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Buy to Let Morage Salary Requirement

baseage
baseage Posts: 4 Newbie
in Mortgages & endowments
Hi All

I understand that for a normal morgage, you can borrow 3 or 4 times your annual salary. Does anyone know if this is the same for a buy to let or is it different?

Michael

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No. BTL mortgages are in effect commercial loans. So are based on rental value of property combined with an interest rate factor as determined by the lender. However you may well require an income above a certain threshold to meet the lenders criteria.
  • kingstreet
    kingstreet Posts: 39,353 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A typical BTL provider may want one, or more, of the following;-

    - minimum 25% deposit
    - minimum personal income
    - already be a homeowner
    - rental income of 125% of monthly mortgage interest assuming 6%pa
    - readily lettable property
    - let on an AST basis
    - no occupation by a family member of landlord.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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