Buy to Let

Fancy venturing into life as a landlord? Whether you are a first-time landlord or have a property portfolio already, we’re on hand to guide you through all the options available to you.

Your property may be repossessed if you do not keep up repayments on your mortgage

A buy-to-let mortgage has been designed specifically for people looking to purchase property as an investment, rather than as somewhere to live.

Whether you are a first-time landlord or have a property portfolio already, the borrowing criteria and costs from lender to lender are all different, the maximum you can borrow is linked to the amount of rental income you expect to receive. Lenders typically need the rental income to be 40–50% higher than your mortgage payment.

We’re on hand to guide you through all the options available to you.

Most buy to let mortgages are not regulated by the Financial Conduct Authority

Your options...

Fixed Rate
Variable Rate
Tracker
Flexible
Discounted

If you like to know where you stand each month with your payments then a fixed rate is for you. The rate of interest that you'll be charged will remain fixed for an agreed length of time.

Your monthly payment fluctuates in line with a standard variable rate (SVR) of interest, which is set by the lender. You probably won’t get penalised if you decide to change lenders and you may also be able to repay additional amounts without incurring a penalty. Many lenders won’t offer their standard variable rate to new borrowers.

Your monthly payment rises and lowers in line with a chosen Base Rate (usually the Bank of England Base Rate).

The rate charged on the mortgage ‘tracks’ that rate, usually for a set period of two to three years. You may have to pay a penalty to exit the agreement, especially during the tracker period. You may also be liable to pay an early repayment charge if you overpay on your mortgage during the tracker period.

A tracker mortgage may suit you if you can afford to pay more when interest rates go up – and, of course, you’ll benefit when they go down. It’s not a good choice if your budget won’t stretch to higher monthly payments.

These schemes allow you to overpay, underpay or even take a payment ‘holiday’. Any unpaid interest will be added to the outstanding mortgage, while any overpayment will reduce it. Some have the facility to draw down additional funds to a pre-agreed limit.

Like a variable rate mortgage, your monthly repayments can go up or down. However, you’ll get a discount on the lender’s standard variable rate for a set period of time, after which you’ll usually be switched to the full standard variable rate. You may have to pay a penalty for both overpayments and early repayment and the lender may choose not to reduce (or to delay reducing) its variable rate – even if the base rate goes down.

Discounted rate mortgages have the advantage of offering a gentler start to your mortgage repayments, at a time when money may be tight. However, you must be confident that you’ll be able to afford your repayments when the discount period ends and the rate increases.

How it works...

1. You'll tell us your goals & aspirations

2. You'll gather your documents and let us know your requirements

3. You'll receive our recommendations

4. You'll let us know you'd like to go ahead and we'll submit your application

Common FAQS

How much can I borrow?

The amount you can borrow is linked to the amount of rental income you expect to receive. Lenders typically need the rental income to be 40–50% higher than your mortgage payment.

How much deposit do I need?

For a buy-to-let mortgage in the UK, the typical deposit required ranges from 20% to 25% of the property's purchase price, which is generally higher than that for standard residential mortgages. This increased deposit reflects the higher risk associated with rental properties. The exact deposit amount can vary based on your financial situation, the expected rental income from the property, and the lender’s criteria.

How much stamp duty will I need to pay?

For buy-to-let or additional properties in the UK, you typically have to pay an extra 3% on top of the standard stamp duty rates. Here's how the rates are structured:

3% SDLT on properties up to £250,000.
8% SDLT on the portion from £250,001 to £925,000.
13% SDLT on the portion from £925,001 to £1.5 million.
15% SDLT on any amount above £1.5 million.

For instance, if you buy a buy-to-let property for £295,000, the stamp duty calculation would be:

3% on the first £250,000 = £7,500
8% on the remaining £45,000 = £3,600

Can I move before my fixed rate mortgage is over?

Yes you can, depending on your provider their may be an early repayment charge. Some lenders allow you to move your mortgage from one house to another subject to certain conditions.

How much does your service cost?

A fee of £350 is payable on Mortgage application.

I don't live in Somerset, can you still help me?

Certainly! As a mortgage adviser, I can assist you regardless of your location in the UK. Our services are tailored to meet the needs of all homebuyers, whether you're purchasing your first home, moving up the property ladder, or refinancing. We provide expert advice and support through online consultations and digital resources, ensuring you receive personalized and professional guidance no matter where you are based. Feel free to contact us for any mortgage-related inquiries or to schedule a consultation at your convenience.

Are you looking for a different question? Check out our FAQ page here.