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Looking for a Buy-to-Let Mortgage?
We can guide you through the requirements of Buy-to-Let mortgages and find the best deal for your investment.
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Experienced landlords or those just getting started
Are team aren’t just experienced mortgage brokers, but they are also landlord themselves.
Mortgage Calculator
Use our buy-to-let mortgage calculator to find out what you can borrow
Our calculator will give you an idea of what the banks will lend you. All banks are different so if you need an exact amount you can contact us for a definitive figure.
Buy-to-let FAQS
Banks normally require you to have a minimum deposit of 25% and they usually want the monthly rent to be 25% higher than your mortgage repayments. The lending amount is usually calculated from the expected rental income but other factors may also be used, depending on the bank.
Most lenders will require you to have some type of personal income to purchase a buy-to-let. In some cases, you might have to supplement your rental income with your personal income through “top slicing” to pass affordability checks.
If you plan to rent the property out to close family members (e.g. children, siblings, parents or grandparents) you can get a family Buy-to-let mortgage.
If you have a buy-to-let mortgage, you can’t live in the property.
If you have a family buy-to-let mortgage you can live in the property as long as you also have a paying tenant.
Setting up a business to purchase a buy-to-let, landlords allows you to declare rental income after deducting the mortgage. However, if you’re considering doing this is vital to research it thoroughly, as even with this tax saving you could end up far worse off.
Check out this article on Which for more information.
Buy-to-let Interest Rate Options
Interest-only and repayment mortgages each have distinct advantages and disadvantages for landlords. Here’s a breakdown to help understand the pros and cons of each option:
Interest Only
Interest-only mortgages are where you only pay the interest each month. These payments don’t reduce the size of the loan amount. For example, if you get an interest-only mortgage of £100,000 on a 20-year term, at the end of those 20 years, you’ll still owe £100,000.
Interest only Pro's
- Lower monthly payments.
Interest only Con's
- No build-up of equity
- Total interest paid can be higher than a repayment mortgage in the long term.
Some of these con’s can be avoided if landlords make over repayments.
repayment
This is where monthly repayments consist of repaying the amount borrowed as well as the interest so that the amount borrowed decreases throughout the term until it has been fully repaid.
repayment Pro's
- Build up equity.
- Total interest paid can be lower than interest only.
- Reduced risk, as the mortgage will be paid off you won't need to sell the property or refinance.
- Predictable costs
repayment Con's
- Higher monthly payments
Payments are higher compared to interest-only mortgages, which can strain cash flow, especially during periods of lower rental income, which gives landlords less flexibility.
how to decide?
Choosing between interest-only and repayment mortgages depends on individual financial circumstances, investment goals, and risk tolerance. Our mortgage advisors can advise you on the best option for your requirements.