Buy-to-Let Mortgages

These mortgages are designed for anyone planning to buy an investment property - you can use the income received from rent to pay the mortgage repayments. Most lenders will lend a maximum of 75-80% of the value of a property, with interest rates typically around 1% higher than standard home loans.

The advantage of a buy-to-let mortgage is that the mortgage lender will consider your rental income when calculating your ability to repay the loan. So you may be able to borrow more money based on the fact that your income will increase after you have secured the mortgage. This means that your potential rental income will be a factor in the lenders risk assessment.

If you have any surplus rental income, you can use it to make overpayments on your mortgage and you can also choose to have your rental payments paid directly into your mortgage 'account' if you've got a flexible mortgage.

Do note, however, that if you decide to take out a second mortgage, you MUST let both lenders know that you're paying two mortgages, otherwise you will be committing mortgage fraud.