Consumer buy-to-let mortgages

Consumer buy-to-let mortgages are for people who have been living in a property and are now converting it to rental. As they’re for people who don’t have a range of properties, they have a higher degree of regulation than mortgages designed for professional landlords.

Deposit

All buy-to-let mortgages require a higher deposit than residential mortgages – a minimum of 20% up to 25% – but you may be able to achieve this through equity in the property. ​

Funding your mortgage

Income for buy-to-let mortgages are normally calculated on rental income, typically taken at 80% occupancy. However, if there is a shortfall between the rental income and the mortgage payments, you may be able to make this up from your other income (known as top slicing), depending upon your other financial commitments. ​

Tax implications

In converting your home to a rental property, you effectively become a landlord, which may have tax implications. We don’t provide financial advice therefore it’s important that you seek an expert opinion, however we are happy to recommend trusted professionals for our clients.

Insurance implications

If your home is now a rental property, this will also invalidate your insurance. Again, you will need to speak to your mortgage broker or company, or we can put you in touch with reputable mortgage brokers in the Tunbridge Wells area who are experienced in consumer buy-to-let properties.