What is a buy to let mortgage?
A buy to let mortgage allows you to purchase a property to rent out rather than live in. If you’re considering an investment property, buy to let mortgages in Beverley could be an option.
Lenders assess applications based on the expected rental income, not just personal earnings. Because these mortgages are designed for investment purposes, they often require a larger deposit, usually at least 25% of the property’s value.
Interest rates also tend to be higher than those for a residential mortgage.
How do buy to let mortgages work?
Buy to let mortgages in Beverley work similarly to standard home loans but have key differences. Most lenders require at least a 25% deposit, though some accept less.
Many landlords choose an interest-only mortgage, meaning they only pay the interest each month and settle the full loan balance at the end of the term. Lenders calculate borrowing limits based on expected rental income.
Most require the rent to cover at least 125% to 145% of the mortgage payment. Some also check personal income to ensure the mortgage remains affordable if the property sits empty.
How much can I borrow for a buy to let mortgage?
If you’re exploring buy to let mortgages in Beverley, the amount you can borrow depends on rental income and, in some cases, your personal finances. Most lenders want the rental income to cover 125% to 145% of the mortgage payment.
Some also set a minimum personal income requirement, often around £25,000 per year. One of our mortgage advisors in Beverley can help you understand how much you could borrow based on Beverley’s current rental market.
Who is eligible for a buy to let mortgage?
Most lenders expect you to be at least 21 years old, own a home, and have a good credit history. Some require a minimum annual income, while others only consider rental income.
Although previous landlord experience helps, many lenders still approve first-time landlords. The best mortgage for you will depend on your financial situation and investment plans.
What is the difference between let to buy mortgages and buy to let mortgages?
Buy to let mortgages in Beverley are for those buying a property specifically to rent out. A let to buy mortgage, however, allows homeowners to remortgage their existing property so they can rent it out while purchasing a new home to live in.
This can be useful if you want to move but prefer to keep your current home as an investment rather than selling it. Each mortgage type has different lending criteria, so it’s important to choose the right one for your situation.
How many buy to let mortgages can I have?
There is no strict limit on how many buy to let mortgages in Beverley you can have, but each lender has different rules. Some specialise in landlords with multiple properties, while others limit how many they will approve.
The number of mortgages you can secure depends on your rental income, existing borrowing, and overall financial position. If you’re building a property portfolio, a specialist mortgage broker in Beverley, such as ourselves can help you find lenders that support portfolio landlords.
Can I live in my buy to let property?
No, buy to let mortgages in Beverley are strictly for rental properties. Living in a property with a buy to let mortgage would breach the terms of the loan. If your circumstances change and you want to move into the property, you’ll need to switch to a residential mortgage.
Before approving this change, the lender will reassess your finances to ensure you meet residential mortgage criteria.
Date Last Edited: February 11, 2025
