Buy To Let

Buy to let is a process where an individual buys a property (such as a house or flat) with a view to renting it out to somebody else rather than living in it themselves. This may be done by an individual simply as a way to invest cash and to make some extra money. Alternatively, it may be done by an individual as part of a business operation or property portfolio or, indeed, by a specific business that specialises in this kind of operation.

Most individuals looking for a buy to let deal will need to raise a mortgage for this purpose unless they can buy the property outright. In most cases the mortgage given here will be a specialist buy to let product rather than a standard home buying mortgage. If you do use a standard mortgage for this purpose then you will generally need the permission of the mortgage lender to do so otherwise you could invalidate your mortgage deal.

Buy to let mortgages work like regular mortgages but you may have to pay a higher deposit and the money that you can borrow may be calculated differently. So, for example, it may be calculated partly on the rental income you can make on the property as well as on your own financial situation. Buy to let mortgages are offered by the majority of banks and major financial institutions as well as a range of specialist lenders.