What You Need to Know About Buy to Let Mortgages in the UK Right Now

What You Need to Know About Buy to Let Mortgages in the UK Right Now

There has been a lot of negative press about buy to let in the UK over the last few years. This increased scrutiny on BTL properties has resulted in stricter lending criteria for landlords, making it much harder for potential landlords to get a mortgage. Many prospective investors have been put off, with some withdrawing entirely from this market and others reassessing their plans. This blog explores everything you need to know about buy to let mortgages in the UK and whether now is still a good time to invest as a landlord.

Are BTL mortgages harder to get now?

A BTL mortgage is like any other one – you take out a loan to buy a property but rent it out to tenants rather than live in it yourself. Landlords typically use BTL mortgages to buy properties where they can earn a good income from renting them out to tenants. There are many reasons why people choose to invest in BTL properties, but they all revolve around the potential for good rental income. BTL mortgages are no harder to get now than they were a few years ago. However, the criteria for being approved for a BTL mortgage are much stricter than they used to be. This has resulted in many more landlords having to look for alternative finance. 

Should you still invest in BTL properties?

There has been a lot of negative press around BTL mortgages, with many investors worried that they will never be able to get a mortgage again. The short answer is yes if you can find a way to do so! But if you are disciplined in your approach, getting a mortgage as a private landlord is still possible. If you are interested in investing in BTL properties, there are two things you should do first. Firstly, take a look at your finances to make sure you will be able to get a mortgage. And secondly, research the market to find out if now is a good investment time. If you can answer these questions in the affirmative, then now is a great time to start investing in BTL properties.

How Can You Increase Your Chances of Getting a BTL Mortgage?

One of the most important things is ensuring your finances are in order. Lenders like to see a solid financial track record and good savings and investment habits before lending to someone. You will also need to save up a deposit of at least 10% of the total value of the property you want to buy and meet any minimum income and credit score requirements. The bottom line is this – if you want to get a BTL mortgage, you need sound financial habits. Having excellent credit and a good income will go a long way in helping you get approved for a mortgage. You should also consider the type of mortgage you want to get. As mentioned earlier, the stricter lending criteria mean that getting a standard mortgage is much more complex. That’s why you might want to look into alternative finance like a bridging loan or a buy-to-let mortgage or working with a broker so you can navigate Complex Buy to Let Mortgages with LDNfinance, for example.

Bottom line

If you’re interested in investing in BTL properties, now is a great time to do so! While getting a mortgage for BTL properties is now more challenging, it is not impossible. And in general, the market is still a good time to invest. With a sound financial track record, good savings habits, and a little bit of luck, you’ll be able to get a BTL mortgage and start growing your property portfolio.

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