What is it?
Buy-to-let (BTL) finance is a mortgage used by investors looking to buy and hold a residential property which is let to tenants. The rent from BTL properties is used to cover the loan repayments, and may generate additional income.
Good BTL investments can offer strong yields. In addition to providing a monthly income, BTLs are a long-term investment, and owners can benefit from increased property values over time.
Who is it for?
BTL mortgages are designed for individuals or companies looking to rent out a private property to tenants. Clients range from first-time investors, to pensioners, professional landlords, expats and investment companies.
Investors looking to take out a BTL mortgage under the name of a limited company should refer to our Limited Companies / Special Purpose Vehicles section.
To ensure your BTL is a viable investment, you should undertake extensive research into the local property market to determine the demand for the specific rental accommodation.
Geographical location can often affect the appeal of a BTL property. For example, if the property in question is located near a transport hub, will this improve its rentability?
Many people become BTL landlords as a part-time occupation. Whilst this is a viable way of operating, we recommend every client ensures they are in a comfortable position to manage their investment.