Buy-to-let mortgages

Buy-to-let mortgages are home loans for people who want to buy a property to then rent to tenants. These types of mortgage buy-to-let products attract a higher interest rate because lenders factor in a commercial element to their charges.

A buy-to-let mortgage differs from other mortgages because the amount lent to a borrower will be based on the expected rental yield generated by the property. Lenders will normally expect a deposit of at least 20 per cent so most buy-to-let mortgage applicants will already own a property in which they have a large amount of equity.

Most buy-to-let property applicants are looking to secure an alternative income as well as building up equity in a property to help fund their retirement. Some property investors will look at buy-to-let re-mortgaging to increase their portfolio of properties. The credit crunch meant that between 2007 and 2010 the number of buy-to-let mortgages available fell by 95 per cent as lenders tightened their lending criteria.

	How to enter the buy-to-let mortgage market With house prices falling and demand for rental property increasing, now is an ideal time for potential landlords to get into the buy-to-let mortgage market.
	Skipton Building Society launches 'competitive' buy-to-let products Individuals interested in buy-to-let mortgages may be pleased to hear that Skipton Building Society has unveiled two new tracker products.
	Coventry BS launches buy to let capped tracker Coventry Building Society has released a capped tracker mortgage for buy to let investors, available up to 65 per cent LTV.
	Skipton BS beefs up buy to let mortgage range Skipton Building Society has enhanced its buy to let mortgage selection, with two new two-year base rate trackers and a two-year fixed rate deal.
	TMW announces new and enhanced buy to let range The Mortgage Works has given its buy to let range a makeover, with the launch of a two year tracker and a lifetime variable rate mortgage.