Buy-to-Let Mortgages

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.

Who is it 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

1.

Check your credit score and financial status

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

2.

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

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

3.

Research areas with good rental potential

Choose a location where demand for rental property is high.

4.

Get a Decision in Principle (DIP)

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

5.

Find a suitable rental property

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

6.

Apply for a buy-to-let mortgage

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

7.

Complete valuation, legal work

The lender will value the property,
and your solicitor will handle the legal process.

8.

Complete and
switch

Once approved, your new mortgage replaces the old one and you start benefiting from the new deal.

Scroll to Top