FAQs

What is a buy to let Mortgage?

A buy to let mortgage is a mortgage for purchasing residential property with the specific aim of letting it out to tenants. 

Is it difficult to get a buy-to-let mortgage in the current market? And what rates like at the moment? Can I still get a mortgage with a 25% deposit?

It depends on your individual circumstance, but in general, there are plenty of buy to let mortgage options out there with well over 1,000 products on offer, nearly a quarter of which are available...

How many buy-to-let mortgages can I take out with one lender?

How many buy-to-let mortgages can I take out with one lender? I have one property at the moment and I am considering another. Should I ask my current buy-to-let lender or is it better to spread it...

What is an HMO?

An HMO (House in Multiple Occupation) is a house where multiple, unrelated tenants have exclusive access to their rooms and share common living areas, such as a kitchen or bathroom. The property ca...

When borrowing via a Ltd Co will lenders ask for the director's bank statements?

When borrowing via a Ltd Co will lenders ask for the director's bank statements?Yes. Lenders generally want to see the last three months’ personal bank statements for all directors. You may also be...

I am concerned that because I have been in arrears I might not be able to get another mortgage.

I am currently going through the courts to get my tenants evicted for non-payment of rent. They owe six months’ rent and now I have gone into arrears with my lender as I can’t afford to cover it. W...

I’ve found a property I’d like to buy but it needs work before it can be let out, can I get a buy to let mortgage?

No! Buy to let mortgages are only available on properties that are immediately habitable. If the property requires improvements before it can be let you may have to take out bridging or refurbishme...

Is now a good time to invest in buy-to-let?

I keep reading in the press that the number of tenants looking for properties to rent is increasing. Is now a good time to invest in buy-to-let? Only you can decide if now is a good time for you to...

I have 16 buy to lets; am I exempt from the new 3% stamp duty surcharge?

When the original announcement was made in the Autumn Statement by the Chancellor, he proposed that investors with 15+ properties might be exempt from the 3% stamp duty surcharge when making purcha...

Are buy to let mortgages regulated?

As a commercial (not consumer) transaction buy to let mortgages are not regulated by the Financial Conduct Authority; however, from 21 March 2016 this will change for any transaction classed as Con...

I’m looking to take out a buy to let mortgage via my Ltd Co. Could you confirm what security is required?

I’m looking to take out a buy to let mortgage via my Ltd Co. Could you confirm what security is required?The lender will take the property you are buying as security.  The lender will also ask for...

Are there any lenders willing to take us on, or are we too old?

My husband and I are both in our sixties and we are looking to invest some of our pension pot in a buy-to-let. Are there any lenders willing to take us on, or are we too old? No you are not too old...

How much of a deposit do I need for a buy to let mortgage?

It is possible to get a buy to let mortgage with a deposit of just 15%; however, there are very few products available in this bracket and the rate you will pay will be high. If you are new to buy...

What is consent to let?

Consent to let is an agreement between you and your residential mortgage lender, that grants you permission to rent out your home without having to remortgaging onto buy to let finance. Not all len...

Is it advisable to take on a property with existing tenants, and if they prove to be problematic, what rights do we have?

My wife and I are thinking of investing in a buy-to-let but it is already being let out. Is it advisable to take it on with existing tenants, and if they prove to be problematic, what rights do we...

Is there a limit to the number of buy to let properties I can own?

No, you can own as many buy to let properties as you like (or can afford); it’s the number of buy to let mortgages that causes a problem. In general, the mainstream buy to let lenders limit borrowe...

Can we transfer our property portfolio from our joint name into a limited company structure and should we consult our accountant?

My wife and I have 2 buy to let properties and are in process of acquiring another property within a month or so. We have buy to let mortgages on all properties. and they are from the same lender....

How does the borrowing criteria differ on a buy to let mortgage from a standard residential mortgage?

Unlike residential mortgages which are calculated on the basis of the applicant’s salary, buy to let mortgages operate differently. The mortgage lender will apply a rent to interest (RTI) cover cal...

My wife and I have nearly paid off our residential mortgage and want to buy a second property for our son to live in, what would be the best way to do this?

My wife and I have £10,000 left to pay on our mortgage and the value of our home is £250,000. Our son is going away to university. We were thinking of buying a second home for him to stay in. Shoul...

