If you’re thinking about purchasing a property to rent out or growing a portfolio of properties, then you’ll need a Buy to Let mortgage as it is illegal to let out a residential property without a Buy to Let mortgage unless you have consent from your lender.

Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

When applying for a Buy to Let mortgage your lender will request additional information compared to a residential mortgage application to ensure suitability and affordability. The exact requirements can vary from lender to lender however the main points they will look for as a base are:

Borrower should:

• Ideally own a residential property
• Have an annual personal income/salary of at least £25,000
• Have a particularly good credit score
• Have no intention of residing in the buy to let property while having a BTL mortgage on it.
• Check that that the anticipated rent is realistic for the property,
• Be aware that the property condition needs to suitable for immediate occupancy.
• Be aware that although most lenders state a minimum deposit of 25% is required this will be subject to a rental stress calculation and as such may need to place a higher deposit figure forward to make it viable for mortgage purposes.