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How BTL Mortgages Work in 2022


As specialists in residential BTL mortgages and limited company BTL mortgages, we want to expand on our limited company buy to let mortgage FAQs to provide an overview of how BTL mortgages work in 2022. Read on to learn more about what you need to know about BTL mortgages.

What is a BTL mortgage?

Buy to let (BTL) mortgages are aimed at those who want to buy a property with the aim of renting it out, as opposed to living in it. The rules around BTL mortgages are similar to those around regular residential mortgages, but there are some key differences.

What are the differences between a BTL mortgage and a regular residential mortgage?

Typically, residential mortgages require repayments of both the loan and interest each month. With BTL mortgages, however most landlords choose an interest-only mortgage where they only pay interest repayments, which is a considerably lower payment compared to those with residential mortgages. At the end of the BTL mortgage, the landlord is required to repay the mortgage in full, which they usually do by selling the property.

Can I live in a BTL-mortgaged property?

You cannot live in a your own BTL-mortgaged property as these mortgages are intended for landlords.

Are buy-to-let mortgages regulated?

Yes – and we are authorised and regulated by the Financial Conduct Authority (FCA) with FRN number 674204. We treat our customers in compliance with the strict criteria laid out by the FCA, whose primary aims include the protection of consumers.

Why use a limited company for a BTL mortgage?

Owning a property through a limited company may provide you with certain tax benefits and reliefs. What’s more, you are afforded some additional privacy, as the limited company will own the property meaning your name can’t be held liable for tenant debts which could affect your credit file.

For more information, see our limited company buy to let mortgage FAQs.

How many BTL mortgages can I have?

There is no strict limit to how many BTL mortgages you can have for your portfolio.

FC Funding are experts in BTL mortgages

Whether you are looking to add a BTL property to your portfolio or remortgage your current BTL mortgage onto a new deal, FC Funding are a BTL Mortgage broker with wide ranging expertise in all areas of commercial lending and facilities.

As a top commercial mortgage broker in the UK with years of experience in the financial sector, we can help you sift through the various options available for your BTL mortgage, especially as many different lenders offer both interest only and capital and interest repayment BTL mortgages.

Should you require further information, please don't hesitate to get in touch via our website or call First Commercial Funding Limited on 01202 937880.

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