buy to let mortgages are essential to get the right gearing on your money. It's important to choose the right buy to let mortgage. Buy to let mortgages are basically the same as normal residential mortgages.



Where buy to let mortgages differ is the the deposit, interest rate and some of the terms & conditions :

buy to let mortgage deposit - current maximum is 85% for buy to let mortgages (May 2004), whereas normal residential mortgages can go 100% (or more...)

buy to let mortgage interest rate - these tend to be a little higher than normal residential mortgages, but some brokers are offering competitive deals.

buy to let mortgage terms & conditions (1) - lenders will usually, maybe always, stipulate a minimum rental income of 130% - 150% of rental income.  They want to be sure mortgage can still be paid during void periods, or when repairs are needed.

buy to let mortgage terms & conditions (2) - for new investors, some lenders will require they use ARLA letting agents to manage their property.

Other buy to let mortgages features - in the same way as residential mortgages, there is now flexibility to overpay and underpay, or even take payment holidays.