Buy-to-let
Buy-to-let mortgage advice
Buy-to-let mortgages are assessed differently from residential ones. Charlene can explain how lenders look at rental income, deposits and the property.
Advice by Charlene McGuire, mortgage and protection adviser with 25 years' experience, based in North Lanarkshire.
Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.
How lenders assess buy-to-let
Lenders usually focus on expected rent compared with the mortgage payment, as well as your personal income and experience. Deposits are often larger than for residential mortgages.
Costs and responsibilities
- Higher property taxes may apply to additional homes.
- Letting agent, insurance, maintenance and void periods.
- Landlord registration and safety obligations where you let.
- Tax on rental income, which you may want to discuss with an accountant.
Risks to consider
Rental income isn't guaranteed and property values can fall. Think about how you'd cover payments if the property were empty or interest rates rose.
Letting property in Scotland
Landlords in Scotland must register with their local council and use the Scottish private residential tenancy. An additional dwelling supplement on LBTT usually applies when you buy a further property. Charlene can explain how these affect your plans alongside the mortgage.
Local buy-to-let advice
Charlene is based in Muirhead and Chryston in North Lanarkshire and advises clients across Moodiesburn, Gartcosh, Glenboig, Stepps, Cumbernauld, Coatbridge, Airdrie, Glasgow and surrounding areas. Appointments can be face to face locally, or by phone or video if that suits you better.
Common questions
How much deposit do I need for a buy-to-let mortgage?
Lenders usually ask for a larger deposit than for a residential mortgage, often at least 25%, and they check the expected rent against the loan.
Do I need to register as a landlord in Scotland?
Yes. Landlords letting property in Scotland must register with the local council before advertising the property, and must meet ongoing safety obligations. Registration is needed for each council area where you let. Charlene can explain how this fits with your mortgage; your solicitor or letting agent can help with the registration itself.
What is the Additional Dwelling Supplement?
It is a supplement on Land and Buildings Transaction Tax, usually payable when you buy an additional property in Scotland, including most buy-to-let purchases. If you sell your previous main home within a set period, a refund may apply. Revenue Scotland publishes the current rates.
Should I buy buy-to-let through a limited company?
It depends on your tax position and plans. Some lenders have dedicated limited company buy-to-let ranges, often requiring all directors to guarantee the borrowing. Tax treatment differs from personal ownership, so it is worth speaking to an accountant alongside Charlene's mortgage advice.
Ready to talk it through?
Send an enquiry and Charlene will get in touch to understand your plans and explain what the next steps could look like.