Buy to Let
Apart from the purpose of the mortgage, a buy to let mortgage, which can also be called an investment mortgage, differs from a standard residential mortgage because a lender will take into consideration the rent you will earn from the property as the primary source of income for affordability purposes.
When considering a buy to let mortgage application, a lender will typically look for a prospective rental income of 125% of the monthly interest payment of the loan, but may also require the landlord to have a minimum personal income e.g. £25,000 per annum.
Because demand in the rental sector is high, an investment property could be an ideal venture for the right person. However, finding the right buy to let mortgage has recently become more complex.
The FCA does not regulate some forms of Buy to Let mortgages.
For further information or to arrange an appointment with a representative of Parnaby Evans, please call your local GSC Grays Agency office:
Barnard Castle tel: 01833 637000
Leyburn tel: 01969 600120
Stokesley tel: 01642 710742