Buy to Let 2

Posted on 13 March 2011 by Matthew

I own a property outright which has been valued at between £150k to £160k. I earn roughly 20k per annum. I also have £23k in savings for a deposit. What are my options for getting a mortgage for around £130k to buy a second property to rent out?


Please see the question below as this also deals with a few of the points you need to consider when looking at Buy to Let (BTL) mortgages.

Mortgage lending on BTL properties is mainly based on the rental income you can expect to achieve and not your income. Some Lenders do have minimum income requirements, but there a enough around for you to have a good choice with an earned income of £20,000. With regards to the rental income Lenders differ in their own criteria but if the rent you receive will cover 130% of the monthly mortgage interest then again you will have a good choice of Lenders and products.

Really it is the size of the deposit you have that will restrict your choice and you may wish to consider increasing it's size by capital raising on your existing property. You would not have to borrow much more to get access to some of the best combinations of rates and fees available and I believe you would benefit from speaking to one of our independent mortgage advisers.

Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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