Who can get a buy-to-let mortgage?

Anyone can access a buy-to-let mortgage, the key factors that will allow you to secure a buy-to-let mortgage are:

  1. Owning an existing property, this can either be your own home or another property that you currently rent out. The existing property does not need to be owned outright, a mortgage can be in pace, the key is the equity available within the property.
  2. You must have a good credit score, it is worth reviewing this mortgage guide and looking at the criteria that affect Credit Scores in particular
  3. You must demonstrate that you can afford other credit commitments, including existing mortgage payments, credit cards and other financial commitments (car loans, home improvements loans etc).
  4. You will need to be on a reasonable income, it is unusual to obtain a buy-to-let mortgage with an annual income less than £20,000.
  5. You will need to demonstrate that you have a solid financial plan and your monthly household budget has sufficient scope to cover the repayments. You can work out your monthly household budget here.
  6. You will need to be younger that a certain age when you secure the buy-to-let mortgage. Different mortgage lenders have different age criteria but the cut off for final repayment is typically between 70-75 years of age. As such, if taking a 25 year buy-to-let mortgage you would need to be younger that 45-50 years of age. Shorter mortgages clearly allow for access to buy-to-let mortgages upto an older age, just ensure that the higher monthly repayments due to the shorter loan period are viable, particularly in light of the changes to tax relief on mortgage interest rates that come into effect in April 2017.

In our next buy-to-let mortgage guide we look at how much you can borrow on a buy-to-let mortgage.

Next: How much can I borrow on a buy-to-let mortgage?

Previous: Budgeting for a buy-to-let mortgage

Landlord Guides and Tax Calculators

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