Buy to Let Mortgages

Whether it is your first time in the rental property market or if you’re an experienced portfolio landlord we are experts in the buy-to-let mortgages market and have an expert understanding of the buy-to-let market.

When looking to purchase your first rental property there are some important factors to take into consideration which could save you money in the long term such as tax implications and added stamp duty costs.


So unlike with residential mortgages where affordability is calculated using your personal income(s) minus outstanding credit commitments or any other monthly costs you may have, affordability for buy-to-let mortgages works in a completely different way.

Generally, the maximum loan-to-value for a buy-to-let mortgage is 75 % meaning you will need a minimum 25 % deposit.

The maximum loan amount is then calculated using the property’s anticipated monthly rental income with some other calculations in the background such as property management fees and potential interest rate to list a few.

For a new purchase, you will need to have an idea of the anticipated monthly rental income which can be provided by the estate agent and for remortgages a copy of the signed tenancy agreement and the last 3 months’ bank statements showing rental income received will be needed.

To maximise monthly profits, buy-to-let mortgages are usually taken out on an interest-only basis meaning the original loan amount remains the same throughout the mortgage term with you servicing the loan interest only. When taking out an interest-only mortgage you need to specify how the loan will be repaid at the end of the term. Usually, this is done by selling the mortgaged property at the end of the term.

Unregulated or Consumer Buy To Let?

The majority of buy-to-let mortgages fall into the unregulated category meaning they are not regulated by the Financial Conduct Authority (FCA) unlike residential mortgages as they are seen as a business transaction and therefore not protected by the FCA consumer regulations which aim to protect the general public.

However, there are some exceptions where a buy-to-let mortgage falls into the Consumer Buy-To-Let category meaning protection from the FCA is now in place.

Circumstances to qualify for a Consumer Buy-to-Let include when somebody inherits a property and becomes an “accidental landlord”.

Another scenario for a consumer buy-to-let is where you let your property out to an immediate family member.

It is important to be aware that certain lenders do not accept consumer buy-to-let applications and this is important to know before starting the application process.

Limited Company Buy To Let.

Since tax changes in 2015, more and more landlords are purchasing rental properties via the limited company route due to the many cost benefits involved.

One of the many cost benefits included certain tax reliefs available to limited companies which you will need to discuss with a qualified accountant.

Lenders assess affordability differently for applications via a limited company and usually have a range of specialist rates available for limited company applications which we can guide you through.

If you are planning on building a property portfolio then setting up a limited company is something that you should consider and again you should consult your accountant to receive advice on the many tax implications.

Specialist Buy To Lets.

In addition to the above, we are also experts in advising portfolio landlords which are classed as persons with 4 or more distinct mortgaged Buy to Let UK rental properties. Or seven or more for remortgage applications without capital raising.

Many high street lenders cap the amount of mortgaged buy-to-let properties you can have either with them or with other lenders, but as independent mortgage advisers, we work with lenders specialising in portfolio landlords with specialist products.

House In Multiple Occupation (HMO) is a property with 3 or more tenants that share facilities such as toilets and kitchens. These can be a good investment to diversify an investor’s property portfolio and again there are specialist lenders with specialist mortgage products for HMO properties.

We can also advise on holiday lets such as Air BnB etc so please contact us if you have a holiday let property enquiry.