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Buy to Let Mortgage Broker

Are you looking to invest in a property? Deedle Finance can help you secure the Best Buy To Let Mortgage Rates through the help of our dedicated experts.

Our mortgage advisers can help you save money and make mortgages simple. So what are you waiting for? Start your investment journey today!

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How To Apply For A Buy To Let Mortgage

Step 1
Complete The Form
Enter a few basic details on our online form including your name, contact information and requirements (i.e. Buy To Let Mortgages).
Step 2
Receive Expert Advice
You will receive a callback very quickly whereby one of our experts will guide you through all of your options.
Step 3
Find Out If You Qualify
Our trained professionals will ask you a few key questions to work out which deals you are eligible for and compare the market to find the best buy to let mortgages.
Step 4
Receive Your Buy-To-Let Mortgage
Once we have found a loan to suit your borrowing requirements, our advisers can help you submit your mortgage application straight away!

What Is A Buy To Let Mortgage? Buy To Let Mortgages Explained...

A buy to let mortgage is a loan taken out to purchase a property that you intend to rent out to residential tenants. If you rent out a property, you become a landlord with legal responsibilities. Whilst buy to let mortgages often cost more than residential mortgages, landlords hope to make a profit from this form of investment, or to at least break even initially.

Buy to let mortgages in the United Kingdom tend to be interest-only, with the landlord paying the monthly interest using the rental income generated from the tenants. Applicants can apply for a buy to let mortgage for all types of properties including apartments, maisonettes, cottages, bungalows, houses and everything else in between. Plus there are also commercial buy-to-let mortgages for landlords who want to invest in business property.

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What Costs Are Involved In Buy To Let Mortgages?

Buy to let mortgages often cost more than residential mortgages, especially because the interest rate and lender fees tend to be higher. Additional fees are summarized below:

Deposit – Most buy to let mortgages require a deposit of at least 25%. Some high street lenders may let you put down 20% and some specialist lenders even 15% for a 85 ltv buy to let mortgage if you are a landlord already. Deposits tend to be higher because lenders often think the loan is more risky than for residential mortgages – for instance, there could be times when the property is empty or the tenants failed to pay the rent.

Stamp Duty – Stamp duty has to be paid for all rental properties. If you buy a second home, you will have to pay a 3% higher rate of stamp duty. First time buyers purchasing buy to let properties are not eligible for the same stamp duty discount they would receive from a residential property since they would not be living in the property themselves. You can check how much you would have to pay with a stamp duty calculator.

Other potential fees to consider include lender application fees, valuation fees, solicitor fees, survey fees, letting agent fees and landlord insurance. There is also tax on the income you earn from the rent payments and capital gains tax (if you sell the property for more than you paid for it after all fees and costs).

Different Types of Buy To Let Mortgages Available

Fixed Rate Buy To Let Mortgage

  • A fixed rate mortgage allows borrowers to fix their mortgage rate for 2 to 15 years.

  • Repayments stay the same during that time.

  • Sometimes the longer you fix your rate for, the higher the interest rate will be.

Discount Variable Rate Mortgage

  • Discounted variable rate mortgages mean that borrowers get a discounted rate for some time, usually between 2 to 5 years.

  • These mortgages tend to have the lowest interest rates and lowest monthly repayments but monthly repayments can go up or down.

Buy To Let Tracker Mortgage

  • Tracker mortgages follow the Bank of England’s base rate.

  • They often track a certain percentage above it.

  • Monthly repayments can go up or down with a tracker mortgage.

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Why Get A Buy To Let Mortgage With Deedle?

There are many reasons why you should get a mortgage through Deedle. This includes:

Extensive Experience: With many years of experience in the mortgage industry, we have a deep understanding of the buy-to-let market. We have helped numerous investors secure favorable mortgage deals and achieve their financial goals.

Wide Range of Lenders: We search 1,000s of mortgage deals to find the right one for our customers’ circumstances and needs. Some of these cheapest buy to let mortgages cannot be found on the high street and are exclusive to us.

Personalized Solutions: We believe in providing personalized solutions tailored to your investment needs. Our team takes the time to understand your financial goals and property portfolio, enabling us to recommend mortgage options that align with your unique circumstances.

End-to-End Support: Our dedicated team of mortgage advisors will be with you every step of the way, from initial consultation to mortgage completion. We handle all the paperwork, liaise with lenders and ensure a smooth process, saving you time and effort.

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Where Can I Get A Buy To Let Mortgage?

