A buy-to-let (BTL) mortgage is a mortgage for people who want to buy a property (a house or a flat) then rent the property out to tenants. Buy-to-let mortgages generally need a larger deposit than residential mortgages and the interest rates are typically higher. The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value.

Property owners can choose if they wish to have the loan on an interest only or repayment basis. With an interest-only mortgage, your monthly payment pays only the interest charges on your loan, not any of the original capital borrowed.

This means your payments will be less than on a repayment mortgage, but at the end of the term you’ll still owe the original amount you borrowed from the lender.

With a repayment mortgage, you pay back a small part of the loan and the interest each month. Assuming you make all your payments, you’re guaranteed to pay off the whole loan at the end of the BTL Mortgage term.

Let to Buy (LTB) is a mortgage solution giving homeowners the freedom to move from their existing house whilst removing any pressure  to sell.

If you don’t have a sufficient deposit to buy your new home, but you have good equity in your existing property you can do a let to buy mortgage to release equity for your deposit. The property is then let out using the rental income to cover the let to buy mortgage payments.

In cases like this we are usually applying for two mortgages on behalf of our clients (a residential mortgage and a buy to let mortgage) and processing them simultaneously so that the lender is clear your current property will be rented and future property purchase you will live in.