Buy to Let Mortgage Guide

Yes, this will be called a Buy To Let (BTL) mortgage. Arranging a BTL is similar to arranging a residential mortgage, with the key difference that the amount a lender will lend to you is based on how much rent you will receive for the property and is not always based on your income. Another key point to consider is that you will need to provide 25% deposit.

BTL has changed a lot over recent years, and it is essential that you speak to a reliable broker for specialist mortgage advice. It is also important that you speak to an accountant as there may be tax implications for you.

No, you will be breaking the terms of your BTL mortgage. If you find yourself in this situation, then you will have to change your mortgage from buy to let to residential. You should speak to your broker urgently.

If you're moving home, you may be interested in keeping your current home and transforming it into a property to let – a process referred to as ‘let to buy’. If you decide to move out of the property you're currently living in and intend to rent it out, you'll need a buy to let mortgage.

One option is to ask your current lender for their consent to let the property, which might involve changing your mortgage to a buy to let rate – not all lenders will allow this. Alternatively, you can remortgage to a new lender on a buy to let deal. If you plan to stick with your current lender, you must inform them that you intend to let your home – failure to do so could mean a serious breach of contract.

If you need to release equity from your current home to fund a new purchase, you can do so during the remortgage process – provided you have sufficient equity and satisfy the lender's criteria.