What is Buy to Let? Buy to Let Mortgages Explained
If you’re thinking of buying to let, it’s important to understand how buy to let works and what options and challenges come with a buy to let mortgage.
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If you’re thinking of buying to let, it’s important to understand how buy to let works and what options and challenges come with a buy to let mortgage.
Most BTL lenders will require you to earn at least £25,000 a year. There are some lenders that can provide a BTL mortgage without a minimum income requirement if you follow their lending requirements.
It is possible to rent your BTL property to a family member, but this should be disclosed to your mortgage lender as many lenders have strict regulations for renting to family. Many lenders will require you to get a special Family BTL mortgage.
Family Buy to Let mortgages allow you to let to family members and charge reduced rent, but you will often need a bigger deposit and the affordability assessments are stricter than they are with regular Buy to Let.
We would strongly advise that you don’t advertise your Buy to Let property to rent until the transaction has been fully completed.
However, we would recommend that you have workmen on standby to enter the minute you get possession, and undertake any remedial work and then cleaners ready to have it spotless. You can speak to lettings agents and have an agent lined up ready to list the property once it is ready. Hopefully, you will be able to get access to the new property for the agent to take photos and to prepare full details.
It is estimated that 25% of property transactions fail, and yours could become victim to a problem in the chain, which is totally unrelated to your transaction, but affects you nonetheless. The last thing you would then need is a tenant suing you following the signature of a tenancy on a property that you did not legally own at the time.
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