As a contractor in the UK am I eligible for a buy to let mortgage? image

As a contractor in the UK am I eligible for a buy to let mortgage?

As a self-employed person in the UK, maybe you faced some frustration or dead-ends the last time you tried to get into a buy-to-let mortgage, and now you are asking yourself, am I eligible for a buy-to-let mortgage or not? We understand how you feel. When it comes to mortgages and other lending matters in general, it can often seem like those in traditional employment have the edge over the self-employed. If you are a contractor and you have always dreamt of having a rental property in the UK, we have the answers for you. Although, we must admit that securing a buy-to-let mortgage approval as a contractor or self-employed person can be a tricky process if you do not have a reputable and trusted mortgage brokerto guide you. If you are in this criteria, please keep reading because below, we will do our best to answer some of the key questions that you may be asking about buy-to-let mortgages.

But first, we'll start by answering the most important question that brought you here:

What is a buy-to-let mortgage?

Buy-to-let mortgages, otherwise known as BTL mortgages, are a specific kind of mortgage arrangement for people who seek to buy property for investment purposes instead of buying a property as a personal residence.

Am I eligible for a buy-to-let mortgage in the UK?

The short answer is yes. However, most lenders ask you to fulfill certain conditions first. So, be prepared to undergo some assessments just like any other person would (including even full-time employees when applying for a buy-to-let mortgage).

What are some vital differences between buy-to-let mortgages and ordinary mortgages that I need to know beforehand?

There are a few key differences between buy-to-let mortgages and residential mortgages. Here are the most important differences that you need to know:

Another feature of buy-to-let mortgages is that most of them have a different repayment schedule compared to the typical residential mortgage. With the majority of buy-to-let mortgages, repayment tends to be interest-only. Meaning that every month, you pay the monthly interest but not the capital amount. Then at the end of the mortgage term, you repay the originally agreed loan amount in full.

For a first-time landlord, we know that all this will sound a bit confusing. So, don’t hesitate to get in touch with us right away for free advice. You can also start making your findings to understand your financial position better and your chances of securing an approval by using our user-friendly mortgage calculators.

BTL calculator for individuals
Important tips to help make the transaction successful

Watch out for the following issues that can derail your property investment goals:

The final take-away

Certainly, buy-to-let mortgages come with their own unique challenges but, with careful planning, they can offer you several benefits. Start off on the right foot by partnering with us at Wismortgages. We are digital mortgage lenders who understand the needs of self-employed customers and contractors like you. Contact us for free advice and let a member of our friendly and professional team help you through from start to finish.

At Wismortgages, we know that a mortgage can be a complicated matter that is why over the years we have taken the time to put together various Guides that offer you different types of relevant information about mortgages and related matters. In addition to buy-to-let mortgages, we offer guidance and information regarding other categories of mortgages such as SPV(Special Purpose vehicle) mortgages, expat mortgages, contractor mortgages, remortgages, limited company mortgages, and mortgage insurance.

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Read up any of our mortgage guides for comprehensive insights and answers to your mortgage questions.

Also, remember that as a mortgage is secured against your home/property it may be repossessed if you do not keep up with the mortgage repayments.

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