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Buy to Let 
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What is a Buy To Let Mortgage?

A BTL mortgage is a product specifically used to purchase property to be used to let out as opposed to residential. Most lenders will not allow you or any close family member to live in the property if you choose this mortgage scheme. If you plan to let out your property, most lenders will prefer you not to finance your purchase with a regular residential mortgage.

A Buy to Let (BTL) mortgage can be used for a variety of strategies including:
Single Lets – letting the property to a family or professionals.
Home of Multiple Occupation (HMO) - a property that is let on a room-by-room basis.
Holiday Let - a property that is let on a week-by-week basis. This is can also be Air B&B type lettings.
The eligibility and affordability criteria of a BTL mortgage is not based on personal income (although this is taken into consideration) it is based on the rental and value of the property. You have the option of two payment methods with BTL mortgages, interest-only – where you are paying only the interest each month or capital & repayment – where you are paying the interest, together with the capital each month. The term of the mortgage can also exceed your retirement age.

A BTL property can be purchased in an individual name or within a limited company that is specifically for the holding and rental of property and is also known as a Special Purpose Vehicle (SPV). We can help with both scenarios. Please consult your accountant or property tax specialist to see which is the most suitable option for your situation.

How much can I borrow for a Buy to Let Mortgage?

Determining factors are the property and rental values, the number of properties you own amongst other factors. However, every lender has their own eligibility criteria.
What are the eligibility criteria?
Each lender has their own criteria requirements when it comes to eligibility for a BTL mortgage. In general, most will expect you to be an owner occupier of your home, have an income of at least £25k and have a 25% deposit of the property price. However, there are exceptions to these criteria with a select few lenders.

We are here to help you

Speak to our experienced AA Mortgage adviser today
AA Mortgage Services, a trading style of AA Mortgage Services Ltd is an appointed representative of HL Partnership Limited, 
which is authorised and regulated by the Financial Conduct Authority.​

The Financial Conduct Authority do not regulate some aspects of buy to let and commercial mortgages. ​

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.

There may be a fee for mortgage advice. The precise amount of the fee will depend upon your circumstances but will range from £295 to £695 and this will be discussed and agreed with you at the earliest opportunity.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE PAYMENTS
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