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.
	Buy to let properties up by 84,000 in 2011, says CML The number of properties bought with buy to let mortgages rose by 84,000 last year, helping to boost the supply of private rented housing, new figures reveal.
	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.