Buy to let mortgages

What is a buy to let mortgage?

A buy to let mortgage is a loan for purchasing or refinancing residential property which is let to tenants rather than lived in by the borrower. Classed as a business transaction, rates and fees are typically higher than those you would find with a standard residential mortgage. You'll need a larger deposit too - the maximum you can borrow is 85% loan to value although there are many more rates available at 75% LTV.

Buy to let lenders & product numbers

No. of buy to let mortgage lenders: 38
Average no. of buy to let products: 1,547

Source: Buy to Let Mortgage Index Q2 2018, Mortgages for Business

A large proportion of buy to let mortgages can only be accessed by intermediaries, so it is important you speak with a whole of market broker. Our highly qualified brokers are here to scan the whole market and select the rates best suited to your individual circumstances.

Securing a name for ourselves as one of the UK's leading mortgage brokers, we are often given access to exclusive and semi-exclusive rates.

Buy to let mortgage pricing

Buy to let mortgage rates tend to be higher than residential mortgage rates. Saying that, buy to let pricing is currently very competitive, with rates starting below 2%.

Want to have a look for yourself? You can take a look at all of the rates currently on offer using our bespoke buy to let rate finder.

Buy to Let Rate Finder

Buy to let mortgage rates for limited companies

For many landlords, taking out a buy to let mortgage via a limited company is now more tax efficient than borrowing personally, although we advise you to seek professional tax advice before you make any property investment decisions. According to the results of our latest Buy to Let Mortgage Index 31% of buy to let mortgage products are available to limited company applicants. 

Income Tax Relief Changes for Buy to Let Landlords

FAQs on Ltd Co Borrowing for Buy to Let 

Interest only or repayment?

The decision of whether an investor chooses an interest only or repayment (capital and interest) buy to let mortgage will very much depend on 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 small property portfolio. With monthly capital and interest repayments, the investor can be sure that at the end of the mortgage term the full loan is repaid.

The interest only route is usually more popular with professional landlords and property investors for two main reasons. Firstly, with an interest only strategy the investor's aim is usually to continue building a sizeable portfolio of property. By choosing this strategy the investor has the cashflow to re-gear their property capital in order to increase their number of properties. This is usually a long term strategy. At the end of the mortgage term, the property is usually sold to repay the initial advance. Secondly, there are certain tax advantages as interest due on buy to let mortgages can be off-set against tax. We recommend that you seek professional advice from a qualified accountant regarding the tax incentives available.

Next: Fees & how to apply


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