Buy-to-Let Mortgages

Whether you’re a first-time landlord or a seasoned professional with a property portfolio, we can help you find the right buy-to-let mortgage

Can I get a buy-to-let mortgage?

Buy-to-let mortgages are a special type of home loan designed for people who have invested in property with the sole intention of renting it out, rather than living in it themselves.

How do buy-to-ley mortgages work?

A buy-to-let mortgage is a type of mortgage specifically used to purchase a property – such as a house, flat or apartment – that has been bought for the sole purpose of renting out to others.

What are the different types of buy-to-let mortgages?

There are a few different types of buy-to-let mortgages available to landlords, developers and property investors, and each type has its advantages and disadvantages.

What is a Buy-to-Let Mortgage?

A buy-to-let mortgage is a special type of mortgage designed specifically for people who invest in property to rent out, rather than live in. As most lenders won’t finance rental property purchases with standard residential mortgages, you’ll need a buy-to-let mortgage instead.

Most lenders view buy-to-let borrowers as riskier than owner-occupiers, so buy-to-let mortgages tend to cost more, in terms of higher interest rates and larger deposit requirements. Arrangement fees are usually also higher, while lending criteria is often different to a standard mortgage.

Why do I need a Buy-to-Let Mortgage?

Residential mortgages are intended only for owner-occupiers, so if you’re buying a property to rent out, you’ll need a buy-to-let mortgage instead of a standard one.

Because buying a rental property is seen as a business transaction, there are some important things to bear in mind when it comes to taking out a buy-to-let.

Firstly, most buy-to-let mortgages aren’t regulated by the Financial Conduct Authority in the same way residential mortgages are, which means you won’t be able to claim compensation if you believe the mortgage was mis-sold. Also, most buy-to-let mortgages are interest-only, which means you’ll pay only the interest each month rather than paying down any capital. You’ll repay the debt in full only when you sell the property.

And while standard mortgages are based on your income, the amount you can borrow for buy-to-let will depend on the property’s projected rental yield. This will typically need to be around 25% higher than your monthly mortgage payment.

Finally, some buy-to-let lenders may insist you own a residential property already and have made at least 12 months of problem-free mortgage repayments on it before they will accept you for a buy-to-let mortgage.

How can I get a Buy-to-Let Mortgage?

If you have struggled to find the right buy-to-let mortgage for your needs, you’re in the right place. My Mortgage Pro can connect you to an expert mortgage adviser from our parent company James Alexander FS who can give you the right advice to suit your circumstances, before finding a specialist lender and the buy-to-let mortgage that’s right for you. 

So, whether you’re a novice landlord or have an established rental property portfolio, get in touch today. We’ll hook you up with an authorised and regulated mortgage adviser who specialises in buy-to-let mortgages and can find the best lender and mortgage deal to meet your needs. For more up to date information surrounding mortgages check out out news page here.