Buy to Let Mortgages to rent to family members rules – Information on Regulated Buy to Let Mortgages
If you want to buy a house and rent it to a family member such as your children (aged over 18 years), father, mother, brother sister, aunt and uncle then you will need to get a Regulated Buy to Let mortgage which is not very easy in the current mortgage climate.
At Niche Advice we specialise in this type of mortgage and have helped many clients invest in regulated buy to let mortgages.
Below are the key main criteria to get a regulated buy to let mortgage for one of our most popular products to give you an idea of what’s needed to get this type of mortgage.
Buy to Let Mortgage for properties rented to family members.
- Minimum income of £25,000 for at least one applicant (excluding state pension and other benefits).
- 60% loan to value, so you will need a minimum of 40% deposit
- Applicant must be an Owner Occupier (can be Mortgaged)
- 100% of the deposit must come from your resources (gifted deposits are unacceptable)
- Standard property construction
- Good level of affordability to maintain mortgage
- Mortgage term up to the applicants age of 75 Years
- London & M25 properties must have a value of over £300,000
- No more than 10 properties within their portfolio
- Rental coverage of 125% of the mortgage payment
Regulated mortgages are more complexed and to find out more information about this type of product please click on the below link:
If you’re thinking of letting a place to a family member it’s vital you disclose this information to the lender as not doing so may have serious consequences, ultimately as a landlord you will be held responsible, so it’s vital that you protect yourself by seeking professional advice on this subject.
For more information about Buy to let mortgage to rent to a family member please contact us on T: 020 7993 2044 or alternatively complete the online enquiry form.
Author: Payam Azadi
Payam Azadi is a partner at Niche Advice who are whole of the market Independent Finance Brokers In London. His role is very much focused on Property financing both on residential and commercial lines.