However, for buy to lets these checks tend to not be relevant, because they are classed as a business in most circumstances rather than a residence, for obvious reasons. Therefore, without the need for a minimum equity or income amount, and with the goal in mind of potentially maximising monthly income it is a far more common in this scenario. Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Since the time of endowment policies residential interest only mortgages have remained available but less so than days gone by. They can work out to be more expensive overall because you hold more debt for a longer period (whilst being charged interest on it!) but they also mean the monthly mortgage commitment is significantly lower, allowing for overpayments (subject to lenders terms) or other commitments to be met.
Lenders often have additional requirements or checks to ensure you fit their own criteria, such as a minimum income for some lenders, or a minimum equity value in the property for others, but we would be happy to discuss and assess your options if an interest only mortgage would be of interest.
There is no guarantee that it will be possible to arrange continuous letting of the property,
nor that rental income will be sufficient to meet the cost of the mortgage.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1%, but a typical fee is £495.
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