5 factors to research before getting a buy-to-let mortgage

There are many factors to consider when planning a buy-to-let mortgage. Here are five things to research before taking that step into property investment.

Lenders' criteria

Before applying, it's important to understand the criteria lenders use to assess your eligibility. These can include the size of your deposit, your credit history, the expected rental income from the property, and your personal income and outgoings. Researching lenders' criteria can be time-consuming, especially while you are focusing on finding the right property.

Affordability

Buy-to-let lenders typically look at whether the expected rent covers the mortgage payments by a set margin, and the margin varies between lenders and circumstances.

Interest rates

Rates vary by lender, deposit size and product length, so it is worth comparing the whole market rather than one lender.

Deposit size

Buy-to-let mortgages typically need a larger deposit than residential mortgages. Be prepared for this, and factor it into your plans.

Tax

Owning a buy-to-let property has tax implications, including income tax on rental income and capital gains tax when you sell. We recommend speaking to a tax professional.

We can simplify this process: as a buy-to-let mortgage broker, we make sure you have the right information for your property investment while we research the options for you.