Buy To Let Mortgage Criteria

In a word, yes! As long as you do it right, buy-to-let can deliver amazing results for you, but you must make sure that you are aware that you don’t always get these results right away, it can take time and hard work does eventually pay off. 

This is due to the higher costs of investments, so buy-to-let typically takes longer to achieve profitable returns compared to other financial investments.

With any buy-to-let mortgage comes with an array of legal requirements that must be met. However, there are certain ones for UK landlords that must also be adhered to. 

• Landlord insurance – If you own a buy-to-let property, your lender may insist that you carry landlord’s insurance in the event of a fire or flood, for example. If one of these disasters strikes, it will affect your income stream, but landlord’s insurance would cover this for you.
• Deposit schemes for tenants – Renters must be given details of their deposits within 14 days by landlords when they place them in either an insured account or a custodial administered account.
• Energy performance certificates – Energy performance certificates are required by law for any UK property that is marketed for sale or rent in the country.
• Electrical checks – Prior to the start of a new tenancy, a qualified electrician must conduct an electrical safety check of the property.
• Gas checks – Licensed gas engineers must inspect the gas supply of all UK landlords’ properties every year.
• Furniture regulations – It is the landlords’ responsibility to ensure that all furnishings comply with the latest fire safety regulations in the UK.

In short, anyone can get a BTL mortgage as long as they are ale to meet the lenders criteria and are able to afford it.

In today’s market, most lenders require that rental income be around 125%-145% of monthly mortgage payments, depending on their criteria. 

Lenders also may require you to be earning a minimum of £25,000 a year, but there are specialist lenders out there who may be able to do it for less or no minimum income at all.

It is important to recognise that every case is unique, however, it is common for buy-to-let purchases to receive a mortgage offer within 3-6 weeks and complete it within 4 weeks after that. 

Of course this doesn’t account for possible delays, so it could be longer until it all finalises, but patience is key, and it will all be worth it in the end when you have your own home.