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Buy-To-Let Mortgages

Looking to invest in property and become a landlord? Our buy-to-let mortgages are tailored to meet your needs, whether you’re a seasoned investor or just starting out. Let us help you make the most out of your investment with our expert advice and competitive rates.

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FAQs

A buy-to-let mortgage is a type of mortgage used to purchase a property for the sole purpose of renting it out, rather than living in it. The borrower receives rental income from tenants, which is used to pay off the mortgage. This type of mortgage typically requires a larger deposit and the lender will assess the potential rental income to ensure it covers the monthly mortgage payments.

Investing in property and renting it out as an investment is a popular choice for many, and buy-to-let mortgages are designed specifically for this purpose. Regardless of whether you’re a first-time landlord or an experienced investor, these mortgages can be suitable for you. However, keep in mind that buy-to-let mortgages usually require a higher deposit compared to regular residential mortgages, usually over 25%.

When it comes to their structure, buy-to-let mortgages are similar to traditional mortgages. However, buy-to-let mortgages usually operate on an interest-only basis. This means you only pay the interest on the loan each month, rather than paying both the interest and the balance. Typically, the balance of the mortgage is repaid when the property is sold.

The lending amount you’re eligible for depends on the value of the property and the projected rental income. Typically, lenders require the anticipated rental income to be at least 125% of your monthly interest payments. For instance, if your interest payments are £400 per month, they’d expect you to charge around £500 per month in rent.

Buy-to-Let mortgages are designed specifically for properties that will be rented out. If you’re looking to take out a mortgage for a property that you intend to live in, then a residential mortgage would be more appropriate.

The limit on the number of buy-to-let mortgages or the total amount of borrowing varies between lenders. Our advisors will take into account any other properties you own and find a suitable lender that matches your circumstances.

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We may charge a broker fee for mortgage advice. The fee can vary from £499 – £995 depending on your circumstances and the complexity of the case with a typical fee being £499. The fee will be agreed with you at the earliest opportunity and no fee is charged until offer stage.

Most buy-to-let mortgages are not regulated by the financial conduct authority