What is a Buy to Let mortgage?
A buy-to-let mortgage is a mortgage sold specifically to people who buy property as an investment, rather than as a place to live. If you plan to rent out a new property, you will need a buy to let mortgage.
Not everyone is entitled to a BTL mortgage and most are more expensive than typical mortgages and they are likely to require a higher deposit.
If you have previously resided in the property that you are looking to let out, you will be treated as a Consumer Buy to Let Customer.
If you have more than four mortgaged buy to let properties you will be deemed a Portfolio Landlord.
Depending on your tax position, you may be considering purchasing an investment property via a limited company. This will be known as a special purpose vehicle (SPV) and you will need a specialised Ltd Company buy to let mortgage.
Buy to Let is not suitable for:
- People that do not have a large deposit, typically 25-40% of property value
- Clients under 21 years old
- First time buyers. Most lenders require you to be a homeowner but not all.
- Anyone whose income is less than £25000. In these cases, clients may be restricted to lenders that are available.
- Clients who want to reside in the property.
Buy to Let is suitable for:
- People with a large deposit
- Applicants over 21 years old
- Homeowners. First-time buyers may have limited options
- Anyone who has earnings in excess of £25000 per annum.
- Clients wishing to purchase a property for investment
How we can help
You must meet certain eligibility criteria. Lenders will use a rental affordability calculation to determine whether they think your buy-to-let mortgage is financially feasible. This may be affected by your income, tax band, deposit available and if you have any other mortgaged properties.
They are also likely to stress test to establish whether you will be able to keep up with repayments, interest rate fluctuations and possibly other expenses.
Our team of advisors have many years’ experience and can help you determine whether a buy to let mortgage is possible.
Buy to Let mortgage advice
Your local independent mortgage experts
- We understand complex cases and are specialists in this field
- We ensure that you understand the difference between private landlord and Ltd Company buy to lets
- You are likely to save time and money
Call us on 01780 480600Speak to an adviser
The Walden Family
We have used Choice Mortgages for the last 19 years, as it's not just a product they provide, but a fully invested service. They can always be relied upon to listen to your needs and find the solution that best works for you, whether that be with your mortgage or your protection policies. When my wife was diagnosed with multiple sclerosis, it was Choices that went the extra mile to help me sort through existing policies that were unsubstantial for our needs. They then helped us find the products that would be there when we need them.
They can always be relied upon to listen to your needs and find the solution that works best for you.
Their service is friendly, to the point of feeling like one of the family. They are always there for you on the phone if you have questions and I wouldn't consider using anyone else to put our needs first. When friends tell me that they are needing to change their mortgage or insurance policies, I say, “Go to Choice Mortgages.” I can't recommend them highly enough. A top class service that's with you every step of the way.
We can help your find your perfect mortgage
Our mortgage brokers have an unbiased view of the whole market
Based in Stamford, Lincolnshire
Providing mortgage and insurance advice nationwide.
Choice Mortgages is an independent mortgage broker; having access to thousands of mortgage and protection products on the market. Our office has been located in Stamford for over 20 years and we have a team of professional advisers with a vast amount of experience.
We offer a free no obligation consultation and help you find the most suitable solution. Understanding lenders criteria and how you are eligible for a mortgage is paramount.
We provide a dedicated personal service and work closely with you every step of the way; organising the paperwork and taking care of the entire application process, making the transaction far less stressful for you. We know lives are busy and we can alleviate the time pressure, by offering telephone or face-to-face appointments.About Choice Mortgages