Buy-to-let Mortgage in Full Detail for Property Investment in UK


Our previous two articles educated investors about the important things related to the buy-to-let property mortgages. You have already been introduced to buy-to-let mortgage through them. This series of articles is going to be your medium to learn some basics related to the buy-to-let mortgage for property investment in UK in full detail.

Who Buy-to-let Mortgages are for?

We have already discussed it in two of our previous articles. This is just a small reminder about it for anyone interested in buying an investment property for sale in the UK to rent it out. The rules of buy-to-let mortgages are very much similar to the rules of regular mortgages. However, there are some key differences between the types of mortgages.

Some Basics of Buy-to-let Mortgages

Who is eligible for buy-to-let mortgages? According to the experience of practiced property investment agents in London, you are eligible for buy-to-let mortgage only if you successfully fulfill all of the conditions mentioned below:

· You should be ready for investing in property in UK.

Yes! That’s true! Investment in residential property such as houses or flats is mandatory for getting buy-to-let mortgages.

· You Must be Able to Take a Risk:

Investing in property in the UK is like taking a rollercoaster ride. You never know what is going to happen next. You may top the market in a moment but you may also have to lick the dust the very next moment. Can you afford this much risk? If not, experienced property investment agents in London can advise you.

· You Must Have Your Own Home:

Getting buy-to-let mortgages for property investment in the UK can be difficult if you don’t have your own home, whether completely outright or completely with an outstanding mortgage.

· Maintain a Healthy Credit Record:

It is very important for any investor to maintain a very healthy credit record consistently. Make sure your credit record does not get too stretched on your other borrowings like your current borrowings and credit cards.

· Income of Minimum £25,000 Per Year:

Investing in property in UK requires you to ensure minimum income of £25,000 per year for getting buy-to-let mortgages. If your income does not exceed £25,000 per year then you will definitely struggle to find a lender for approving your buy-to-let mortgage.

· You Must be Under a Certain Age Category:

You are eligible for getting buy-to-let mortgage for property investment in UK only if you are under a certain age category. In simple words, lenders have set strict upper age limits, typically between 70 years to 75 years. This is the oldest you can be as an investor. Let’s take a look at an example below:

Example: if you’re 40 years old currently when you get a mortgage for 30 years. It will come to an end when you get to be 70 years old.

This was about the conditions to be fulfilled by an investor applying for buy-to-let mortgage for investing in investment properties for sale in London or the rest of the UK. This is merely a beginning. You should also know about the ways buy-to-let mortgages work. But you should be educated about some key differences between buy-to-let mortgages and regular mortgages first.

Some Differences Between the Buy-to-let Mortgages:

Interest rates on buy-to-let mortgages are usually high as compared to the regulated mortgages.

· According to The buy2let Shop reviews, the charge is also much higher than the fee of regulated mortgage.

· The minimum deposit for buy-to-let mortgage can vary between 20 and 40 percent easily. However, it is usually up to 25% of the value of investment properties for sale.

· Most of the Buy-to-let mortgages are interest only. This is why it becomes important for you to know you don’t have to pay even a single penny from your pocket on a monthly basis. Instead of this, you have to pay the entire capital in full at the end of the mortgage.

· Take a good look at the official Facebook page of The buy2let Shop and you will notice that Financial Conduct Authority does not regulate most of the buy-to-let mortgage lending. There are a few exceptional cases where FCA may come into play, for example, if you wish to let your property to some of your close family member such as spouse, child, grandparent, civil partner or siblings etc. Coming back to the point, these are usually called a consumer buy-to-let mortgage. This is why the same affordability rules are applied as a very strict residential mortgage.

· Don’t forget, if you are getting a buy-to-let mortgage for investing in investment properties for sale from an FCA authorized lender then you can expect them to treat you fairly.


This is merely a beginning of education about the buy-to-let mortgages. Stay in tune as our next article will educate you about some relevant and necessary topics listed below:

· The amount you can borrow for buy-to-let mortgages.

· From where you can get the buy-to-let mortgages.

· The importance of planning for a time when there is no rent coming in.