Buy To Let (BTL) Mortgage Broker

Looking for a buy to let mortgage? We offer solutions for landlords looking to purchase or re-mortgage buy to let properties. A buy to let mortgage allows a person or business to borrow money to buy a property as an investment. The one stipulation is that the property must be rented out and cannot be lived in by the owner. There are several buy to let mortgage lenders to choose from and buy to let interest rates change regularly, so an experienced mortgage broker can be invaluable in finding the right deal for your circumstances, especially if you are a buy to let first time buyer.

Buy to Let mortgages can be used to buy any type of property that will be let to tenants, which means you become the landlord. As a landlord, you will have certain responsibilities for maintaining the property and following all safety regulations. In addition, you will need to find tenants and charge them rent. A letting agent can do this for you but remember this will incur additional costs. 

Buy to Let mortgages are usually interest only, so the monthly payments only pay off the interest on the loan. This means that the monthly payments will be lower, but at the end of the mortgage term, you must either pay off the loan in full, sell the property or remortgage it. Repayment mortgages are uncommon. 

Generally, the amount you can apply for on a buy to let mortgage depends on the rent you are likely to get, not your personal income. The predicted rental income should be 125% of the mortgage payments, and the deposit amount will often be higher than a residential mortgage, at a minimum of 25% of the property value. You will also have to meet certain landlord criteria, for example tenancy law and complying to all safety regulations.

There are a number of types of buy to let mortgage, including:

Interest only - the interest is the only part of the loan being paid, meaning that you need to pay off the capital by the end of the mortgage, which can be achieved by remortgaging or selling the property.

Fixed rate - the sum repaid is at a fixed interest rate for a period of time, usually between 2 and 5 years, which can be useful to help you budget your outgoings. After the fixed period, interest reverts to the lender’s standard variable rate for the rest of the mortgage unless you complete on a new mortgage deal.

Variable rate - the monthly interest base rate is set by the lender and adjusted monthly or annually, meaning that it can go up or down.

Tracker rate - the interest rate tracks the Bank of England’s base rate, meaning it can go up or down.

Discounted rate - a form of variable mortgage, for a set period of time the interest rate is set just below the lenders standard variable rate. 

Your property may be repossessed if you do not keep up repayments in line with the lenders schedule. Think carefully before securing debt against any property.