Loading...

Compare Buy to Let Mortgage Rates

Why Use Simple Financial Planning ?

FCA Authorised

·
The Money Planners is authorised and regulated by the Financial Coonduct Authority. Their goal is to ensure we always run our business in the best interest of our clients

Whole of Market

·
Allows us to ensure that we are not restricted in insurance companies we compare to match your needs. This also means we are not biased from one insurance company to another

BTL Updates

·
Whether it’s the new tax laws, information on mortgages for limited companies (SPV) or the changes in regulation surrounding rental income calculations, it’s a daunting market to be in. Let us help you to take the pain out of the process.

Our Partners

Questions?

If you have some questions, maybe we've already answered them for you

  • How much could I borrow on a buy to let mortgage?

    Unlike a residential mortgage, where the amount you can borrow is based on your salary and your outgoings, a buy to let mortgage is assessed on the rental income that the property is likely to generate. Lenders will typically need the rental income to be at least 125% of the monthly mortgage payments (on an interest only basis) which means that means that if your mortgage will cost £800 a month, the rent will need to be at least £1,000 a month.

    Most lenders will also require you to be earning an income yourself. Try our buy to let calculator to see how much you could borrow.

  • How much deposit do I need?

    As with any type of mortgage, the more you can put down as a deposit, the better the mortgage deal you could get. A lower mortgage rate means lower monthly payments and a greater margin between your rental income and your mortgage costs.

    As a rule, you’ll need a deposit of around 25% or more of the property’s value, although some lenders will require as little as 15%, provided the rental income is sufficient.

  • Do I need a tenancy agreement?

    If you are a private landlord and renting a property that will be your tenants’ home, then you’re likely to need an Assured Shorthold Tenancy (AST).

    When applying for a buy to let mortgage, the mortgage lender will insist that you have an AST and may ask to see a copy. There’s more information about tenancy agreements on the GOV.UK website here – www.gov.uk/tenancy-agreements-a-guide-for-landlords.

  • Can I buy a buy to let property as a first time buyer?

    The simple answer is yes, but you may be limited when it comes to getting a mortgage. The first question to ask is, are you a first time landlord or a first time buyer?

    This is key as a large percentage of lenders need you to own your own residential property (possibly for at least six months) before they will offer you a buy to let mortgage. Some lenders just need you to own a property, so you could have another buy to let property but live in rented accommodation.

    If however you are a complete first time buyer (or don’t currently own a property) then your mortgage options will be limited. An adviser will know the best lenders to speak to if you fall into any of these categories.

What Our Customers said