Buy to Let Mortgages

Buy-to-let mortgages are specifically designed for people who want to buy a property to rent out. Buy-to-let mortgages are usually more expensive than normal mortgages, but they could help you become a property investor. If you don’t own your own home outright, or with a mortgage, finding a buy-to-let mortgage will be hard.
Buy-to-let mortgages are generally arranged to either provide the borrower with an immediate income, or to act as a longer term investment. Accordingly landlords may prefer to keep monthly payments as low as possible by arranging an interest only mortgage. Or they may prefer to maximise equity for the future by arranging a repayment mortgage and reducing the debt over the years.

Recent changes to the ability to offset mortgage interest has meant some borrowers may prefer to arrange their portfolio into a limited company.

When landlords have 4 or more properties in their portfolio, they will be classed as a professional landlord and subject to more stringent checks when applying for a buy to let. This can sometimes mean arranging a mortgage is more difficult with certain lenders.
The other key points to consider include:
Interest rates tend to be slightly higher
The minimum deposit for a buy-to-let mortgage is usually a quarter (25%) of the property’s value, although some lenders now offer smaller deposit options at 15%
Interest only is widely available with the sale of the property as the repayment vehicle
First time buyers are accepted by some banks
Some lenders require a minimum income from the applicant
If you would like further advice and guidance regarding buy-to-let mortgages, please call one of our team who will be able to help you.

Ask us about Mortgage Plus

Take the stress out of your property purchase with our innovative Mortgage Plus service – we can fast-track your mortgage application, negotiate the purchase price and deal with estate agents, lenders and solicitors on your behalf.

A lifetime mortgage is a loan secured on your property. To understand the features and risks of a lifetime mortgage, ask for a personalised illustration.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
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