What is a RICS HomeBuyer Report?

What is a RICS HomeBuyer Report? A RICS HomeBuyer Report is a type of home survey devised by the Royal Institution of Chartered Surveyors (RICS). It is aimed at homebuyers (hence the name) and inte...

Should I chose an interest only or repayment (capital and interest) buy to let mortgage?

This decision will very much come down to the individual’s investment strategy. The repayment route is often suited to investors using property as an alternative pension plan, or looking to build a...

Can I let out my current home in the UK and use the funds to purchase a new home in France?

I’m interested in buying a property abroad - maybe in France. Can I let out my current home in the UK and use the funds to purchase a new home in France? I presume you are asking if you can refinan...

Can I use the equity on my home as a deposit for an investment property?

In short, yes. If you have sufficient equity in your residential home, it is possible to release enough for a deposit on an investment property.The easiest time to release equity from your home is...

The government cut mortgage tax relief at the beginning of April, but I’m not sure what this means for me?

I first got into buy to let 10 years ago and I’m a little bit worried I might have to sell up because of some of the new regulations. The government cut mortgage tax relief at the beginning of Apri...

Can I get a buy to let mortgage and live in the property myself?

It would definitely be considered wrong to apply for a buy to let mortgage if you plan to live in the property yourself. It might even be considered mortgage fraud for which the penalties are sever...

I currently have six properties which I rent out but I am thinking of downsizing my portfolio at some point. Could you explain more about the PRA rules and what they mean for landlords?

Yes, you’re right, from October 2017 the PRA requires buy to let lenders to apply a “specialist” underwriting approach when assessing loan applications from portfolio landlords.  The PRA defines a...

Do I need to change my mortgage from buy to let to residential if I move into the property?

It is really important that you inform your existing buy to let lender that you have moved into the rental property. You could be risking mortgage fraud if you don’t. If you intend to stay in the...

Is it possible to get a buy to let lender to top up the mortgage to cover the costs of refurbishments on a property?

I’ve been thinking about a buy to let mortgage and I’ve finally found a suitable property. It’s very basic though and I would like to make a number of improvements. Is it possible to get the lender...

Is it possible to get a self-cert mortgage?

Self-certification mortgages no longer exist. All lenders will want to see proof of your income.

Can I offset tax against interest payments on a buy to let mortgage?

The information on this page does not constitute professional advice and we recommend that you check with a qualified accountant or tax specialist, however, in general terms… When renting out prope...

Can I raise finance on my unencumbered property to purchase another one?

Unencumbered property is when you own a property outright with no mortgage or loans secured against it.  Yes. The type of mortgage you would get would depend on whether you live in the property (a...

Is it advisable to purchase a buy to let property with sitting tenants?

Taking on the existing tenants will not necessarily be problematic assuming that the tenants occupy the property on a standard Assured Shorthold Tenancy agreement. You simply have to treat them as...

Can I get finance to buy a holiday let?

Financing for holiday homes is treated as a commercial mortgage transaction. If the property has not already got a record as a successful holiday let, in the current climate, it is unlikely that yo...

Can I get a buy to let mortgage on a flat above shops and offices?

You are right, these types of flats often fall outside of mainstream buy to let lending criteria; however, there are specialist lenders that will look at this type of investment. These lenders can...

What is the typical RTI cover amount required by lenders?

Rent to interest cover amounts vary between lenders. From the 1st January 2016 the PRA has set out stricter guidelines around rental stress tests and affordability checks for borrowers particularly...

Can I use the equity in my current buy to let property to purchase a second one?

Yes you can remortgage and use some of the equity as a deposit to make your next buy to let purchase. This is a common strategy used by property investors to grow their portfolios. If you take this...

How can I apply for a mortgage with you?

Give our mortgage broker team a call and let them help you. Most things can be done over the phone, via email and post. We’ll help you select the right mortgage and assist with the application. Mor...

Why should I use Mortgages for Business?

It can be hard to know exactly where to start when looking for a mortgage. Do you go to your bank, investigate the market for yourself or use a mortgage broker? The experience of applying for and g...

I have a bad credit history - can you help me?

It can be extremely difficult to get a mortgage if you have adverse credit but there are some solutions out there so it’s always worth talking to us. If you already have a mortgage, you might be ab...

How do I keep track of my application?

