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Whitton House
20 Market Place
Newark
NG24 1EA

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Beginners Guide to Getting a Buy-to-Let Mortgage

buy-to-let mortgage

Property investment can be a great way to make some easy income - but before you become a landlord, you'll need a buy-to-let mortgage in order to purchase your rental property...

What is a buy-to-let mortgage?

Simply put, these are mortgages which are specifically designed for people who want to buy property in order to rent it out. They are slightly different to a standard mortgage that you'd get to buy a home.

You'll usually be expected to pay a higher deposit of around 25% - and this might be as high as around 40% for the best deals. This type of mortgage also tends to be more expensive than a standard version. 

Most buy-to-let mortgages are interest only, which means you don't have a monthly repayment. Instead, at the end of the mortgage term, you repay the original loan in full.

Is it illegal to rent a house without a buy-to-let mortgage?

If you can pay for the property outright and don't need a mortgage then there's no problem. However, if you do need a mortgage in order to pay for your rental property then you must be upfront about why you're purchasing the property when it comes to getting a mortgage.

What are the criteria for a buy-to-let mortgage?

As with any mortgage, the requirements will vary from product to product and from lender to lender. However, here are the main criteria that most companies will consider:

  • Do you already own a residential home?
  • Income
  • Affordability - your expected monthly rental income should be at least 125% of the monthly interest payments on your mortgage
  • Property usage
  • Credit history
  • Age
  • Whether you're based in the UK

Of course, there are always exceptions and it's a good idea to speak to a Mortgage Broker who will be able to help you find the best deal for your specific circumstances.

Book a FREE Consultation!

We'd love to help you find the right buy-to-let mortgage! To chat to one of our friendly advisers, book your free consultation today... ⬇️

How much can I borrow for a buy-to-let mortgage?

The amount you can borrow will also depend on the lender, the product and your personal circumstances, as listed above. However, your borrowing limit will largely be determined by the amount of rental income you expect to get.

Lenders normally need the rental income to be 25–30% higher than your mortgage payment.

We'd love to help!

Here at BB, we've helped hundreds of landlords find their perfect buy-to-let mortgage and we'd love to help you too! To speak with one of our expert advisers, book your free consultation today. 😊

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Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.


Ellen King

2019-09-04T15:53:10+00:00

Ellen King

Absolutely delighted with the service we received from Dean. The advice we received was timely and thorough; the service provided went above and beyond our expectations compared to other mortgage advisors we have used in the past and the whole application process was made straightforward and stress free. Overall, an excellent value for money service that I would highly recommend.

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.


Miss Knight

2016-03-22T17:24:36+00:00

Miss Knight

We would like to take this opportunity to thank you for your efforts in making it possible for us to purchase our first property.  You have been brilliant and your services have been friendly, helpful, swift and professional.  We cannot thank you enough and it has been an absolute pleasure working with you.  What is known to be a stressful time has been very smooth and I have yourselves to thank for this.

Mr L

Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

2016-09-13T12:38:09+00:00
Mr L hadn’t sold his house but had found the house of his dreams, we arranged a mortgage that allowed him to buy his new house without selling and a mortgage that was flexible enough for him to pay a large amount off when he sells his house.

Miss G

Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

2016-09-13T12:43:22+00:00
Miss G sold her house and had found a new house, it all looked straight forward but she had a historical bankruptcy which meant lots of lenders were declining her. We found her a mainstream high street lender that would offer a mortgage even with her previous bankruptcy.

Mr W

Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

2016-09-13T12:48:10+00:00
Mr W works abroad but wanted to buy a buy to let property, most lenders will require him to own and live in in a mortgaged property in the UK, however we found a lender that would lend at sensible interest rates for a new buy to let purchase.

Mr C

Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

2016-09-13T12:49:06+00:00
Mr C wanted to buy a student house in Lincoln via a limited company to take advantage of the income tax benefits of this. He spoke with other brokers and high street lenders all of which said it wasn’t possible. We found a building society who specialise in this with sensible fees and interest rates.

16 hours ago

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