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.
	Buy-to-let mortgage offering boosted at Yorkshire BS Yorkshire Building Society has changed its buy-to-let lending criteria and expanded its products' geographical remit.
	Co-operative Bank's Platform boosts buy-to-let products Platform, the intermediary mortgage lender for the Co-operative Bank, has announced that it has launched a new range of buy-to-let products.
	A guide to insurance for buy-to-let landlords Tenant rentals of landlord's buy-to-let property is becoming increasingly common and this trend is likely to continue. This means having the right insurance as a landlord is vital. Kate Saines explains the options.