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Are Buy-to-Let Mortgages Harder to Get?

When it comes to investing in property, buy-to-let mortgages are often seen as more difficult than residential mortgages. Learn more about how to obtain one.

Are Buy-to-Let Mortgages Harder to Get?

When it comes to investing in property, buy-to-let mortgages are often seen as a more difficult option than residential mortgages. This is because landlords often have issues with collecting rent and it is unlikely that their property will be occupied constantly. However, obtaining a buy-to-let mortgage and becoming a homeowner is easier than you might think. Previously, purchase-to-rent requests were based primarily on the applicant's income and credit history. This meant that purchase-to-rent mortgages were only available to homeowners with clean credit and substantial income.

Nowadays, however, purchase-to-rent mortgages are more accessible than ever before. Having a larger deposit or amount of capital will usually give you a better chance of getting the best deals. Monthly repayments must also be made, although lenders will offer purchase-to-rent mortgages with the expectation that the income you earn from the rent will cover them. There are some key differences between purchase-to-rent mortgages and ordinary mortgages that could make it difficult to buy a property for rental purposes. If you want to invest in a property and become a homeowner, but don't have enough capital to buy a property outright, you'll need a buy-to-rent mortgage.

A specialized mortgage broker across the market (also known as a mortgage advisor) will be able to compare mortgages from many different lenders to help you find the one that best fits your needs. Even if you remortgage a purchase-to-rent property, lenders can still conduct a mortgage survey to assess if the property meets their specific requirements. It could be that you have the funds available to settle this directly or, alternatively, that you want to sell the property or apply for a new mortgage to pay what you owe. Starting your investment journey on the right foot is crucial, as you don't want to overpay on your mortgage. We always recommend talking to a specialized mortgage broker across the market who can analyze all the offers available to find the best lender and the best mortgage for you. All you have to do is contact a mortgage broker and they can point you in the right direction. Unlike residential mortgages, you'll need at least a 25% deposit if you want to become a homeowner, since at any given time there are very few purchase-to-rent mortgages on the market, or even none, that accept less than that amount.

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