We handle every application we receive within our own team so you can contact us for an update. As soon as we receive your application we assign a dedicated member of our mortgage team to your case...

When should I remortgage?

Remortgaging is used for a number of reasons. To save money. To get a better rate. To raise equity.  When you are nearing the end of your initial rate, it’s a good idea to ask us if it’s worth remo...

I am 20 years old and on a low salary, would I qualify for a buy to let mortgage?

I have recently come into an inheritance and want to invest some of the money in property. The idea is to buy a flat or house for around £150,000 to rent out and I can put down a 50 per cent deposi...

Is it possible to take out a second mortgage on our home to use as deposit for a buy to let property?

Our house is now worth around £330,000 and we have £90,000 left to pay on the mortgage. We have a very low lifetime tracker mortgage rate of 1.69 per cent. We are thinking of buying a house to let...

I want to convert my buy to let property into two flats but need to remortgage to cover the cost of the works. Can I do this on my buy to let mortgage?

I bought a house 10 years ago which I let out but the tenants are leaving soon and I now want to convert it into two flats. I reckon the work will cost around £30,000. I only have £20,000 left to p...

Can I get a buy to let mortgage on a new build flat?

I am interested in buying a new build flat to rent out. I have heard that some lenders will not lend on new flats, is this true and if so, why? Most importantly, are there lenders who are willing l...

Can lenders increase their tracker rate mortgages even if Bank Rate stays the same?

I read about the court case where borrowers tried unsuccessfully to overturn West Brom’s decision to raise its tracker rate mortgage rate even though the Bank of England base rate has not gone up....

I'm looking to raise finance to renovate my existing buy to let property, what are my options?

My five year fixed rate buy-to-let mortgage is due to end in June. I want to raise more money as I would like to do some renovations to the house. The new work will mean I can charge a higher rent....

Do I need a buy to let mortgage or a residential mortgage if I am letting it out to my family?

My husband and I are thinking of investing in a two or three bedroom house for our daughter and letting out the other rooms to students. She is in her first year at university in Sheffield and curr...

Can I live in my property with a buy to let mortgage?

I have been renting my old home since 2009 as I was unable to sell it and moved to another town due to work. At the time I changed my mortgage to a buy-to-let at the insistence of my lender. I am n...

Will I be able to get a buy to let mortgage if I retire in 5 years time and my only income is my pension?

With the new pension rules due in April, I am thinking about taking out 25 per cent of my pension entitlement and investing it in a property to let. I have no mortgage on my home, I am still workin...

Can I get a 10 year fixed rate buy to let mortgage?

Are there any 10-year fixed rate buy-to-let mortgages? The adviser I saw recently recommended two-year products and was dismissive of anything longer term. I don’t want the hassle of remortgaging e...

Is there a limit on the number of buy to let mortgages are you allowed?

Is there a limit on the number of buy to  let mortgages are you allowed? It looks like a good way to invest for the future but I was wondering about building up a portfolio of properties and how to...

Can I get a mortgage on a buy to let property with a sitting tenant?

An opportunity has arisen for me to buy a property with a sitting tenant. I am a homeowner with no mortgage, I have a 25% deposit plus a reasonable job and income. The tenant has been in the proper...

Do lenders take service charges or ground rent into consideration when making lending decisions?

I am thinking of buying a flat to let out and was wondering about the extra charges, such as the service charge and ground rent. Are these taken into account by a mortgage lender?  I anticipate bei...

I want to purchase a house for family members who will contribute to the mortgage. Will this be classed as a buy to let?

I want to buy a small house for my elderly mother and my aunt (my mother’s sister) and they will contribute half of the monthly mortgage repayment each. We are doing this as they are unable to get...

I want to become a landlord again, but had a property repossessed in the past. Would I be considered by any lenders?

I had a buy-to-let mortgage on a house between 2002 and 2007. The house ended up being repossessed as my tenant lost his job and I could not cover the monthly repayments personally. My circumstance...

What costs are involved with taking out a buy to let mortgage?

What sort of extras costs will I have to make to the lender on a buy to let purchase? For example, are there product and arrangement fees, like with a normal mortgage? Also, how much commission wou...

There are a number of buy to let lenders I haven't heard of before. Are they okay to use?

