A Mortgage specifically designed to allow the purchase or Re-mortgage of a BTL Property. BTL Mortgages are generally assessed on the expected Rental Income received on the property. A Lender will appoint a Valuer to carry out this assessment on their behalf. The Lender will then Stress Test this income against a higher rate than the Pay Rate of the mortgage product, using part of the income. This is to allow for Wear & Tear, as well as Rental Voids and future rate rises. The current rates as dictated by the PRA can be found here.
