Question 1

What is a buy to let mortgage

Accepted Answer

Buy to let mortgages are used to invest in property. They are not arranged in the same fashion as a residential mortgage and are often based on the rental yield you receive on your property.

Question 2

What is an HMO?

Accepted Answer

An HMO (House in Multiple Occupation) is a house where multiple, unrelated tenants have exclusive access to their rooms and share common living areas, such as a kitchen or bathroom. The property can either be let on one agreement that includes all the tenants, or each tenant can have its own agreement. Legislation requires that some HMOs are licensed by the local authority, so it is important to check.

Question 3

I’ve found a property I’d like to buy but it needs work before it can be let out, can I get a buy to let mortgage?

Accepted Answer

Alas, you cannot! Buy to let mortgages are only available on properties that are immediately habitable. If the property requires improvements before it can be let may need to consider bridging finance in the first instance. Then, when the property is ready to let, you can then move onto a buy to let mortgage.

Question 4

Are buy to let mortgages regulated?

Accepted Answer

As buy to lets are a commercial transaction they are not regulated by the Financial Conduct Authority. That being said from 21 March 2016 the rules changed to incorporate what is known as Consumer buy to Let.

Consumer buy to Let provides a distinction between “accidental” landlords who may need consumer protection and “professional” landlords who operate their property portfolios as a business.

Question 5

What level of deposit will I need for a buy to let?

Accepted Answer

Buy to let mortgages are available with a deposit of just 15%.  However, if you are new to buy to let, you may not be able to qualify for such a product. Most buy to let mortgages require a deposit of 25%.

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General Mortgage Questions

How does a mortgage work?

What is a mortgage broker?

How much can I borrow?

What is an LTV?

What is the difference between a repayment mortgage and an interest only mortgage?

Should I fix my mortgage and how long for?

First Time Buyer Mortgage Questions

What size mortgage deposit do I need?

How much can I borrow as a first time buyer?

How much stamp duty will I have to pay?

Should I be saving for anything else?

Which type mortgage should I opt for?

Remortgage Questions

What is a remortgage?

When should I consider remortgaging?

Buy To Let Mortgage Questions

What is a buy to let mortgage

What is an HMO?

I’ve found a property I’d like to buy but it needs work before it can be let out, can I get a buy to let mortgage?

Are buy to let mortgages regulated?

What level of deposit will I need for a buy to let?

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