IT’S MY FIRST BTL PROPERTY – HOW MUCH CAN I BORROW?

How much you can borrow will be dependent on the following factors:

  • Property history – if you have ever owned a property before
  • How much rental income the investment property will achieve
  • Your personal income
  • Your credit history
  • The deposit amount available

How much do I need to earn to purchase a BTL property?

  • High street lenders will require a minimum personal income of circa £25,000 per annum
  • Specialist lenders will not require a minimum income

Should I use a limited company to purchase a BTL property?

  • Purchasing a buy-to-let property through your limited company will enable you to borrow more money. However, we recommend discussing this with your accountant due to potential tax implications.
  • Details such as your income tax bracket will affect the level that you get stressed at by prospective lenders.

What deposit do I require for a BTL purchase?

  • You will need a minimum of 25% deposit for a buy-to-let purchase – some lenders may allow a 20% deposit but be aware that interest rates will be significantly higher for an 80% loan-to-value product.
  • The predicted rental income of the property will determine the amount you can borrow and impact the required deposit.