Buy to let mortgages are available across the UK. Areas include but are not limited to:

  • Aberdeen
  • Bath
  • Belfast
  • Birmingham
  • Bristol
  • Cambridge
  • Cardiff
  • Coventry
  • Durham
  • Edinburgh
  • Glasgow
  • Leeds
  • Liverpool
  • Leicester
  • London
  • Manchester
  • Newcastle
  • Nottingham
  • Oxford
  • Portsmouth
  • Scotland
  • Southhampton
  • Warwick
  • York

What Should I Consider Before Applying For A Buy To Let Mortgage?

Before applying for a buy to let mortgage, there are certain restrictions and rules that landlords should know about. For instance, landlords cannot live in rental properties without permission from their lender. Even if the lender allowed it, it would most likely mean switching to a different product type.

Landlords are also no longer able to deduct mortgage expenses from their rental income. Instead, they are entitled to a 20% tax credit on interest payments. There were also new electrical safety standards that were introduced in 2020 which can be found on the government’s website here.

It is also important to plan how you are going to pay off the loan at the end of your mortgage term. Option include selling the property, paying with investments, an endowment or by taking out another mortgage.

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What Is the Buy To Let Mortgage Criteria?

There are a number of different buy to let mortgage requirements. To qualify for a buy to let mortgage, the lender will often consider the following:

  • Your age
  • Your current income and employment history
  • Your credit rating
  • Any debts you might have
  • The deposit amount
  • The value of the property you are looking to purchase
  • The projected rental income of the property
  • Whether you have any landlord experience
  • Whether you own a home with a residential mortgage

What Documents Are Needed To Apply For A Buy To Let Mortgage?

The following documents are usually requested and assessed in order for you to secure a buy-to-let mortgage:

  • Proof of ID e.g your passport or driving license
  • Proof of postal address
  • Proof of income (usually the most recent three months payslips)
  • Mortgage statement for your existing property or properties
  • Proof of rental income (usually a report from an ARLA-regulated agent)
  • Proof of deposit
  • Current or most recent P60
  • Your SA302 tax return forms if you are self-employed
  • Proof of any bonuses or commission if applicable

Frequently Asked Questions About Buy To Let Mortgages

How Much Can I Borrow?

The amount you can borrow with a buy to let mortgage depends on how much income you expect to generate in rent. You often need a monthly rental income of about 25-45% more than your monthly mortgage repayments. Whilst some lenders ask for at least £25,000 in rental income, others may not ask for a minimum at all.

If you are a first time buyer, the lender will most likely consider your gross salary too.

Is It Possible To Rent Out My Home If I Have A Residential Mortgage?

No. If you already have a residential mortgage you will need to switch to a buy to let mortgage if you plan to rent it out.

Whilst you do not have to switch mortgage products if you only plan to rent out your home for a short period of time, you will need ‘consent to let’ from your lender instead. Without permission, you could be in breach of your mortgage contract and your lender could see this as fraudulent behaviour.

Is It Possible For Buy To Let Tenants To Sub Let Their Property?

It is possible for buy-to-let tenants to sub-let to ensure there is rental income coming in during void periods. However, you must make sure to run this past your mortgage provider and get their approval. Mortgages that allow sub-letting may sometimes come with higher rates of interest due to the larger level of risk involved.

Do I Have To Pay Tax If I Sell My Rental Property?

Yes, landlords usually have to pay Capital Gains Tax (CGT) when they sell a buy to let property. This will be due if you sell your property for more than you paid for it.

What Is The Minimum EPC Rating For A Buy To Let Property?

The minimum EPC rating for a buy to let property is currently E, unless an application exemption exists such as holiday lets, accomodation for asylum seekers, a build where energy efficiency improvements would alter their character or appearance, or for buildings intended to be used for less than 4 months a year.

So private landlords holding properties with an EPC rating of F or G with normal buildings will not be able to rent them out to new tenants until energy efficient improvements have been completed. Any breaches of this law could result in a civil penalty.

New landlords can however apply for a temporary 6 month exemption in order for all the work to be completed on a recently acquired property. Other landlords can also apply for a 5 year exemption in cases where they cannot complete work because they are unable to get consent or where improvement costs would exceed a certain amount.

Can First Time Buyers Get A Buy To Let Mortgage?

Yes, it is possible for first time buyers to get a buy to let mortgage. However, it is less common and some lenders are reluctant to do this at all. Those that do are likely to consider the buyers gross salary when they apply for a mortgage, accepting a minimum of around £25,000.

Whilst first time buyers do not have to pay the 3% stamp duty surcharge for investors and second homebuyers, since they would not be living in the property they would not be able to get the first time buyer stamp duty discount.

Deedle Finance is the trading name of Tudor Lodge Digital Ltd which trades under company number: 10437769.

Deedle Finance does not provide advice on regulated mortgage contracts or credit agreements, these are carried out by one of our independent FCA regulated associates. 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENT ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

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