Buy-to-Let Mortgages for Landlords and Homeowners

Buy to let mortgages are like normal residential mortgages but are designed for those people looking to rent out their property to tenants, rather than live in the property themselves.

This could be a commercial landlord looking to generate income through charging rent or making a profit on the property upon its sale, or used by homeowners who are in the middle of moving house and are renting out their property for a certain period.

All Purpose Loans works with over 100 specialist lenders across the UK and can help you compare buy to let mortgage rates including interest only, fixed, variable and tracker.

Start by clicking on ‘get a quote’ below and enter some basic details about you and your property. You will receive an instant decision with a list of competitive rates and buy to let mortgage deals to choose from.

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Key Features

  • Used for renting out property to tenants
  • Borrow up to £2 million
  • Minimum 25% deposit
  • Interest only, fixed, tracker mortgages available
  • Rent charged should be 125% to 145% of mortgage repayments
  • Free tool to compare buy to let mortgages
  • No obligation quotes provided

How much can I borrow through a buy to let mortgage?

The amount you can borrow through a buy to let mortgage is typically up to £2 million, and the figure is based on what you will likely be charging as rent, with the expected rent you charge to be at least 125% of the mortgage payment, or sometimes as high as 145% depending on the lender.

This 25% to 45% margin is essentially your profit for renting property out to tenants. For example, if the property you are buying to let out will cost you £10,000 a year in mortgage interest, the lender will need to see that you’re expecting to generate at least £12,500 in rent each year.

Can I get a buy to let mortgage?

The criteria for a buy to let mortgage is typically:

  • Aged 25 to 85 years’ old
  • Minimum deposit 25% of overall property value
  • Good credit status
  • Strong financial record (limited defaults, arrears)

The typical deposit required for a buy to let mortgage is 25% of the property value, with some lenders requiring around 40% to 45%. Larger deposits will usually result in paying lower rates overall, since you have paid off and own more of the property. Putting down a higher deposit may also be a requirement for those individuals with limited financial records or weaker credit ratings.

Things to consider

Prospective landlords should take into consideration the overall costs of purchasing a property and any running costs including:

  • Any renovation work
  • Legal fees, surveyor fees, tenancy agreements
  • Furnishings and appliances
  • Buildings and content insurance
  • The interest rate once the introductory mortgage offer ends

Renting out a property to tenants needs to be commercially viable and generate a profit, so taking all other costs and considerations into account is very important to ensure that you make one and avoid losses overall.

How to apply with All Purpose Loans

Click on ‘get a quote’ to get started, and we require a few basic details including your property value, expected annual rent and deposit you would like to put down. Our buy to let mortgage calculator will present a number of competitive quotes that you can choose from, and allow you to change any different values if you need to.

Working with a number of high street banks and specialist mortgage lenders, All Purpose Loans can help you compare rates across the entire market. It is free to get a quote and you can choose if you wish to proceed. Our dedicated team of advisors are always on hand if you have any further questions and can guide you every step of the way.

GET MY INSTANT QUOTE

No credit check without your consent