Buy-to let mortgages are more difficult to get now than in previous years, with lenders typically demanding deposits of around 25% of a rental property’s value in return for a buy-to-let mortgage.
The amount any lender will be willing to offer a buy-to-let mortgage applicant depends upon the amount of rent that’s likely to be chargeable on the property - so it’s crucial to do your homework and ensure your expectations are realistic before applying for your loan.
You should expect to pay a higher interest rate on a buy-to-let mortgage than you would for a normal mortgage.
Booking and arrangement fees on buy-to-let mortgages may also be steeper than for ordinary home loans.
Will I need a mortgage from a specialist buy-to-let broker or lender?
Not necessarily. Many high street banks and building societies offer buy-to-let mortgages, and it’s possible to compare deals online at the click of a button - for example, through MoneySuperMarket’s mortgage channel.
However, many buy-to-let investors choose to find their mortgages through brokers who can offer specialist advice and may have access to a broader variety of buy-to-let mortgage deals. It’s up to you to decide whether you need this extra help.