What is a Regulated buy to let mortgage?

A Regulated mortgage to rent to a family member is required. What does this signify? It means the Financial Conduct Authority regulates a mortgage, giving additional protection. Most buy-to let mortgages are considered to be commercial, or a company. They are therefore not normally regulated by financial conduct authorities.

Are buy to let mortgages allowed?

Buy to let mortgage aren’t usually regulated. This could lead to advisors who have no qualifications or experience. They might not be licensed by the financial authority as we are. But they will be regulated if the property is being rented to family members.

Are You Required to Provide Proof of Income for Buy-To-Let Mortgages?

A Regulated or Unregulated buy-to-let mortgage lender will assess your application based the rental income you expect to earn from the property. This is mainly determined by how much rental income you can expect. You should also consider what the Surveyor at the lender thinks the property is capable getting. The lender will assess your income in order to approve a buy-to-let mortgage. This is done to ensure that you can afford to repay the mortgage if tenants don’t pay. Because it is unlikely you would evict your family. However, it is possible to evict your family members if they don’t pay their rent.

Is it possible to rent to your family member with a Buy to let mortgage?

Yes. A Buy to let mortgage will become more regulated. You can regulate a mortgage if you want your family member to be able to live in the home, whether they pay rent at the market rate or not. This means that you will require a Regulated Financial Advisor.

Can You Live in a House with a Buy to Let Mortgage?

Lenders won’t let you live in a property you have taken out for a rental. It was originally taken out to serve a purpose. Your lender will be able to help you change the property to residential. They might want to change the type and term of your mortgage.

Can I buy the house of my parents and then rent it to them?

You might be eligible, but only if you have a regulated buy to let loan. Instead, you could purchase the property to let the owner continue to live in it as their second home. This would require a residential mortgage. However, you could buy a property that isn’t used by your parents and rent it out to them. This would be considered a regulated loan.

Regulated Mortgage Calculator

There are many factors to consider when determining how much loan you can get. We don’t have a regulation buy to let mortgage calculator. We are happy to give you an estimate if we have the time and you are willing, even if it is only for ten minutes.

Non-Regulated Purchase to Let Mortgage

This is a normal buy-to let mortgage. Most Buy to Let Mortgages do not fall under the jurisdiction of the Financial Conduct Authority. It does not usually require a regulated buy-to-let mortgage if the property will not be used for business purpose.