Buy-to-let mortgages

Buy-to-Let Mortgages

Although the rules and regulations around buy-to-let mortgages are similar in some ways to a standard residential mortgage, there are important differences:

• Interest rates are generally higher than with a residential mortgage.

• Fees tend to be higher.

• Most are interest-only mortgages, so you don’t pay every month but at the end of the term you repay it in full.

• The deposit is usually 25% of the property value, but can vary between 20-40%.

• Many are not regulated by the Financial Conduct Authority. There are exceptions to this. For example, if you let the property to family member it is called a consumer buy-to-let mortgage and is assessed in the same way as a residential mortgage.