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A Buy To Let mortgage is a mortgage for a property you’re renting to someone else, rather than living in yourself. So in other words, an investor borrows money to purchase a property to let out to tenants.
Typically a Buy To Let mortgage is more expensive than a residential mortgage and they are classed as a specialist area. It isn't unusual for some lenders not to cover buy to let mortgages at all! With this in mind, its worth remembering that if you want to let out the property you are living in, you will have to switch to a buy to let mortgage, or at the very least seek your lenders permission before doing so
What type of landlord are you?
There are more than one type of landlord, and depending on what type you are will depend on the mortgage you can get.
If you're buying a property with the intention to let it out, your mortgage is classed as a business loan, not regulated by the Financial Conduct Authority (FCA). This is a major difference to normal residential mortgages. However, at Hello Mortgage we don't see it this way, we treat all Buy To Let mortgages as if they were fully regulated. We believe this ensures the best possible outcome for all our clients regardless if they are first time landlords or experienced portfolio investors.
Portfolio Landlord - Typically you own 4 or more properties and/or have a growing property portfolio. If you are looking to re-mortgage some or all of your portfolio we can help.
Accidental Landlord - This means you became a landlord by accident. You may have inherited a property, or moved in with your partner. Either way, it was not your intention to own a property that you are going to let out.
If this is you, your best using an experienced broker like Hello Mortgage's Buy To Let team.
Not every broker has access to the whole market when it comes to Buy To Lets, we do! As many Buy To Let mortgages are “intermediary only” you can only get them through a broker.
Re-mortgaging your Buy-To-Let loan
As with a residential mortgage, it always pays to shop around.
Many of our clients re-mortgage their Buy To Let properties to get a better rate, raise additional capital for large refurbishments or to expand their portfolio.
If you’re looking for re-mortgage deals yourself, don’t be fooled by attractive advertising. There might be other fees, and changing interest rates will affect how much you pay over the life of your mortgage – its true cost. We can help you make sense of the options, and find the one that’s right for you.