Buy to Let Mortgages

What is a buy to let investment?

Getting an investment mortgage is more complicated than organising a residential mortgage so take expert mortgage advice. Call our qualified mortgage broking team on 01707 872000 to make the right mortgage choices.

We can advise you if you are purchasing your first buy-to-let property or want to review the mortgages available for your buy to let property portfolio. If you are planning to rent out a property rather than live in it, you will need a buy to let mortgage. This is a property investment where you become a landlord and earn rental income from renting out the property. A buy to let mortgage or ‘BTL’ is a loan secured against the property and it is your responsibility to pay the buy to let mortgage.

Errol Hall, Mortgage Broker and buy to let specialist, Cricklewood, North London

How does a buy to let mortgage differ to a residential mortgage?

A buy to let mortgage is assessed differently to a residential mortgage as the lender is mainly concerned about how much income your property will generate rather than your own income and expenditure, but lenders normally require you to be earning an income. Lenders generally need the rental income to be between 125% and 145% of the monthly mortgage payments.

As all mortgage lenders have different criteria for buy to let investments call our specialist buy to let mortgage broking team on 01707 872000 to find the most suitable buy to let mortgage for you.

Considering a let to buy?

If you move out of your own home and rent it out this is referred to as a let to buy, however you will still need a buy to let mortgage for your property.

You can ask your current lender to switch your mortgage or find a new lender offering a buy to let mortgage. Our mortgage brokers can assist you with ‘let to buy’ mortgages so contact us now.

Key considerations before taking out a buy to let mortgage

  • Understand UK legislation and regulation so you make the most tax efficient purchase. Remember the amount of tax relief for buy to let landlords will change in 2020.
  • Consider the type of property you want to buy, the area where you want to purchase and the type of tenants it appeals to.
  • Review your responsibilities and decide if you will manage the rental or pay someone to do this for you.
  • Remember interest rates on buy to let mortgages tend to be higher than residential mortgage rates.
  • Consider affordability. How much you borrow will be determined by the property value and expected rental income, but you may also have to pay maintenance costs or have an empty property when you won’t get rental income.
  • Minimum deposits for buy-to-let mortgages are generally higher than for the equivalent residential mortgage.
  • Arrangement fees can often be higher for buy to let mortgages.
  • You will pay income tax on any profit you make from renting your property, although certain costs associated with maintaining the rental can be offset against the rental income.

In summary...

To arrange a buy to let mortgage call our mortgage broking team for a free initial consultation on 01707 872000. We are experienced in setting up commercial mortgages and will offer you personalised buy to let mortgage advice. We work with buy to let clients in North London and Hertfordshire.

As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.

For expert buy to let mortgage advice contact our Mortgage Brokers

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5 Star Google Rating

An excellent service and a huge Thank You to my amazing mortgage broker, Richard Rushworth, from Brentwood. I had the pleasure of working with Richard in securing a remortgage and sourcing a new deal for a BTL. From beginning to end, Richard took the time to understand my situation and offered his advice on how best to proceed, he was very informative, responsive, extremely thorough and attentive to my financial needs and made sure that I was getting the best deal possible. I am grateful for the exceptional service that I received throughout the entire process. Richard's professionalism and knowledge of the industry was impressive and very much appreciated. He went above and beyond to ensure that all of my needs were met, worked very efficiently, answered all of my queries, explained the whole process clearly and made sure everything progressed smoothly. Richard is a true professional, very kind and personable and his calming nature most definitely helped alleviate all of the stress. He acts in his clients best interests and will always go that extra mile for a satisfactory outcome. Thank you Richard! You are a real gem and I absolutely highly recommend!!

Mr T, Brentwood, Essex