Guide: An Introduction to Buy to Let Mortgages
Buy to Let mortgages are not just for professional investors. If you want to start building a property portfolio, or generate income as a landlord, a Buy to Let mortgage could be for you. There’s even BTL options for first time buyers!
What is a Buy To Let Mortgage?
Buy to let (BTL) mortgages are specially designed for anyone who is looking to invest in the property market. There are several types of BTL product depending on why the property was purchased I the first place. These products include:
Products for those properties which have been brought as an investment.
Products for properties which have been lived in by the owner, but now the owner wants to let it out.
Products for properties which have been inherited or purchased through a Limited company.
Who is it for?
Clients who require a Buy to Let Mortgage could be starting out as a landlord, a ‘portfolio client’ (someone who owns more than three BTL properties) or a professional landlord with hundreds (perhaps thousands!) of properties that they manage.
Buy to Let mortgages are also available to First Time Buyers, even if they aren’t an existing homeowner; however, option for First Time Buyers are limited in this particular market.
We can support you with all types of Buy to Let scenario, including Let to Buy applications where clients decide to let their existing home and making an onward purchase, often to raise funds for a future deposit.
The time it takes to complete on a Buy to Let mortgage varies. For a client looking to secure their first BTL mortgage, the process is shorter than that of a professional landlord. A first time client can expect the process to take around two weeks (not including legal processes which are out of our control).
For a portfolio landlord, especially those with larger portfolios, the process takes more work. A lender will usually require portfolio landlords to provide details for every property within their portfolio. This is to ensure that affordability checks are met.
As it could take some time to collect the details of all your properties, we recommend that portfolio landlords utilise the services of a single Advisor. This way a dedicated Advisor can oversee your case from start to finish, and as your portfolio grows, we can also call upon experience from previous applications to streamline the process.
The Financial Conduct Authority does not regulate most Buy to Let Mortgages
About the Author
Steve joined the financial services industry in 2006 after a 22 year career in the Royal Air Force. Now five years into his time at Warners, Steve is an expert mortgage and protection Advisor