Buy-to-let mortgage deposits
As is the case with any mortgage, putting down a larger amount as a deposit could help you secure a better mortgage deal. Doing so could lead to lower mortgage rates, reducing your monthly mortgage repayments.
Generally, lenders will require a deposit of 25% of the property’s value, although others may accept a lower deposit if the rental income is right.
Buy-to-let mortgage tenancy agreements
If you intend to rent a property that will become a tenant’s home, it’s highly likely that your lender will insist on you having an Assured Shorthold Tenancy (AST). During the application process, your lender may ask to see a copy of this tenancy (if the property is currently tenanted).
