Buy to let has been an attractive investment option for several years with low interest rates and a buoyant property rental market. How much you can borrow depends on the lender and most lenders will lend up to a maximum 85% of the property price. This means you need a deposit of at least 15%. Deals become more competitive if you can put down 20% or 25%.
A lender will also take into account how much money you earn in rent from the property. The formula varies but as a rule the rental income should be between 130% to 150% of the mortgage payment. So if your monthly repayments are £500, the income you should be £650 and £750. Some lenders will lend a multiple of your salary, say three times, plus half the rental income.
Whatever your circumstances our brokers will find the best deal for your specific needs from over over 200 lenders; banks, building societies and other lenders.