Key Buy to Let Info
Buying a rental property for the first time can be overwhelming with its financial responsibilities and legal obligations. Beechwood Mortgages can simplify the process and help you understand key differences among lenders and mortgages. Here are some important points to consider:
- Deposit Requirements: BTL mortgages usually need a larger deposit, often around 25% or more of the property's value.
- Rental Income Assessment: Lenders usually check that the expected rent covers the mortgage payments.
- Interest Rates: BTL rates are generally higher than residential mortgages and are often offered as interest-only or fixed-rate deals.
- Tax Considerations: Rental income is taxable, and recent changes to mortgage interest tax relief make planning essential.
- Types of BTL Mortgages:
- Standard Buy-to-Let: For individual landlords renting one or multiple properties.
- Limited Company/SPV Mortgages: Properties purchased under a company, ideal for portfolio landlords.