Investing in property
Buy To Let Mortgages
Our buy to let mortgages could help you make a success of your investment, whether you’re a first-time buyer or building up your property investment portfolio.
We Search 1000’s of Buy to Let Mortgage Deals to Save you Money!
Buying to Let
A buy to let mortgage is what you’ll take out if you plan to buy a property to rent it out. If you rent out your property, you become a landlord and have legal responsibilities to carry out. Buy to let mortgages often cost more than residential mortgages but you can use them to earn a profit.
The amount you can borrow with a buy to let mortgage depends on how much income you expect to get in rent. You often need a monthly rental income of 25 to 45% more than your monthly mortgage repayments.
Many lenders ask for at least £25,000 in rental income. Others may not ask for a minimum at all. If you’re a first time buyer, a lender is likely to consider your gross salary when you apply for a buy to let mortgage. You’ll need a buy to let mortgage if you rent your property out.
If you already have a residential mortgage you’ll need to switch to a buy to let mortgage if you plan to rent it out.
What are the costs of buy-to-let mortgages?
Buy to let mortgages often cost more than residential mortgages. It’ll cost more because:
- You need a deposit of at least 25%
- The interest rate is higher
- Lender fees are higher
Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.
Speak to an expert?
YOUR HOME (OR PROPERTY) MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE, OR ANY OTHER DEBTS SECURED ON IT.
Investing in Property
Before You Apply..
Your age
Most lenders will require you to be 21 or over to apply for a buy to let mortgage and you’ll usually need a good credit score. Consult our advisors to find out more.
Your income
Some lenders will require a minimum income for a buy to let mortgage. Usually the minimum you need to be earning is somewhere around £25,000.
Deposit
For a buy to let mortgage, most lenders will ask for a 25% deposit, but this can vary – some lenders may ask for a higher amount, sometimes up to 40%.
Borrowing history
Lenders will look at your credit history to check you’re a reliable borrower. If you have a history of poor credit, you may want to improve your score first.
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We have access to over 90 lenders, from the major High Street banks, to smaller, specialised lenders, meaning we have scope to help more people than ever. Across these lenders, there are over 12,000 different deals, so why not allow us to manage the process of finding the most appropriate deal for you and your circumstances. It’s what we do!
