It’s important to note that not all lenders have the same buy to let mortgage criteria so just because you have been turned down by one doesn’t mean that you won’t be accepted by another. To find out which Buy to Let products are available to you Make an enquiry and we will assess your circumstances free of charge for more information on buy to let mortgage criteria read on.
Age – The minimum age requirement for a buy to let mortgage is 18 however some lenders will not accept applicants under 21 or 25.
Status – Do you fall into one of the following catagories ? First Time Buyer
First Time Landlord who currently has a residential mortgage but no buy to let properties.
Experienced landlord with multiple Buy to Let properties.
Each status will effect both which lender will accept your application and which products are available to you, for example the majority of lenders will not approve a Buy to Let application for a first time buyer but there may be a few lenders who will contact us today and we will search the market for a suitable provider.
For an experienced landlord who wishes to expand their portfolio their current lender may place a cap on how many buy to let properties a single applicant can have with them at any one time this is to reduce losses in the event of repossession in this case they may find that they have to spread their portfolio over a range of different lenders .
Residence – The majority of lenders will require the borrower to be residing in the UK which means expats will struggle to invest in the UK Buy to Let market while they are working abroad.
Credit History – Poor credit history will always have an impact on your ability to obtain a mortgage weather it be residential of buy to let. Those with poor credit may not be able to obtain a mortgage at all much will depend on both the severity of the default and how recent it was. At best poor credit will limit both the lenders you have to choose from and the products available.
Property Type – They majority of lenders will offer buy to let mortgages on all standard homes such as detached, semi-detached, bungalows, terraced homes and town houses. Some lenders may refuse to lend on studio flats or ex council houses if they perceive the risk of default to be higher.
Purchase Price – All lenders in Northern Ireland will impose minimum purchase prices on buy to let property usually around £50,000.
Deposit – You will require a minimum deposit of 25% of the properties value eg. If you wanted to purchase a Buy to Let property with a market value of £100,000 you would require a minimum deposit of £25,000.
The type of tenant can play a role in which lender or products are available. A lot of lenders will refuse an application if the property is intended to be let to students or people relying on rental support from state benefits.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority