9th March 2022

With a buy-to-let property sector that has seen rental demand grow to a 13-year high and an increase of 4.6% in average rents in the UK over the past year, according to Zoopla’s latest Rental Market Report, there has never been a better time for landlords thinking of investing in the buy-to-let market or adding to their investment portfolio.

There has also been great news when it comes to the number of buy-to-let mortgage products available to landlords with a small deposit or lower level of equity. If you can put down a 15% deposit, there are now almost 30 85% loan-to-value (LTV) buy-to-let products to choose from.

So, with perfect timing and reinvigorated confidence in the investment property market, we’ve got answers to the buy-to-let questions that are asked the most before you make your move to the next step with an application for a buy-to-let mortgage.

Do I qualify for a buy-to-let mortgage?

The borrowing criteria for a buy-to-let mortgage varies from lender to lender, traditionally you would have needed to show earnings of at least £25,000 that aren’t connected to property rental. However, there are now a number of lenders who do not have any income requirement, meaning you can purchase a buy to let property even if you’re not in employment. If you own your own home, that will also stand you in good stead for a buy-to-let mortgage. Whilst minimum deposits of about 25% of your proposed investment property value have traditionally been required by lenders, the increasing numbers of 85% buy-to-let mortgages are showing that the market is broadening.

Do I pay tax on rent from a buy-to-let property?

Yes, your rental income is subject to income tax – you should talk to your accountant about buy-to-let property income if this is to be your first foray into property investment.

Can I live in a property that has a buy-to-let mortgage?

Buy-to-let mortgages are for landlords only, which means you can’t live in your own buy-to-let home. If you want to live in the property, you’ll need to apply for a standard homeowner mortgage.

Can I convert a buy-to-let mortgage to a residential homeowner mortgage?

You should be able to switch your buy-to-let mortgage subject to meeting the new lender’s affordability criteria.

How do I apply for a buy-to-let mortgage?

You first step should be to talk to the experts in buy-to-let mortgages. We have access to the most competitive buy-to-let mortgage products that are currently available. Whether it’s your first buy-to-let investment or you’re expanding your investment property portfolio, the advisers at Charters Financial Services will find the right product to suit your purchase.

Need more information about buy-to-let mortgages?

Call Charters Financial Services on 03454 500200 to get your buy-to-let mortgage application off to the best start or, for more information read our expert guides here (https://www.chartersfinancialservices.co.uk/find-the-right-mortgage/buy-to-let-mortgages/expert-guides/).

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