Buy To Let Mortgages
Expert buy to let mortgages that we’re proud of
Investing in property and getting buy to let mortgages is now more than ever a specialist sector.
With many ways to structure a deal, either in sole names, joint, through a limited company or a LLP there is now more than ever a need to work with specialist buy to let mortgage brokers.
How Do Buy To Let Mortgages Work?
As a first time or experienced property investor, you’ll know the importance of getting a good deal. An essential part of this should also include how best to structure and finance buy to let mortgages.
Here are some of our buy to let frequently asked questions:
Do you have a question about a buy to let mortgages?
If you have a question about a buy to let mortgages that is not covered here, please contact us.
How much can I borrow on a buy to let mortgage?
The borrowing amount on a buy to let mortgage will primarily be based on the amount of rent the property will achieve. Some lenders will also take into account outside income to help enhance the borrowing amount, but primarly it is based on the rental figure. An example is where a buy to let mortgage product allow you to borrow upto 75% of the value of the property. Despite this, if the rent is not enough (based on their calculations), then you won’t be able to get this entire amount.
The lender will look at many other areas to assess whether or not they will lend and the amount will still be limited in part by the loan to value of the product. You can use our buy to let mortgage calculators below to get an idea of how much you can borrow.
Are Buy To Let Mortgages more expensive?
The short answer is yes, but it depends whether you are comparing like for like.
You may get some residential mortgages which are more expensive compared to a buy to let mortgage, but this might be becuase the deposit is much less than the buy to let.
Generally speaking the more niche the type of lending you are looking for, the more expensive it is. This is becuase fewer lenders have an apetite to lend when it gets specialsit or complex as it requires a lender to have a specialism to deal with these types of cases and an ability to weigh up the risk associated with it.
Mortgage pricing is usually based on several factors; the type of mortgage (i.e buy to let or residential), your persona type (first time landlord, experienced landlord etc), the amount of the deposit you are putting down compared to the value of the property, and the type of product (i.e. fixed or tracker). All these factors (and many more) are used to price mortgages and will determine how much you pay.
How much deposit do I need for a buy to let mortgage?
Knowing how much deposit you will need for a buy to let mortgage is a good first step. However, the buy to let mortgage deposit amount can vary from lender to lender. Like anything rules can change, but to give you a guide, the typical buy to let deposit has always been about 25% of the purchase price. There are lenders that will allow as little as 15% or 20% deposits, but the less you put down the more expensive the deal wil be.
Its important to be aware that the buy to let deposit is only one part of the story. The rental figure the property will achieve is also critical and if the rental figure is not high enough, then a larger deposit maybe required.
Remember often the amount you can borrow (and therefore the deposit you have to put down) is dictated in a large part by the rental figure the property will achieve.
Try our minimum rent calculator to get an idea how much you can borrow based on the rental figure. Remember, this is a guide but to be really acurate it might be better to speak to one of our team.
Buy To Let Minimum Rent Calculator
Buy To Let Mortgage Calculator
Buy To Let Repayment Calculator
Buy To Let Guides
Service that’s about smiles not sales
We may be mortgage brokers, but we’re not a bunch of bankers! We are independent which means we only work for you. Our team are incentivised not on sales, but providing the best service for you.
- We assess
- You instruct us
- We research
- We find the best deal for you
Agreement In Principle
- You agree to the deal
- We submit the first stage of your application
- You get an agreement in principle
- We submit the second stage of your application
- We present your application in the best possible manner
- They assess your situation
- We support you throughout the process
- They assess your property
- You receive your mortgage offer
- Technically our job is done but we also like to help
- We liaise with solicitors and estate agents
- We keep you updated
- You achieve your goals