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Buy to let mortgages
Learn how you can generate an income from investing in rental property
Owning a property you let out can provide you both with rental income and the potential for capital growth. However, it’s not something that should be entered into lightly and there are risks involved. Our guides explain everything you need to know about buy to let mortgages and becoming a landlord.
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Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with a mortgage adviser at HUB Financial Solutions. Speak with a qualified, FCA-regulated adviser you can trust. HUB Financial Solutions is rated ‘Excellent’ on Trustpilot. Please note your home may be repossessed if you don’t keep up with mortgage repayments.
Understanding buy to let mortgages
Buy to let mortgages differ from residential mortgages as lenders will want to know how much rental income you expect to receive, and whether you’ll be able to cover your mortgage payments during periods when you might not have tenants. These articles can help you get to grips with all the buy to let basics.
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Want to speak to a mortgage adviser? Speaking to an experienced adviser can help you to understand your options and get a great deal on your mortgage.
If you’re looking for expert mortgage advice, you can get a free consultation with a mortgage adviser at HUB Financial Solutions. Speak with a qualified, FCA-regulated adviser you can trust. HUB Financial Solutions is rated ‘Excellent’ on Trustpilot. Please note your home may be repossessed if you don’t keep up with mortgage repayments.
Applying for a buy to let mortgage
Applying for a buy to let mortgage is similar to applying for a residential mortgage, although different eligibility criteria will apply. Here’s what you need to know if you want to boost your chances of your buy to let mortgage application being accepted.
Our buy-to-let mortgage calculator is ideal for first-time and existing buy-to-let landlords and can provide you with an estimate of how much you could borrow on a buy-to-let mortgage. Simply enter your expected monthly rental income to see how much you could afford to borrow on a buy-to-let mortgage.
Being a landlord
Owning a property you let out to tenants involves various responsibilities, so before entering into buy to let, it’s important you’re clear on what your obligations are, as well as what your tenant’s rights are.
Frequently Asked Questions about buy to let mortgages
Who is eligible for a buy to let mortgage?
You’re more likely to have your buy to let mortgage application accepted if you already own your own home, earn at least £25,000 a year, and have a sizeable deposit to put down. That said, it’s not impossible to get a buy to let mortgage if you don’t meet these criteria, provided you can demonstrate that the property can achieve a rental income equivalent to at least 125% of your mortgage payments.
What deposit do I need for a buy-to-let mortgage?
You’ll usually need a deposit of at least 20% or 25% of the property value to be eligible for a buy to let mortgage. Deposit requirements are higher for buy to let mortgages than standard residential mortgages, as they are considered riskier by lenders.
How many buy to let mortgages can I have?
You can have as many buy to let mortgages as you want – there’s no set limit. However, some lenders may have rules on how much they will lend to one individual. Bear in mind that when you apply for a buy to let mortgages, lenders will want to know about other rental properties you own, so it’s important to keep all your paperwork up to date.
Can I change my mortgage to buy to let?
It is possible to change a residential mortgage to a buy to let mortgage. However, it’s not quite as simply switching from a residential mortgage to a buy to let one, so you will have to remortgage to an entirely new product either with the same or a new lender. Whilst sticking with your current lender is likely to be the most straightforward option, you might be able to find better buy to let mortgage rates available elsewhere.