Buy to Let Mortgages
- Buy-to-let mortgages are designed specifically for property investors purchasing a property for the rental market.
- Buy-to-let products include all the usual mortgage types such as fixed rate and tracker rate.
What are you looking to do?
Your home may be repossessed if you do not keep up repayments on your mortgage.
Our mortgage comparison service lists products from featured lenders with whom we have a direct commercial arrangement with. The mortgage data above was supplied by Moneyfacts Ltd and is updated at the time of mortgage search. The figures and data provided in our tables are for illustration purposes only. While we make every effort to ensure the accuracy of this data you should always confirm the terms on offer with the provider/broker. We do not give any financial advice.
Buy to Let Mortgages FAQs
What is a buy to let mortgage?
A buy to let mortgage is a mortgage on a property which you rent out to a tenant rather than live in yourself.
Are buy to let mortgages more expensive than residential mortgages?
Yes buy to let mortgages tend to have a higher rate than residential mortgages.
What criteria must I meet to take out a buy to let mortgage?
Along with the general criteria all mortgage lenders require, including having a good credit score and being within the lender's age limits, to take out a buy to let mortgage you'll usually need at least a 25% deposit. A number of lenders will also require you to own your own home (or have a residential mortgage on a property).
How much can I borrow with a buy to let mortgage?
The amount you can borrow will depend largely upon how much you're able to rent the property out for. As such, it's essential that you research the rental market in the area in which you're buying before making a purchase. Lenders will also look at your credit score and your outgoings.
Do I need a larger deposit to take out a buy to let mortgage?
Most mortgage lenders will require a deposit of at least 25% of the property value to take out a buy to let mortgage.
Do I need to own my home to take out a buy to let mortgage?
While most lenders would want you to have your own home before taking out a buy to let mortgage, it is possible to get a buy-to-let mortgage as a first time buyer. Your choice of products will be reduced however and you may be deemed a higher risk and have to stump up a higher deposit as a result.
What fees will I pay for a buy to let mortgage?
Just like with residential mortgages the main fees that apply to buy to let mortgages are booking fees, arrangement fees, valuation fees and legal fees - although not all fees apply to all products. Be warned however that some buy to let mortgages feature a higher arrangement fee than residential mortgages.
You'll also pay a CHAPS fee to your lender for transferring the funds to your solicitor. This is usually no more than £50.
What is a rental yield?
The rental yield is the income you make from renting the property out and is presented as a percentage of your property value. For example, if the property costs £100,000 and you rent it out for £10,000 per annum your rental yield is 10%.
What is a rental coverage requirement?
A rental coverage requirement is the minimum amount of rent you have to be able to achieve each month to obtain a mortgage. It is set as a percentage of the monthly mortgage repayments. Each lender will have their own rental coverage requirements but the industry average is between 125% and 145% meaning you have to be able to secure up to 45% more than your monthly mortgage repayment in rent to get the loan.
What are the benefits of a buy to let mortgage?
If you want to invest in property and can't afford to buy it outright, then a buy to let mortgage is your only option. Rental properties can provide an income and/or grow in value, but it is important to fully research the rental market and be prepared for long term investment.
What potential downsides should I be aware of?
Higher tax charges can apply to rental properties including higher Stamp Duty surcharges that those of residential homes. You should also consider what you will do if you struggle to rent out the property or have a long period with no tenants. When working out your budget be sure to factor in the costs involved with running a property, including letting agent costs, maintenance costs, etc.
How can I compare buy to let mortgages?
Buy to let mortgages are more complex than residential loans so it's important you're given all of the figures and facts clearly and concisely. Know Your Money's free to use comparison tables allow you to sort buy to let mortgages by rate, fees and overall cost to give you the clearest view of what's on offer.
