Buy to Let Mortgages
Buy, remortgage or release equity from your investment properties
Buy To Let Mortgages
Buy, remortgage or release equity from your investment properties
Loan Amount
£100k-£5,000,000
Loan Term
Up to 25 Years
Time to Funds
As Little as 30 Days
Interest Rate
From 2.95%
Buy to let mortgages to help you build your investment portfolio
Investing in residential property can be one of the best ways to maximise your returns and build long-term value. By taking out a residential buy to let mortgage you can unlock equity from your existing portfolio for further investment, or use the loan to purchase new properties.
Buy to let mortgages to help you build your investment portfolio
Investing in residential property can be one of the best ways to maximise your returns and build long-term value. By taking out a residential buy to let mortgage you can unlock equity from your existing portfolio for further investment, or use the loan to purchase new properties.
What is a buy to let mortgage?
A buy to let mortgage is a mortgage for property investors who are purchasing a residential property to let out. Properties can be houses, flats, HMOs or student accommodation. Buy to let mortgages can be taken out in personal names, or increasingly in Limited Companies for tax reasons.
The mortgage can be used to purchase the property, to refinance an existing mortgage, or to release equity from the property. You generally need a larger deposit than for home mortgages and the interest rates are normally higher. Typically buy to let mortgages aren’t regulated by the Financial Conduct Authority (FCA).
How does a buy to let mortgage work?
Lenders will need to verify that you can afford to meet the monthly mortgage repayments, as well as meeting other specific criteria. Once approved, they’ll send a valuer out to confirm the value of the building and then their solicitors will set about the legal work.
Recently completed Buy to Let Mortgages
- £630,000
- Residential BTL
- 2.99% fixed
- 57% Loan to value
- £1,200,000
- Residential portfolio
- 2.99% fixed
- 60% Loan to value
- £285,000
- Limited company BTL
- 3.29% fixed
- 75% Loan to value
How much deposit do I need for a buy to let?
Buy to let mortgages require a hefty deposit, and that should be a major consideration before the mortgage hunt begins. The amount that you’ll need varies, depending on what the lender thinks you’ll be able to afford, and what type of property you’re hoping to buy.
Usually a buy to let deposit will need to be at least 25% of the overall purchase price. That means lenders can lend up to 75% loan to value (LTV). Of course, many property investors hope to pay the smallest possible deposit, so it’s well worth shopping around to establish the amount that different lenders are able to offer. In some cases you may be able to fund the entire purchase price by offering a second property as security to a lender.
Do I qualify for a buy to let mortgage?
Each lender has their own set of criteria that you must meet in order to be considered for a buy to let loan. The list of eligibility checks that lenders use to decide whether or not to lend include assessments of your experience, income and credit history. They’ll also assess the type of property you’re buying, the quality of tenant and how much rent you’ll get.
Typically you’ll be eligible for a buy to let mortgage if:
- You own your own home. If you own other investment properties then this is a real plus.
- Your credit history is good.
- You can demonstrate a personal income of £25k or more.
- The rental income for the property covers interest-only repayments by at least 125%.
How quickly can I get a buy to let mortgage?
Arranging a buy to let mortgage is a will take a similar amount of time to arranging your personal mortgage. The process involves gaining approval, instructing valuers, and then the conveyancing process with solicitors.
Need advice for a buy to let mortgage?
Talk to one of our Business Finance Specialists. We’re on hand to take you through the options available.
