Buy to let

Buy To Let Mortgages have increased in popularity over recent years and London and the surrounding areas offer a great rental potential. The main reasons behind this are:

  • The potential for excellent long term capital growth
  • An additional source of income for retirement
  • High demand for rental accommodation in the London and surrounding areas due to an increasing UK population and a demand for young professionals to work in London
  • Having a property as an alternative investment to an existing investment portfolio
  • More lenders having entered the market leading to more competitive, specifically designed, accessible buy to let mortgages

Buy to let mortgages differ to ordinary residential mortgages in 3 main ways:


Lenders will assess your buy to let mortgage based upon the rent you are likely to receive as well as your income. In some cases your income is not considered.

interest rate

Buy to let mortgages tend to have a slightly higher interest rate.

larger deposit

Buy to let mortgage will typically require a minimum deposit of 25% of the property’s value.

When purchasing a buy to let property you will need to decide whether your primary objective is income or capital growth. Your decision may affect the type of property you purchase, the location and whether you opt for a repayment or interest only mortgage.

To find out more, call us on 01932 253939 or email us at © 2018. Bigmore Associates.