Buy-to-Let Mortgages

A couple meets with a realtor to finalize the purchase of their new home, indicated by a

Thinking of becoming a landlord?
A Buy-to-Let (BTL) mortgage is designed for property investors who want to rent out residential properties. Whether it’s your first rental or part of a growing portfolio, here’s everything you need to know.

What is a Buy-to-Let Mortgage?

A Buy-to-Let (BTL) mortgage is a type of loan designed for people who want to buy residential property and rent it out to tenants, rather than live in it themselves. It’s a popular option for property investors, aspiring landlords, and those building long-term income streams through real estate.

Key Features (Simplified)

You need a bigger deposit, usually 20% to 40%.
Most Buy-to-Let mortgages are interest-only.
Interest rates are higher than residential mortgages.
You pay more Stamp Duty on rental properties.
Lenders may check your income and credit history.

Happy young man in a red polo shirt smiling and pointing upwards in front of a blackboard.

Who is Buy-To-Let for?

Our services are ideal for individuals and families looking to make smart property investments, including:

Working professionals seeking reliable passive income
New property investors entering the market
Existing landlords expanding their portfolio
Savers looking to grow their wealth through property
Parents investing in a future home for their children
Retirees planning for steady income in later years

How Much Can You Borrow?

Your borrowing potential depends on a few key factors:

Your income and credit score
Estimated monthly rental income
Property value and location
The size of your deposit

Types of Buy-to-Let Mortgages

Interest-Only Mortgage

Pay only interest monthly; repay full amount at the end of term.

Repayment Mortgage

Pay both capital and interest monthly; own the property outright by the end.

Limited Company Buy-to-Let

Property is purchased through a company rather than personal name (tax advantages for some).

Let-to-Buy Mortgage

Rent out your current home and buy a new one to live in.

Step-by-Step: Buy-to-Let Mortgage Process

Check your credit score and financial status

Make sure your finances and credit are in good shape before applying.

Save for a larger deposit (usually 25% or more)

Buy-to-let mortgages require a higher deposit than residential ones.

Research areas with good rental potential

Choose a location where demand for rental property is high.

Get a Decision in Principle (DIP)

Approach a lender or broker to find out how much you can borrow.

Find a suitable rental property

Look for a property that fits your budget and appeals to renters

Apply for a buy-to-let mortgage

Submit your application along with property details and projected rental income.

Get Expert Protection Advice

Contact AAI Financials today for personalized guidance on protection plans that secure your future and loved ones.