Buy-to-let mortgage

Our independent and friendly advisers will work to understand your situation and the property/properties you are looking to let, to determine how much you can borrow, based on the amount of rental income the property/properties can generate.  

We are fully independent brokers, with whole of market access, allowing our advisers to select products from a comprehensive and established panel of lenders, including those not available through high street banks or providers 

This helps us ensure that our clients always receive tailored mortgage solutions at highly competitive rates. 

Our expert advisers can help with most types of buy-to-let purchases including: 

• HMO – Houses of Multiple Occupation 
• Freehold or leasehold 
• Through a limited company 
• Holiday lettings 

 

How to get a buy-to-let mortgage 

Our advisers are extremely experienced in working with landlords and property investors and can help you overcome the hurdles and hassles often associated with mortgage applications when looking to rent out a property. 

Starting with a free phone or video consultation, you will have a dedicated adviser, who will meet you to understand your situation and determine how much you can borrow in relation to how much rental income you will receive. They will discuss which products are suitable and then search the market for a solution to fit your needs. 

A further meeting will be arranged to discuss our findings and if you decide to go ahead, your adviser will make the mortgage application on your behalf and will manage all communications with the lenders for you, including chasing your mortgage through to completion. 

How much can I borrow? 

A buy-to-let mortgage is a type of mortgage for property investors, developers and landlords. It is different from a residential mortgage as it is taken out with the sole intention of renting the property to a tenant or multiple tenants, rather than, owner occupation. 

The amount a prospective landlord can borrow is very much dependent on the amount of rental income the property can generate but will normally come with the following requirements; 

• A 25%+ deposit is required by most lenders 
• Rental income should be a minimum of 125% of mortgage interest for a basic rate taxpayer and 145% for a higher rate taxpayer. Furthermore, the lender will also base their affordability calculation on a higher interest rate to reflect the risk that rates could rise. The test rate could be around 30% higher than the rate you would actually get if the mortgage is approved. 

Bridging Finance 

Are you eager to snap up your next buy-to-let property but worried about getting a mortgage in place in time to complete the purchase?  

Bridging loans are a way to borrow money in the short term to facilitate this scenario, ensuring you don’t miss out on the property you’re planning to purchase.   

Unlike mortgages, bridging loans can be arranged quickly if speed is important.   

They can be used for:  

• Buying a property at auction  
• Buying a house under market value where a quick completion is needed 
• Buying a property that is deemed unsuitable for mortgage purposes with mainstream lenders (e.g it has no kitchen or bathroom) in order to renovate it  
• Releasing equity from a property, for example to pay a tax bill or divorce settlement  

 

Types of bridging loans  

Closed bridging loans: provide a fixed repayment date. These will typically be used if you have exchanged contracts with a buyer but you’re waiting for the sale to complete.  

Open bridging loans: there is no fixed date when you’ll need to repay the loan. These could be used if you want to buy a house but haven’t yet found a buyer for your existing property, or you’re an investor and you are renovating a property to sell on, in order to pay off the loan. While there is no fixed repayment date, you’ll usually need to pay it off within one year. 

Interest rates  

Fixed and variable interest rate bridging loans are available. 

Considerations 

Bridging loans can offer an excellent short-term solution to raising capital. However you should be aware they’re often more expensive than a traditional mortgage and you will often need to pay additional fees such as administrative charges. Therefore, it’s highly advisable to seek professional advice before taking one out to consider if there are any better alternative solutions. 

Find out more 

Whatever your property investment situation, our team of expert and friendly advisers can help.  

We offer a free, no obligation consultation and are available to discuss your initial enquiry by calling 0800 978 8000, completing our enquiry form or email [email protected] 

 

*Please note your property may be repossessed if you do not keep up repayments on your mortgage. Some buy-to-let mortgages are not regulated by the Financial Conduct Authority.