I am thinking of investing in property and was looking at what sort of mortgage product I could get and what sort of interest rate to expect. There are a number of lenders I have found whose names...

What advice do you have for buying a property at auction?

Do you have any advice for buying property at an auction with the intention of letting it out? I do not know at this stage how much work would need to be done but I am hoping for a house that just...

Can I get a joint buy to let mortgage with a friend if we live separately?

I have been discussing with a close friend the possibility of buying a house in joint names with a view to renting it out. My friend is an interior designer and I am a gardener and handyman so we s...

We want to remortgage to take out some of the equity our buy to let has accrued. How much could we take out?

My wife and I have had a buy to let flat for five years and want to remortgage to take out some of the equity that has accrued to do some home improvements on our own house. We paid £180,000 for th...

My current lender is unable to extend the period of the loan as I shall be 75 years of age. What are my options for remortgage?

I have an existing buy to let mortgage with Birmingham Midshires due to expire in 2017. BM is unable to extend the period of the loan as I shall be 75 years of age. I would be seeking to extend the...

I am thinking of investing in buy to let property, but am a bit unsure about the mortgage process. Please can you explain?

I am thinking of investing in a buy to let property but I am a bit unsure about the mortgage process. If I take out a buy to let mortgage on an interest-only basis for say 20 years, what happens at...

How does a let to buy mortgage work?

Following the passing away of my father I have inherited some money. I would like to move to a bigger house but keep my current home and rent it out as an investment for my retirement. A friend tol...

Can I get a buy to let mortgage on a flat above a shop?

I have two buy-to-let flats and want to get a third one. The flat I have been informed about is above a row of shops on a decent housing estate. I have been told that lenders do not like to lend on...

I have a poor credit rating so am unable to get a btl mortgage. If I went into investment with someone with a good credit rating would we be considered?

My credit rating is not great as I have had problems in the past with mortgage arrears and other debts following a car accident and was unable to work for six months. That was three years ago and n...

I would like to invest in a studio flat for buy to let purposes, in London. Are there any options here?

I would like to make an investment in London but all I can afford is a studio flat. I have calculated that I should be able to get a rental yield of 125 per cent. However, the mortgage broker I spo...

My 2 sisters and I inherited a 5 bed property which we wish to refurbish and then maybe let to students as a HMO. Would we need to get specific funding for such a project?

My two sisters and myself have inherited our old family home as our mother recently passed away. The five bedroom house is in need of modernisation. We could sell it but are considering turning it...

Will my lack of employment prevent me in gaining finance for a BTL mortgage?

I have been out of work for a while through choice as I have been living off my inheritance. I still have a decent amount left but I am thinking I should do something with it, like investing in pro...

If a property is bought specifically as a holiday let, is it a BTL mortgage or does it have to be a special holiday let mortgage?

If a property is bought specifically as a holiday let, is it a BTL mortgage or does it have to be a special holiday let mortgage?Finance for holiday lets are usually provided by lenders on a commer...

What if you want to buy a second home/holiday home and let it out when you are not using it – what sort of mortgage would you need to get?

What if you want to buy a second home/holiday home and let it out when you are not using it – what sort of mortgage would you need to get?This type of purchase would be treated in the same way as a...

Do borrowers need a minimum income to invest in a holiday let? What about retired people?

Do borrowers need a minimum income to invest in a holiday let? What about retired people?If borrowing with a commercial mortgage the lender is unlikely to impose any minimum income requirements. If...

I know only a few lenders who accept holiday lets – why so few? How risky is it?

I know only a few lenders who accept holiday lets – why so few? How risky is it?Only a few lenders operate in this niche area because there is not huge demand. It is no more risky than any normal c...

I need to remortgage but due to my age and residence I am unable to find a lender. Can you help?

I need to remortgage but cannot find a lender. Positive aspects are that I need only a £250,000 loan for a flat in Richmond, Surrey worth over £1.2m. It is currently being let for £2,260 a month. I...

I need to make changes to my property for my disabled resident. Would my buy to let lender give me a further advance?

I have a buy-to-let house and one of the tenants is partially disabled and increasingly needs to use a wheelchair. She has asked if I could make the house disabled and wheelchair friendly, such as...

My partner and I are separating, how easy is it to remove a name from a mortgage?

