Are Buy To Let mortgages cheaper than residential?
Buy To Let mortgages are typically about one percentage point more expensive than residential mortgages. One the main reason for this is that banks consider tenants as bigger risks than owner occupiers. In addition, some Buy To Let mortgages will have high arrangement fees, as much as 0.5% on the loan amount
Higher deposit. The minimum deposit is usually 30% of the property’s value – although in some circumstances it can be as high as 40%. First time buyer – If you are living at home and consider that buying an apartment to let is a smart investment to make, you need to take into account that you will lose your first-time buyer status. You are a first-time buyer only once. If you choose to make your first purchase a Buy To Let, you cannot later go back to claim first-time buyer status on a subsequent purchase.