Buy to let mortgage brokers

What is a buy to let mortgage?

Buy to let mortgages are designed to help you buy a property to rent out to other people, rather than live in yourself. The amount you can borrow depends on the deposit you can put down and the amount of rental income you expect to earn from tenants. There are many different types of buy to let mortgages, such as single unit family lets, holiday lets, House of multiple occupancy (HMO) and Multi-unit freehold blocks (MUFB). Our expert brokers can assist with any type of buy to let set up you require.

Are buy to let mortgages interest only?

Yes, most buy to let mortgages are interest-only, meaning monthly payments only cover interest. The loan balance is paid at the end of the term, typically through the sale of the property. However, it is possible to get a BTL mortgage on a repayment basis.

How do lenders test affordability?

Lenders typically use your expected rental income to calculate how much you can afford to pay in monthly interest payments. Some can also take into account personal income to make up any shortfall in this rental income, should it be required, often know as "top slicing".

Lenders ask for your rental income to cover between 125% to 140% of the monthly interest payments but each lender has their own requirements.

Use our buy to let mortgage calculator for an idea of how much you could afford to borrow based on rental income. Our expert buy to let mortgage brokers can help you estimate how much rental income you would need to make from a property in order to get maximum borrowing levels.

How much deposit do I need for a buy to let mortgage?

Buy to let mortgages are available from as little as 20% deposit with more options becoming available with a 25% deposit. However, the rental income needs to stack up in order to borrow the remaining 75-80%, in some cases more deposit is required in order for the rental affordability to work.

Am I eligible for a BTL mortgage?

You need to meet certain criteria to be eligible for a buy to let mortgage. Although exact details vary between lenders, some key criteria are as follows.

• Age: You will typically need to be at least 21 years old, although some lenders can offer mortgages below this limit. There is an upper limit with some lenders for BTL products, but options are very flexible.
• Location of residence: If you are purchasing a buy to let property very close to your current residential home some lenders will have further questions surrounding this but options are available. Buy to let mortgages are also available to those who are currently living outside of the UK
• Credit history: Many lenders can be flexible when it comes to less than perfect credit. They will typically consider the age, severity and amount of any credit problems and may overlook less severe issues.
• Property ownership: It is not a requirement to own your own home before you purchase a buy to let. There are a number of lenders who allow a first time buyer, first time landlord scenario.
• Personal income: Some lenders do have minimum income requirements, if so this is typically £25,000 per year, separate from your rental earnings. However, there are lenders who do not have this requirement, especially for experienced landlords.

Whatever your circumstances, our expert buy to let mortgage brokers can let you understand your eligibility and help you find the best financing for your needs.

Why use a mortgage broker for your buy to let?

Whether you are an experienced landlord or this is your first one BTL mortgages can be complex, and there are significant advantages to enlisting the help of our specialist brokers.

Many lenders only offer products via mortgage brokers so you cannot access all of the options directly yourself. We offer a professional service and access to tailored advice individual to your circumstances as well as keeping up to date with changes in legislation surrounding BTL finance including Green products eco mortgage options. We support complex scenarios, such as portfolio landlords, HMO properties, adverse or missed payments

We can access all the relevant information because we have long-standing relationships with each lender, and we can use this knowledge to find the best options for your particular circumstances.

How our BTL mortgage process works

1. Understanding your needs

You tell us about your situation and goals in detail, which helps us find the best lenders and deals for you.

2. Gathering documentation

We tell you what documents you need to support your buy to let mortgage application and help you prepare them.

3. Making your application

For your remortgage or purchase, we use our vast network of lenders to find the best mortgage for you. We manage the entire application process for you, making it as simple and stress-free as possible.

4. Assisting with lender checks

The lender carries out a valuation and their underwriter reviews your application to confirm you match their criteria. We provide any additional information they might need, ensuring this stage proceeds as smoothly as possible

5. Receiving your offer

The lender makes you a formal BTL mortgage offer when they're happy with all the checks. We help you complete the legal details and exchange contracts with the seller, taking the hassle out of the paperwork.
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Why choose Alexander Hall's buy to let mortgage brokers?

With more than three decades' experience providing best-in-class mortgage advice, our expert BTL brokers have the experience to find the right deal for you. Here are some of the reasons you can count on us.

• Impartial advice: Our brokers provide the insights and guidance you need to make informed decisions about funding your investment.
• Extensive network: We give you access to a wide range of options, with more than 100 lenders in our network, including buy to let mortgage specialist providers.
• Streamlined process: We take the heavy lifting out of the entire mortgage process, leaving you free to focus on what matters most to you.
• Exceptional service: Thousands of happy customers have given us 'Excellent' ratings on Trustpilot and we promise to provide you with the same outstanding levels of service.
• Award-winning brokers: We've won a wide range of awards over the years, including the Best Broker for Customer Service in the Legal & General 2024 Mortgage Club Awards most recently.