Buy to Let mortgages ultimately are when you are looking to purchase a property with the sole intention of renting this out to a tenant. Mortgages for buy to let properties are normally assessed differently to a standard residential mortgage and making sure you are getting the right advice and guidance is going to be a great starting point on your journey to building a portfolio or having a just a few properties you’re looking to rent out. The main difference with buy to let mortgages and residential ones is most people will look to opt for an interest only mortgage – Whereby you only pay back the rent charged against the loan versus repaying the interest and the capital of the balance. This enables landlords to maximize their profits to put to other uses or to build a reserve to raise deposits to invest further.

Let to Buy mortgages are a tad different, this is where you have the possibility of converting your current residential home to look at renting this out normally with the aim of buying a new property to live in, either for yourself or your family. We see a lot of clients who opt for this method with new relationships forming and being emotionally attached to your old home, it doesn’t necessarily mean you have to sell in order to move. Subject to LTV’S (Loan to Value – The amount of mortgage versus your property value) it can be an effective way of entering the property investment space and using equity within your home as a deposit for your new place.

Buy to Let and Let to Buy, although sounding the same there is one main difference. A buy to let is regarded as purchasing a new property with the aim to rent it out whereas, let to buy is converting your current property you own with the view to renting it out and buying on again. Although you dont necessarily have to purchase a new residential home with some lenders this is the norm that we help with on a daily basis.

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority