You may choose to purchase through a company, in which case you would need to take out a limited company buy-to-let mortgage.
Mortgage availability and criteria also differs if you are based overseas, so your location should be considered before applying for certain mortgages.
This differs from a buy-to-let mortgage, which hinges on different factors such as the rental income you expect to generate from the property.
You will typically need to be receiving around 125 – 145% of your mortgage costs in rental payments.Lenders will also consider how many properties you have in your portfolio, as the more properties you own the more difficult it is to obtain finance.
If you own over 4 properties, you are considered a “portfolio landlord” and you will be subject to stricter regulations.Some lenders will stipulate that you can only have a certain number of properties in your portfolio.
Others base their decision on the loan to value ratio, and others demand that the ICR for every property be above a certain percentage.Most buy to let mortgage lenders would require you to be earning your own income too, this minimises their risk as you still have a possible way to afford mortgage repayments.Buy to let mortgages for first time buyers It is possible for first-time buyers to obtain a buy to let mortgage, but you may need a larger deposit.