Buy-to-Let Mortgages Overview
May 16th, 2008 |
Buy-to-Let mortgages are specialised products designed for situations in which residential property is purchased with the intention of letting it out. While many people may think they buy-to-let mortgages are a type of residential mortgage, they are in fact viewed by the Financial Services Authority as commercial mortgages. In this way they are similar to finance products secured on commercial properties.
Because of this, lenders usually assess buy-to-let mortgage applications based on the expected rental income of the property compared to the expected outgoings, such as the monthly mortgage payments. Some buy-to-let mortgages may also take into consideration income derived from other sources, such as the applicant
