Cashback Remortgages · Buy-to-let
Buy-to-Let Deposits and Costs
Buy-to-let needs a bigger deposit than a home purchase and carries extra costs, including a property-tax surcharge on additional properties. Budget for all of it.
Upfront costs
- Deposit — commonly 25% or more of the value.
- Property tax with an additional-property surcharge (SDLT/LBTT/LTT).
- Product and arrangement fees, sometimes higher on BTL.
- Valuation and legal costs.
- Any works needed to make the property lettable and compliant.
Ongoing costs
Factor in management, insurance, maintenance, safety compliance, void periods and tax on rental income. These determine whether a let is viable, separate from the mortgage.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.