As the Buy To Let (BTL) mortgage market continues to evolve, the rules can be rather tricky to navigate, especially for those entering this buoyant property market for the very first time. The main considerations for a lender in determining whether your application would be successful might be:

  • Rent potential – The decision as to whether or not a mortgage will be offered is usually based on the rental income receivable and the length of any tenancy agreement. In some instances, earned income is not taken into account and in others, it may be used as an additional income stream when there is a shortfall in rental income being received (top slicing).
  • Whether you are identified as a Regulated BTL client.
  • Whether you are identified as a Consumer BTL client or a Portfolio Landlord.

The Financial Conduct Authority does not regulate on Buy to Let Mortgages.