Buy to Let
Looking for a Buy to Let mortgage?
Whether you're thinking about becoming a landlord, or want to remortgage your current Buy to Let property, you're in the right place. Create a free Tembo plan to see what Buy to Let mortgage deals you could be offered, including personalised rates and indicative monthly repayments.
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How does it work?
A Buy to Let mortgage is a type of loan used to purchase a property you plan to rent out to others, rather than for you to live in. Buy to Let mortgages work differently to standard mortgages. The minimum deposit you need to put down is usually much higher, typically at least 25% of the property's value. The amount you can borrow for a Buy to Let mortgage is also based on how much rent the property can generate in comparison to the cost of the mortgage, instead of being based on your income.
As an experienced mortgage broker, we can help you navigate the requirements of Buy to Let mortgages and find the right deal for you.
Things to consider
All mortgages have risks and benefits. Here are some key things you should know before applying for a Buy to Let mortgage.
What are the benefits?
Get a regular source of income
A Buy to Let property can be a great way to get an additional source of regular income. This can supplement your earnings from your main job, or be a nice top-up during retirement.
Benefit from any property price growth
Investing in a Buy to Let property over a number of years can see you benefit from property price growth. Although it's not guaranteed that house prices will go up, any increase in the property's value will increase the amount of equity you hold.
Diversify your investments
Owning a Buy to Let property can help diversify your investment portfolio, spreading risk across different types of assets.
Accessible affordability
Buy to Let affordability is calculated using your predicted rental yield not your income. So if you already own a home with a mortgage, it could still be possible for you to get the borrowing you need. If you fall short, you can always explore top-slicing.
Risks and considerations
Deposit requirements are higher
With a Buy to Let mortgage, you typically need to put down a downpayment of at least 25-40% of the full property price. This can make it difficult for those with only a small amount saved up to become a landlord.
You'll need to meet the eligibility criteria
To qualify for a Buy to Let property, you will need to meet the lender's eligibility criteria. This often includes being 21 or over, having a good credit score and sometimes earning over a certain threshold. Keep in mind that most lenders won't offer Buy to Let mortgages to first time buyers, so if you've never owned a home before you might find it hard to get approved for a Buy to Let loan.
You may be taxed at a higher rate
Depending on how much you earn through rental income and your other earnings, you may pay different rates of Income Tax.
Being a landlord can be expensive
As well as paying for emergency expenses like broken boilers, as a landlord you also need to be prepared to cover your mortgage repayments during periods when the property is unoccupied.
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The application process
Get a Buy to Let mortgage in 4 simple steps
Make a Tembo plan
In under 10-minutes, we’ll check your eligibility for a Buy to Let mortgage and find the best options for you from thousands of mortgage products. Plus, you’ll get a personalised recommendation including interest rates and repayments.
Talk to an expert
Book a call with our mortgage experts to complete the qualification process. We’ll cover any questions you might have about Buy to Let mortgages and any other buying schemes you might be interested in.
Apply for a mortgage
Once you’ve found a property or when your remortgage is due, your dedicated advisor will undertake full affordability checks to prepare the mortgage application. Then we’ll submit it on your behalf!
Make home happen
Your Tembo advisor will be on hand to ensure everything runs smoothly, so you can move onto your new deal as quickly as possible. If you're starting a new mortgage and need conveyancing, we’ll liaise with the developer or seller and your solicitors to ensure a smooth purchase.
Got questions? We've got answers
See all FAQsFrequently asked questions
Other Buy to Let mortgages
Explore our other Buy to Let mortgages and buying schemes
Buy to Let
Family Buy to Let
Take out a mortgage on a property to rent out to family members like your children, parents or grandparents.
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Let to Buy
Buy a new home to live in, then switch your residential mortgage on your current home to a Buy to Let set up and let it out to tenants.
See detailsBuy to Let
Top slicing
If you have a Buy to Let property and are struggling to cover the mortgage repayments with the rental income alone, top slicing could be the answer.
See detailsLearn more
Other mortgage schemes
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