage deposit do you need for a buy-to-let mortgage? Should you already own property? We can provide the answers to all your questions.
If you’re considering buying a property to rent out, Wesleyan Financial Services can help find the right buy-to-let mortgage for you. Our Specialist Mortgage Advisers know what it takes to make your property purchase a success, and will search the market to find the right deal for you.
Always remember your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments.
Please note that most buy-to-let mortgages are not regulated by the Financial Conduct Authority (FCA).
*Wesleyan Financial Services provides broker and advice services. Wesleyan Financial Services is paid a fee by the lender upon completion of the loan. Product fees may be payable to the lender.
Most buy-to-let mortgages are paid on an interest-only basis. This means that landlords only pay back interest, making monthly payments cheaper. When the loan matures (typically after 25 years), the capital will need to be repaid – usually by selling the property.
It's important to remember that buy-to-let mortgages are for those buying property as an investment, and a lender will need to ensure that the amount of monthly rent can cover both mortgage repayments and any other costs that may be incurred.
The application process for a buy-to-let mortgage is similar to that of a residential mortgage, but there are some key differences. For example, you’ll need a larger deposit for a buy-to-let loan, and interest rates are usually higher. This is due to lenders typically viewing tenants as higher risks than owner-occupiers.
You’ll also need to be 21 years or older to apply for this type of mortgage, and if you’re considering a joint application, other applicants will need to be 18 years or older.
Yes – if you are moving and wish to let your existing property, switching from a residential mortgage to a buy-to-let mortgage is quite common. If you wish to do so, you will need consent from your lender. If your current lender refuses, then you can look to remortgage with another lender.
If you have a fixed term mortgage with early repayment charges, switching could result in these being applied.