Buy to Let Mortgage Solutions from Expert Brokers

Purchasing a buy to let investment property comes with its complexities. From deposits to loan to value ratios, there’s a lot to navigate. As experienced brokers, we’re here to provide expert mortgage advice tailored to your situation. We work with lenders to get you competitive rates.

Whether you’re buying your first rental or adding to a portfolio, we’ll provide the guidance you need to buy your ideal investment property. Let’s get cracking!

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What Is A Buy-To-Let Mortgage?

A buy-to-let mortgage allows you to borrow money to buy a property to let that property out. This type of mortgage differs from a residential mortgage, as the purpose is to generate rental income and potentially profit from property value increases.

With a buy-to-let mortgage, you are essentially taking out a loan to buy a property to become a landlord. The mortgage lender will assess your ability to cover the mortgage payments through expected rental income from letting the property.

So in short, a buy-to-let mortgage enables you to borrow money to buy a property that you will then let out to tenants. This allows you to become a landlord and generate ongoing rental income from your property investment. The lender will expect you to have a strategy for letting the property before they will provide the mortgage.

Our brokers have extensive experience with buy-to-let mortgages, so we can guide you on the differences compared to a standard residential mortgage. We’ll help ensure you understand everything these mortgages entail before committing to the process.

What is a buy-to-let mortgage

Who is eligible for a buy-to-let mortgage?

Compared to mortgages for residential properties, buy-to-let mortgages have some different eligibility requirements you’ll need to meet:

  • Your Age: Most lenders will require you to be 21 or over to apply for a buy-to-let mortgage. Bear in mind that you’ll usually need a good credit score as well. Being younger doesn’t necessarily exclude you from getting a buy-to-let mortgage, but the lender will want to see evidence you can manage the responsibilities that come with being a landlord. Our brokers can talk through the age criteria different lenders have so you understand where you stand.
  • Larger Deposit: Lenders typically require a 25-30% deposit for buy-to-lets. This is higher than for residential properties.
  • Loan-to-Value Ratios: The loan-to-value (LTV) ratio is an important factor. Lower LTVs may mean lower interest rates.
  • Affordability: Lenders will assess your ability to pay the mortgage if properties sit vacant. You’ll need to cover costs like agent fees and repairs.
  • Rental Income: Rental income of around 125-145% of the monthly mortgage payment is often required.
  • Credit Score: Your credit file will be checked by lenders, so a good score is beneficial for securing a competitive mortgage rate.
  • Existing Portfolio: Some lenders may limit buy-to-let mortgages depending on the number of rental properties you already own.

Our brokers stay up to date on buy-to-let criteria from lenders regulated by the Financial Conduct Authority (FCA). We can assess your specific situation against key eligibility factors to determine the options available to you. If you are thinking about a buy-to-let mortgage, get in touch and we can discuss your eligibility.

Key benefits of working with us for a buy to let mortgage

Key Benefits of Working with Us for a Buy to Let Mortgage

If you are looking to secure a buy-to-let mortgage, there are a number of benefits to working with our team of expert brokers:

  • Our Expertise: We have extensive experience specifically with buy-to-let mortgages, so we understand the complexities and requirements inside and out.
  • Guidance: We’ll guide you through every step of the process and requirements. No need to figure it out alone.
  • Competitive Rates: We have access to exclusive buy-to-let mortgage products from our panel of lenders. This means we can get you the best possible deal.
  • Tailored Advice: Every client’s situation is unique. We’ll analyse your property investment goals, finances, credit, and more to provide advice tailored to your circumstances.

Our dedicated buy-to-let brokers are ready to help you secure the ideal mortgage for your next rental property purchase. Get in touch to start putting our expertise to work for you.

Kye Factors to Consider for A Buy To Let Mortgage Deal

When looking for a buy-to-let mortgage,
there are a few key factors you’ll need to think about:

#1 Deposit Amount

Lenders typically want a 25-30% deposit for buy-to-lets, which is larger than for residential mortgages. The deposit impacts your interest rate.

#2 Loan-to-Value Ratio

The LTV ratio compares the loan amount to the property’s value. A lower LTV usually results in better rate offers.

#3 Associated Costs

Remember to budget for expenses like letting agent fees, maintenance, repairs and periods without rent.

#4 Taxation

You’ll need to pay tax on rental income after deductions like agent fees and mortgage interest.

#5 Term Length

Consider if you want a 2-year fixed rate or 5-year fixed rate term. Shorter terms sometimes have lower rates.

