AT A GLANCE
What is a buy-to-let mortgage?
A buy-to-let mortgage is generally used to finance a property intended for letting to tenants. Lender criteria, rental income, ownership structure and tax need consideration. Regulatory treatment varies; many business buy-to-let mortgages are outside FCA regulation.
Whether you are becoming a landlord for the first time or reviewing an existing property, rental borrowing needs its own financial plan. Lenders consider the property and rental income alongside other criteria. It is equally useful to think about maintenance, empty periods and how the loan will eventually be repaid.
What this can help you explore
- Understand deposit and rental assessment requirements.
- Review borrowing for a purchase or existing rental property.
- Consider cash flow, ownership and repayment plans together.
Things to consider
Rental income and property values can fall; allow for costs and periods without a tenant.
Your property may be repossessed if you do not keep up repayments. Regulatory protection varies by arrangement.
Your questions, answered.
Speak to your lender before letting it. You may need consent to let or a different mortgage, depending on the circumstances and lender terms.
Regular payments cover interest, while the borrowed capital remains due. You need a credible plan to repay it at the end of the term.
Who provides this service?
The provider, applicable permissions, advice scope and terms must be confirmed before you proceed. Regulatory treatment and protections vary by service and product.
Regulatory information