Buy to Let Mortgage in Scotland

As housing laws can vary between Scotland and the rest of England, it is important that you are aware of exactly how this could affect you as you search for a buy to let mortgage for a property in Scotland.

The main difference with a buy-to-let mortgage and a residential mortgage is that the lender as part of their underwriting process will take into account the rental income you will earn from the buy to let property as the main source of income. With lender criteria being stricter than ever typically there will be the need to get rental income verified by an independent party usually set at a minimum of 125% of the monthly interest payment on the mortgage. Interest will be based on the deal you select but will be based on the payment rate for fixed and tracker deals or the lenders standard variable rate plus a fixed percentage e.g. 1%. This is to provide protection for landlords in periods when they don't have tenants for their property and peace of mind for lenders that the borrower will not default on repayments.

For quotes and advice on your buy to let mortgage options use our specialist service - link at top of page.

One of the most important things to consider when searching for a buy to let mortgage in Scotland is the actual property that you intend to rent out.  It is important to consider the following:

• The property’s location – is it a popular area?
• The property’s features – will it attract tenants?
• The condition of the property – will it require a lot of maintenance work?

Doing local market research will help you get a feel for the area and by talking to local estate agents you can save yourself a lot of time and possibly money by getting these considerations right.