BUY TO LET MORTGAGES

Helping you build a strong investment

If you’re looking to buy a property to rent out, whether it’s your first investment or you already have a portfolio, we’ll help you navigate the buy-to-let mortgage market. With the right advice, you can make the most of your investment and build a property portfolio that works for you.

What is a Buy-to-let Mortgage?

A buy-to-let mortgage is a type of loan specifically for purchasing property to rent out. Lenders assess these mortgages differently because the property will be rented out to generate income.

Fixed vs. Variable Rates

Just like with a residential mortgage, you’ll have the option of different types of rates. The choice depends on your short & long term investment goals.

Fixed – You’ll know exactly what you’ll pay, but may miss out if rates fall.

Variable – Your payments may go up or down depending on interest rate changes.

How is a Buy-to-Let Mortgage Calculated?

Most lenders require that the property’s rental income covers the monthly mortgage payments, by a minimum amount typically around 125% to 155%.

Typically, you’ll need a deposit of at least 25% of the property’s value, while lower deposits are available these can be costly on the interest rates.

Buy-to-let mortgages are interest-only, meaning you only pay the interest each month and the full loan balance is due at the end of the term. Some landlords find this a convenient way to manage their properties.

*You will need a sufficient RPV to repay the full loan at the end of the term.