A Buy-to-Let mortgage is a loan secured on a property you intend to rent out. If you’re looking for a loan on a property for personal residence or for business use, please explore our Residential or Commercial Mortgage sections.
At Connect, we specialize in helping you secure a Buy-to-Let mortgage tailored to your goals, whether you’re an experienced landlord growing your portfolio or a first-time investor exploring the rental market.
If you already own Buy-to-Let properties, we can assist with refinancing to secure better interest rates or to release equity for other investments.
With access to over 170+ lenders, we cater to a variety of borrower needs, including those with complex income streams or non-standard properties.
Buy-to-Let Mortgage
A Buy-to-Let mortgage is a loan secured on a property you intend to rent out. If you’re looking for a loan on a property for personal residence or for business use, please explore our Residential or Commercial Mortgage sections.
At Connect, we specialize in helping you secure a Buy-to-Let mortgage tailored to your goals, whether you’re an experienced landlord growing your portfolio or a first-time investor exploring the rental market.
If you already own Buy-to-Let properties, we can assist with refinancing to secure better interest rates or to release equity for other investments.
With access to over 170+ lenders, we cater to a variety of borrower needs, including those with complex income streams or non-standard properties.
How Does a Buy-to-Let Mortgage Work?
Obtaining a Buy-to-Let mortgage typically involves meeting specific criteria, as these loans are considered higher risk by lenders. Borrowers often need a larger deposit, typically 25% of the property’s value, and the loan is repaid using rental income.
Key points about Buy-to-Let mortgages include:
Rental Income: The lender will assess the rental income potential of the property. Generally, rental income must cover 125%-145% of the mortgage repayments, depending on the lender and tax status.
Loan Terms: Similar to residential mortgages, Buy-to-Let mortgages usually have terms of 5 to 25 years, but repayment structures may vary. Many borrowers opt for interest-only mortgages, lowering monthly payments but requiring repayment of the full capital at the end of the term.
Interest Rates: Rates for Buy-to-Let mortgages are typically higher than residential mortgages. Rates vary depending on factors such as deposit size, property type, and borrower profile.
Deposits and LTV: A larger deposit typically results in more favorable rates. The maximum LTV for Buy-to-Let mortgages is often 75%-80%.
Tax Implications: Borrowers should consider tax obligations, including income tax on rental profits and potential capital gains tax upon selling the property. Consulting a tax adviser is recommended.
How Does a Buy-to-Let Mortgage Work?
Obtaining a Buy-to-Let mortgage typically involves meeting specific criteria, as these loans are considered higher risk by lenders. Borrowers often need a larger deposit, typically 25% of the property’s value, and the loan is repaid using rental income.
Key points about Buy-to-Let mortgages include:
Rental Income: The lender will assess the rental income potential of the property. Generally, rental income must cover 125%-145% of the mortgage repayments, depending on the lender and tax status.
Loan Terms: Similar to residential mortgages, Buy-to-Let mortgages usually have terms of 5 to 25 years, but repayment structures may vary. Many borrowers opt for interest-only mortgages, lowering monthly payments but requiring repayment of the full capital at the end of the term.
Interest Rates: Rates for Buy-to-Let mortgages are typically higher than residential mortgages. Rates vary depending on factors such as deposit size, property type, and borrower profile.
Deposits and LTV: A larger deposit typically results in more favorable rates. The maximum LTV for Buy-to-Let mortgages is often 75%-80%.
Tax Implications: Borrowers should consider tax obligations, including income tax on rental profits and potential capital gains tax upon selling the property. Consulting a tax adviser is recommended.
Ready to Start or Expand Your Portfolio?
Whether you’re purchasing your first Buy-to-Let property or adding to an existing portfolio, we can help you navigate the process. Many assume their bank offers the best rates, but with our panel of over 170 lenders, we ensure you get a competitive deal tailored to your needs.
Our Advisers Can
- Calculate how much you can borrow based on rental income and affordability criteria.
- Search the entire market to find the most competitive deals.
- Recommend the best mortgage for your specific property and circumstances.
- Guide you through the application process to completion.
What next?
We will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 111.
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