Our team of experts have chosen those mortgages they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst products shown with a yellow background are sponsored products.
A sponsored product is a product that has not met the criteria to appear in the best buy tables at that time, but which we may receive a payment to promote below these charts. They are listed with the products we have the best commercial deal with shown first.
Most Buy-To-Let mortgages are not regulated by the Financial Conduct Authority (FCA). Whether a Buy-To-Let mortgage is regulated depends on your personal circumstances. The above information assumes that FCA regulation does not apply to the mortgage products shown.
YOUR BUY-TO-LET PROPERTY MAY BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON ANY MORTGAGE SECURED ON IT. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.
Buy to let mortgages are very similar to a mortgage on your home, but there are some key differences:
Buy to let mortgages are assessed primarily on the rent you are charging. The rent you charge must typically be 125% of the mortgage payment (so for a mortgage payment of £800, you'll need to be charging rent in the region of £1,000 per month). Some lenders also have a minimum income requirement as well, to give them some assurance you could meet mortgage payments during untenanted periods.
Rates on even the best mortgage deals will usually be higher than on similar deals for your own home.
The amount of money that you need to put up can be higher for a BTL mortgage. While for a mortgage on your own home you might be able to access a deal requiring a 10% deposit, these mortgages require a minimum of 20%. In keeping with a mortgage on your own home, the very top rates are reserved for borrowers who can stump up a deposit of 30-40%.
Buy to let mortgages generally charge higher arrangement fees - for a loan of £100,000, fees can range from £1,000 to £3,500. With such variance it's well worth shopping around, as well as enlisting the help of a good Buy to let mortgage adviser. It can often be the case that a mortgage with a lower rate can work out more expensive if the arrangement fees are high.
Unlike a normal mortgage, you may be able to secure a BTL mortgage way beyond your retirement age. This is because buy to let mortgage rates are usually assessed using the rental income you receive. If you're thinking of keeping a buy to let into retirement be sure that you've considered that managing a property will be work, even if you employ a letting agent. As well, consider the effect that any untenanted periods will have on your finances, particularly as your income is likely to be reduced after giving up work.
Buy to let is a form of property investment. As such, you have the potential to lose money as well as to make it.
Unlike other forms of investment, buy to let is often “leveraged” or part financed by borrowing through a mortgage. While this gives the opportunity to make big gains if property prices go up, it can exacerbate your losses if property prices go down.
Mortgage advice can be particularly important in the context of buy to let. An experienced adviser will have the in-depth market knowledge to help you find the most suitable mortgage.
We've partnered with a team of friendly and hugely experienced mortgage advisers who are on hand to help with your decision. Simply request a callback and someone will be in touch shortly. Our mortgage advice service is available if you need to borrow from £50,000, up to 80% of your property's value.