We tend to find that the minimum deposit required for a buy to let mortgage is 25% of the property value. That being said, whilst 25% is known to be standard, the amount you need to put down can vary anywhere between 20-40%. This all depends on your history as a landlord, circumstances, as well as the mortgage lender you are paired with.
The amount that a landlord can borrow for a buy to let mortgage will be determined by the rental income that the property is likely to generate, once tenants have been found and a tenancy agreement starts.
In addition to this, the majority of mortgage lenders will also want to see that you have a good source of income coming in from your main job. The reason for this is that you are going to need to be able to cover the mortgage payments, in the event of any down periods where you don't have tenants.
There are some lenders who do not focus on your personal income when it comes to taking out a buy to let mortgage, whereas others need you to be earning £25,000 pa or more.
If you have sufficient equity in your house and can release this equity via a remortgage, you are able to use this for a deposit on a buy to let property. Remember, a buy to let deposit is typically 20%-40%.
Yes, as a first time buyer it is possible for you to get a buy to let mortgage, though this will depend on the mortgage lender. Your situation would be a risky one, as you have no home owning experience, which is something that a mortgage lender will ideally want to see in an applicant.
Generally speaking, a mortgage lender will only offer buy to let mortgage deals to existing homeowners. Whilst not impossible, you would likely have an easier time applying for a buy to let mortgage if you already owned your own home, as it provides a track record of being able to keep up your monthly mortgage repayments.
For more information, please feel free to read our article "First Time Buyer Buy to Let Mortgages Explained", where we answer some of the most popular questions regarding first time buyers buy to let landlords.
Yes, depending on your circumstances it is possible to change your mortgage to a buy to let. The main factors that will be considered when switching your mortgage to a buy to let are affordability, equity in your home, credit history, and the type of property.
If you would like to change your mortgage to a buy to let, please feel free to read our article "Can I Change My Mortgage to a Buy to Let?", where we have listed the necessary steps to make sure if you are eligible to switch your mortgage to a buy to let.
The Financial Conduct Authority does not regulate some types of buy to let or commercial mortgages.