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Buy to Let Mortgages

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Buy To Let mortgages are a popular way of buying property solely to let out. 
These mortgages are very different to a residential mortgage in the way they relate to the income derived from the tenancy.

Ask your adviser to explain.

All of our consultants are fully qualified and have access to thousands of buy to let rates so we can weigh up your options and find the best deal for you.

We will filter through all of the criteria and will find you a mortgage that enables you to maximise your investment by offering market leading rates.

As there is an increased risk to lenders, Buy-to-let mortgages often have slightly higher fees and interest rates compared to residential mortgages. The minimum deposit for a buy-to-let mortgages also tends to be higher at 15%.

The Valuation will also take into account the rental income as the lender will expect this to cover your mortgage repayment plus 125%

Frequently Asked Questions:

What is a Buy To Let mortgage?

A Buy to Let mortgage is lending on a property that is rented out to tenants.

Do I need a buy to let mortgage to rent out a property?

Yes (unless of course you're a cash buyer and don't need a mortgage at all). It's a specific type of mortgage based on the fact that you will not be residing in the property, and so is assessed differently to a normal mortgage. Unlike a residential mortgage, where how much you can borrow is based on your own income (among other things), a buy to let mortgage is assessed on the amount of rent as well as the value of the property.

How much deposit do I need?

As with any type of mortgage, the more you can put down as a deposit, the better the mortgage deal you could get. A lower mortgage rate means lower monthly payments and a greater margin between your rental income and your mortgage costs.

As a rule, you’ll need a deposit of around 25% or more of the property’s value, although some lenders will require as little as 15%, provided the rental income is sufficient
How much can I borrow on a Buy To Let mortgage?

A buy to let mortgage is mainly assessed on the rental income that the property is likely to generate.
Lenders will typically need the rental income to be at least 125% of the monthly mortgage payments (on an interest only basis) which means that means that if your mortgage will cost £900 a month, the rent will need to be at least £1,125 a month.