Buy To Let Mortgages

At BD Mortgages we are often asked what is a buy-to-let mortgage and how do they work?

A buy-to-let mortgage is a type of home loan for buying property that you intend to rent out to residential tenants for a profit. Most buy-to-let mortgages in the UK are interest-only, with the landlord paying the monthly interest using rental income.

The other question we are asked is what is the difference between buy to let and let to buy?

With buy-to-let, you’re purchasing a property specifically to rent out, whereas with let-to-buy you’re buying a new property to live in yourself and renting out your current home.

Finally, the majority of buy-to-let mortgages are not regulated by the Financial Conduct Authority (FCA), unlike their residential counterparts.

For more help and advice on Buy to let Mortgages please contact us at Blake and Day.