Buy to Let Mortgages

For people who want to buy a second property as an investment, rather than as a home, buy-to-let mortgages are now widely available. However, the interest rates charged for them are higher than for your own home, and lenders often only give you 75 to 80% of the value of the property. The existing mortgage you have on your own home will determine how much lenders will be prepared to give you for a buy-to-let property.

The big question is whether or not the property market will go into freefall - leaving you with a second mortgage on a house that is falling in value and which, perhaps, you may not be able to rent out.