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Buy-to-Let Mortgages

Whether you’re a first-time landlord, looking to add another property to your portfolio or simply remortgage a buy-to-let property- You’re in the right place!

We can help you find the right buy-to-let mortgage, with expert guidance and support every step of the way. 

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What is a buy-to-let mortgage?

A buy-to-let mortgage is designed for people who want to buy a property to rent out or build a property portfolio. 

The right buy-to-let mortgage will depend on your circumstances, the rental property you’re looking to buy and the property’s potential rental income. 

How do buy-to-let mortgages work?

Buy-to-let mortgages are similar to residential mortgages but with some key differences. 

Fees are higher: The fees associated with buy-to-let mortgages are typically higher than those for residential mortgages. This is because lenders view buy-to-let mortgages as riskier, as there is a greater chance that the borrower will default on the loan if they are unable to find tenants. 

Interest rates are higher: The interest rates on buy-to-let mortgages are also typically higher than those for regular mortgages. This is again because of the increased risk involved. 

Minimum deposit is higher: The minimum deposit required for a buy-to-let mortgage is usually 25% of the property’s value. This is compared to 5% or 10% for a regular mortgage. 

Most BTL mortgages are interest-only: This means you only pay the interest on the loan each month. The capital (the amount you borrowed) is not repaid until the end of the mortgage term. This can be a great option for investors who want to maximize their rental income, but it is important to make sure that you have a plan in place to repay the capital at the end of the mortgage term. 

What are the pros and cons of buy-to-let mortgages?

Becoming a landlord isn’t a decision to be taken lightly;

There are many things to consider, such as the cost, keeping up to date with regulations and tax implications. 

Here are some of the benefits of being a landlord 

  • Potential for income: Owning rental properties can be a great source of income, but only if the rent you charge is more than the costs associated with owning and maintaining the property.
  • Good investment: The value of the property may increase over time, meaning, the value of your rental property could be higher when you sell than when you bought it.
  • Tax relief: Landlords can claim tax relief on some of their expenses.
  • High demand for rental properties: Demand for rental properties is high, you should find a tenant if you’re charging the right rent, your property is well-maintained and in a good location.

The decision of whether to invest in buy-to-let is a personal one.

It is important to weigh up the pros and cons carefully before deciding. You’re in safe hands our experts will help support you every step of the way. 

Here are some of the considerations 

  • Rental loss: Buy-to-let can be a risky investment. There is chance that tenants may not pay their rent, or that the property may become vacant for periods of time. You need a contingency plan in place to ensure you can still afford your mortgage payments if you experience rental loss.

  • Higher interest rates: Buy-to-let mortgage rates are generally higher than residential mortgages.

  • Income tax & Capital gains tax: You will need to pay income tax on any rental income you receive, and you may also need to pay capital gains tax if you sell your buy-to-let property for a profit.

  • Additional costs: There are several extra costs you need to budget for such as mortgage payments, maintenance, insurances and letting fees. You’ll need to make sure your rental income can comfortably cover your mortgage payments and these costs.,

  • Regulations: The government has introduced several new regulations for buy-to-let landlords. The property must be kept up to a high standard and comply with certain EPC ratings to qualify for renting it out to tenants.

Why Choose Us for Your Buy-to-Let Mortgage?

Attractive rates and exclusive deals

We have access to a wide range of buy-to-let mortgage products, so we can help you find the one most suited to your needs and portfolio. We will consider your financial situation, your investment goals, and the properties in which you are interested.

Expert advice

Our team of buy-to-let mortgage experts will walk you through the process step-by-step, providing you with personalised guidance throughout the mortgage journey.

Hassle-free application

We take the stress out of applying for a buy-to-let mortgage. Our team of experts will manage everything for you, from start to finish.

We’ve got you covered

We will identify the right level of landlord protection you need and arrange this for you.

Free service

Our mortgage service is free of charge, so you can save money on unnecessary fees. Fees from third parties may apply.

Dedicated customer support

We have a dedicated customer support team that is available seven days a week to answer your queries.

Let’s find the right buy-to-let mortgage for you.

Our friendly and experienced advisors will be happy to help you find the most suitable buy-to-let mortgage for your needs.

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Buy-to-Let FAQs

Determining whether buy-to-let is worthwhile depends on your unique circumstances and goals. Factors like property cost, rental yield, and potential risks, including the purchase price and void periods, should be carefully considered.

The minimum deposit for a buy-to-let mortgage is usually around 25% of the property's value. However, some lenders may accept lower deposits, such as 15% or 20%, depending on your situation and the lender's policies. It is important to note that the loan-to-value ratio (LTV) will be higher with a lower deposit, which may result in higher interest rates and stricter lending criteria.