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Buy To Let Mortgages

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Questions. Answered.

Below are a few common questions we get asked about buy to let mortgages that may be useful.

A Buy to Let mortgage is the type of mortgage you’ll need if you’re purchasing a property to rent out to a tenant. The amount you can borrow with a Buy to Let mortgage is mainly based on the rental income that the property is likely to bring in, whereas with a standard mortgage, lenders will look at your salary and outgoings.

You’ll typically need a deposit of around 25% of the property value to apply for a Buy to Let mortgage. However, some lenders will accept smaller deposits of around 15%, provided you can demonstrate the rental income is sufficient. Bear in mind that the bigger the deposit you can afford the better the mortgage rates you’re likely to get.

Buy to Let mortgage payments are calculated using the amount borrowed, the interest rate you will pay and the term of your mortgage. We can crunch the numbers and see what your monthly payments could be. Buy to Let mortgages are often arranged on an interest only basis, which mean the monthly payments will only cover the interest on the mortgage. It’s vital to work out how you’ll repay the capital, as this must be paid in full when the mortgage term ends.

No, Buy to Let mortgage rates are usually higher than standard residential mortgage rates. This is because lending on an investment property is considered a higher risk than lending to owner-occupiers.

When deciding whether you can afford a Buy to Let mortgage, you’ll need to consider not only whether you have enough savings to cover the deposit and any fees, but also how you’d cope if there were void periods. These are the times when your property isn’t let out and you must cover the mortgage payments yourself.

There are several costs you’ll need to factor in if you’re considering becoming a landlord. For example, you’ll usually have letting and management fees to pay as well as accountant and legal fees. As the landlord, you’ll also be responsible for the cost of property repairs and maintenance, plus any ground rent, water rates and buildings insurance. Remember too that any rental income you earn from renting your property will be liable for income tax.

There’s no fixed minimum or maximum amount you can borrow with a Buy to Let mortgage, although specific products may have specific loan sizes, so make sure you check before you apply.

Yes, you can apply for a Buy to Let mortgage in a limited company name. If you’re setting up a limited company specifically to purchase a Buy to Let property you should seek professional tax advice to help you decide whether this is the best course of action to take based on your individual circumstances.

Most lenders will typically allow you to overpay up to 10% of your mortgage capital each year without penalty. However, this can vary depending on the lender and the product you’ve chosen, so you’ll need to check the rules of your specific deal before you overpay.

Hot off the press.

We’re often asked to comment on the latest hot topics from across the property industry,
From mortgage top tips, to the best colours to paint your walls, some of our friends below:

Complete our 10 minute fact find online and we’ll be able to search our 100+ lenders quicker and call to talk you through it at a time that suits you.

Meet Jamie, our Insurance Guru.

Jamie is a specialist for all things insurance. Whether it’s life, income protection, critical illness or buildings and contents… Jamie is the guru.

Apply. Easy as 1, 2, 3.

Applying for a Buy To Let mortgage with mortgageable is easy. You can give us most of the information we need up front via out ‘fact find’. You can book a time for an advisor to call you… or you can start with a quick chat online.

Complete our quick online ‘Fact Find’ and we’ll match you to an Advisor.

Your advisor will scower over 100 lenders to find you the best deal.

Easy application via our online portal & dedicated admin support.

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