#6 Repayment Type

Interest only or repayment mortgages have pros and cons depending on your goals.

Our brokers will help assess these factors when searching for your ideal buy-to-let mortgage deal. We’ll make sure you understand the complete financial picture.

The Buy to Let Mortgage Process

If you’re new to buy-to-let mortgages, it helps to understand the full process required to secure one:

  • Seeking Advice: Consult with a mortgage adviser like us to discuss your financing options and get expert recommendations.
  • Finding a Property: Work out your budget and search for a suitable investment property to generate rental income.
  • Mortgage Application: Submit documents like bank statements, earnings evidence, ID, and credit checks to apply.
  • Agreement in Principle: The lender will first issue an agreement in principle, stating what they’d potentially lend.
  • Solicitors: Appoint a solicitor to handle the legal side of conveyancing and contracts.
    Valuation and Surveying – The lender will value the property and do any required surveys.
  • Final Mortgage Offer: This is the final offer document stipulating the interest rate, term length and other mortgage costs.
  • Completion: Once all contracts are signed and mortgage details finalised, completion can take place.

Our dedicated buy-to-let mortgage advisers are on hand to guide you through every step, from assessing your eligibility right up to completion.

The buy to let mortgage process

Why Work With Us?

Purchasing an investment property to let can be an exciting yet challenging process. You want reassurance that your buy-to-let mortgage broker will provide exemplary service and advice from start to finish. 

At our brokerage, our team lives and breathes buy-to-let mortgages. We are obsessed with helping landlords secure the very best mortgage deals. Here’s a deeper look at why you should choose us:

Fully FCA Regulated

We are authorised and regulated by the Financial Conduct Authority (FCA), the official regulatory body for financial services firms in the UK. You can trust you are working with a fully compliant and ethical brokerage.

Buy-to-Let Mortgage Specialists

We focus specifically on mortgages, especially buy-to-let mortgages for landlords and property investors. Our brokers immerse themselves in the buy-to-let marketplace daily, staying on top of lender regulations, new products, tax changes and more.

Established Relationships with Lenders

Over our many years broking mortgages, we have cultivated strong relationships with leading lenders like Lloyds, Santander, NatWest and more. This means we can leverage these relationships to negotiate the most competitive rates on your behalf.

Guidance on Ever-Changing Regulations

Staying compliant with legal regulations and tax rules is crucial as a landlord. Our brokers stay up-to-date on changes so we can proactively advise you as policies and legislation evolves.

Access to Exclusive Buy-to-Let Mortgage Deals

Our panel of lenders provides access to special buy-to-let mortgage products and rates not available going direct. This means we can source exclusive deals to optimise your financing.

Ongoing Support Until the End of the Term

From initial consultation through to completion and beyond, our expert brokers are by your side providing support and guidance each step of the process. Even after securing your mortgage, we are here to assist until the end of the mortgage term.

Whether you need a repayment or interest-only mortgage, our brokers will find the optimal deal to match your current financials and future plans. Contact us today to get started on financing your next buy-to-let investment property!

FAQs On Buy-to-Let mortgages

Buy-to-let mortgages require larger deposits, have higher interest rates, and lenders assess rental income potential. Residential mortgages are for owner-occupiers rather than letting out the property.

The best buy-to-let mortgages can be cheaper for a let property, but not always.

Buy-to-let rates are often lower as they’re less risky. You’ll need a bigger deposit though.

Tax relief on buy-to-let interest repayments can make them cheaper too.

So shop around, compare rates, and factor in fees. Buy-to-let can work out cheaper with the right deal.

Check your current mortgage terms. Most don’t allow families to occupy a let property long-term.

The best buy-to-let mortgages are for properties solely rented out. Using it as a family home could be considered mortgage fraud.

Occasional short stays may be fine. But talk to your lender if the family will regularly occupy the property. You may need consent or even a new standard mortgage.

So check documents carefully. Notify the lender of any extended family stays in your buy-to-let. Breaching terms risks repossession.

You’ll typically need proof of income, existing property ownership, ID, and details of the rental property. Check with each lender for their specific requirements.

Yes, most lenders offer buy to let mortgages on new builds. You’ll usually need a bigger deposit of around 25-30%. New builds can be riskier for lenders.

Yes. Most lenders will check your credit file and score. Good credit means better mortgage rates. Defaults or missed payments make approval less likely.

It’s possible but challenging. Lenders want experience of managing a rental property. First-time buyers usually need a bigger deposit too. Talk to a broker to assess your options.