Buy to let mortgages do differ in several ways from standard mortgages. When lenders are considering approving a buy to let loan, they generally base their decision on the likely rental income from the property and not necessarily the applicants' income.
A prospective landlord needs to be aware that the rental income typically needed is 125% of the mortgage repayment although this can vary from as little as 100% rental income up to 145%. The mortgage repayment amount they use to ‘test’ the rental income is not based on the actual rate you would be paying it is based on a higher rate which is typically between 4.5 –5.5%.
Another difference with Buy to let mortgages is that as a Buy to Let landlord you do have a choice between interest only and repayment mortgages.
The Buy to Let market is continuously changing and we aim to keep our advice clear and simple to help you make the right decisions for you, our expertise in this market means we can help you find the best product to suit your requirements.