My partner and I are splitting up and we have three buy-to-let houses.  She is keeping the house we lived in together, which has no mortgage, and I will move into the smaller of the buy-to-let hous...

With the new tax relief rules announced in the July Budget, should I change my status from an individual to a limited company?

Last year I bought my first buy-to-let property. With the new tax relief rules announced in the July Budget, should I change my status from an individual to a limited company? I have a full time jo...

Do I need to change my mortgage to a buy to let if I plan to let it out whilst working abroad?

I am going to New York to work for at least two years so I intend to let out my property while I am away. I have two questions. Firstly, do I need to change my mortgage to a buy-to-let? Secondly, d...

What are the risks of taking out a 10 year fixed buy to let mortgage?

My buy-to-let mortgage is due for renewal at the end of the year. I have been on a tracker but think that I should move to a fixed rate as Bank of England base rate may go up next year. I have no i...

I am thinking of investing in a house with a friend with a view to letting it out. We are not related so would lenders be willing to lend to us?

Providing you both meet the lending criteria, most buy to let lenders allow up to four applicants on a mortgage. You haven’t said anything about either of your circumstances, so it’s worth bearing...

You haven’t answered my question, what do I do now?

Give us a call and we’ll try to help.

What is rental yield and interest coverage ratio?

I have been looking into buy-to-let mortgages. I understand lenders want at least 125% rental yield, which I believe means the rent paid by the tenant must be 25% above the mortgage repayment of th...

A property has been bought down in price due to a Japanese knotweed in the garden, can you advise?

I am interested in buying a house that has been brought down in price as it has Japanese knotweed in the garden. I have heard that I might not be able to get a mortgage because of this, although I...

Can you explain what the MCD means for me as a borrower come March 21st 2016?

I bought a buy-to-let flat last year and want to buy another one later this year. I have read that some buy-to-let mortgages will be regulated under the Mortgage Credit Directive from 21 March. Wha...

Who is the main applicant on a mortgage?

Who is the main applicant on a mortgage?The primary person (individual or director) applying for the mortgage. All lenders will allow more than one person to be named on a mortgage. The main applic...

Who is the second applicant on a mortgage?

Second applicantAll lenders will allow more than one person to be named on a mortgage. The second applicant is the second named person (individual or director) on the mortgage application. Generall...

Are buy to let mortgages for limited companies harder to get?

Are buy to let mortgages for limited companies harder to get?No, not at all. Even though there are fewer lenders offering these products we help investors with this type of transaction on a daily b...

Are buy to let mortgages for limited companies more expensive?

Are buy to let mortgages for limited companies more expensive?This all depends on the lender. Ltd Co mortgages do require a higher level of underwriting, but whether or not the lender chooses to pa...

Will I have to provide a personal guarantee if I take out a Ltd Co buy to let mortgage?

Will I have to provide a personal guarantee if I take out a Ltd Co buy to let mortgage?Yes. All lenders will require that the directors/majority shareholders provide personal guarantees.Related que...

Will I have to put in a bigger deposit if I borrow through a limited company?

Will I have to put in a bigger deposit if I borrow through a limited company?No. Like rates for individuals, Ltd Co buy to let mortgages are available to a maximum of 85% loan to value; however, th...

Can I borrow through a newly created limited company if I don't have any accounts?

Can I borrow through a newly created limited company if I don't have any accounts?Yes you can. Directors and/or majority shareholders are always required to offer a personal guarantee and as such,...

Can I transfer personally owned rental property to an SPV?

Can I transfer personally owned rental property to an SPV?In real terms, property cannot be transferred, rather the transaction is treated as a sale by you to the company, this is also known as a r...

Is there a particular type of limited company I should establish in order to purchase buy to let property?

Is there a particular type of limited company I should establish in order to purchase buy to let property?In the mortgage world there are two types of companies. The first are those which only hold...

What is top-slicing?

Top-slicing is where a buy to let lender uses a borrower’s personal income to top up any shortfall in rent which is needed for the borrower to obtain the loan amount they require. See more informat...

What is an unencumbered property?

Unencumbered property is when you own a property outright with no mortgage or loans secured against it.            Last updated date: 04/01/2016

What is RTI?

RTI stands for Rent to Interest. Rent to Interest calculations are imposed to ensure that the rental income is more than sufficient to meet the monthly mortgage payment.     Last updated: 04/01/2017