- Accord Mortgages
- Airdrie Savings Bank Mortgages
- Allied Irish Bank (UK) Mortgages
- Bank of China (UK) Ltd Mortgages
- Bank of Ireland (NI) Mortgages
- Barclays mortgages
- Bath Investment & Building Society Mortgages
- Beverley Building Society Mortgages
- BM Solutions Mortgages
- Buckinghamshire Building Society Mortgages
- Cambridge Building Society Mortgages
- Chelsea Building Society Mortgages
- Chorley & District Building Society Mortgages
- Cumberland Building Society Mortgages
- Danske Bank Mortgages
- Darlington Building Society Mortgages
- Earl Shilton Mortgages
- Ecology Building Society Mortgages
- Family Building Society Mortgages
- First Trust Bank (NI) Mortgages
- Fleet Mortgages
- Foundation Home Loan Mortgages
- Furness Building Society Mortgages
- Godiva Mortgages
- Halifax mortgages
- Hanley Economic Building Society Mortgages
- Hinckley & Rugby Building Society Mortgages
- Holmesdale Building Society Mortgages
- Investec Private Bank Mortgages
- Ipswich Building Society Mortgages
- Kensington Mortgages
- Kent Reliance Mortgages
- Leek United Mortgages
- Lloyds Bank Mortgages
- Loughborough Building Society Mortgages
- Manchester Building Society Mortgages
- Mansfield Building Society Mortgages
- Market Harborough Building Society Mortgages
- Marsden Building Society Mortgages
- MBS Lending Mortgages
- Melton Mowbray Building Society Mortgages
- Metro Bank Mortgages
- Monmouthshire Building Society Mortgages
- Mortgage Trust Mortgages
- National Counties Building Society Mortgages
- Nationwide Mortgages
- Newbury Building Society Mortgages
- Norwich & Peterborough Mortgages
- Nottingham Building Society Mortgages
- Paragon Mortgages
- Penrith BS Mortgages
- Penrith Building Society Mortgages
- Pink Home Loan Mortgages
- Platform Mortgages
- Precise Mortgages
- Principality Building Society Mortgages
- Progressive Building Society Mortgages
- Saffron Building Society Mortgages
- Santander Mortgages
- Scottish Building Society Mortgages
- Scottish Widows Bank Mortgages
- Skipton International Mortgages
- Stafford Railway BS Mortgages
- Teachers BS Mortgages
- Tesco Bank Mortgages
- The Co-Operative Bank Mortgages
- The Mortgage Works Mortgages
- Tipton & Coseley Mortgages
- Tipton and Coseley BS Mortgages
- TSB Mortgages
- Vernon BS Mortgages
- 0% Deposit
- 1 Year Fixed Rate Mortgages
- 10 Year Fixed Rate Mortgages
- 10% Deposit Mortgages
- 100% Mortgages
- 15% Deposit Mortgages
- 2 Year Fixed Rate Mortgages
- 2 Year Fixed Rate Remortgages
- 20% Deposit Mortgages
- 3 Year Fixed Rate Mortgages
- 4 Year Fixed Rate Mortgages
- 5 Year Fixed Rate 90% LTV Mortgage
- 5 Year Fixed Rate Mortgages
- 5 Year Fixed Rate No Fee Mortgages
- 5 Year Fixed Rate Offset Mortgages
- 5 Year Fixed Rate Remortgages
- 5 Year Plus Fixed Rate Mortgages
- 5% Deposit Mortgage
- 50% LTV Mortgage
- 60% LTV Mortgages
- 65% LTV Mortgages
- 70% LTV Mortgages
- 75% Fixed Rate Mortgages
- 75% LTV Mortgages
- 80% LTV Mortgages
- 80% LTV Remortgages
- 80% Mortgages
- 85% LTV Mortgages
- 85% LTV Remortgages
- 85% Mortgages
- 90% Fixed Rate Mortgages
- 90% LTV Mortgages
- 90% LTV Remortgages
- 90% Mortgages
- 95% Fixed Rate Mortgages
- 95% LTV Mortgages
- 95% LTV Remortgages
- 95% Mortgages
- Bad Credit Mortgages
- Buy to Let 15% Deposit Mortgages
- Buy to Let 50% LTV Mortgages
- Buy to Let 60% LTV Mortgages
- Buy to Let 70% LTV Mortgages
- Buy to Let 75% LTV Mortgages
- Buy to Let 80% LTV Mortgages
- Buy to Let Fixed Rate Mortgages
- Buy to Let Mortgages
- Buy to Let No Fee Mortgages
- Buy to Let Remortgages
- Cashback Mortgages
- Compare Mortgages
- Compare Mortgages
- Current Account Mortgages
- Discount Mortgages
- First Time Buyer Help to Buy Mortgages
- First Time Buyer Mortgages
- First Time Buyers 100% Mortgages
- First Time Buyers 5% Deposit Mortgages
- First Time Buyers 75% LTV Mortgages
- First Time Buyers 80% LTV Mortgages
- First Time Buyers 85% LTV Mortgages
- First Time Buyers 90% LTV Mortgages
- First Time Buyers 95% LTV Mortgages
- Fixed Rate Interest Only Mortgages
- Fixed Rate Mortgages
- Fixed Rate No Fee Mortgages
- Flexible Mortgages
- Interest Only Mortgages
- Interest Only Remortgages
- Low Deposit Mortgages
- Lowest Fixed Rate Mortgages
- Mortgage Calculator
- Mortgage Deals
- No Fee Mortgages
- No Fee Remortgages
- Offset Flexible Mortgages
- Offset Mortgages
- Offset No Fee Mortgages
- Repayment Mortgages
- Residential Mortgages
- Residential Remortgages
- Right to Buy Mortgages
- Shared Ownership
- Shared Ownership Mortgages
- Top 10 Mortgages
- Tracker Mortgages
- Tracker Remortgages
- Variable Rate Mortgages
Knowyourmoney.co.uk is a free service with no charge to the user, for more details on how our site works click here.
Knowyourmoney.co.uk is a trading style of Notice Media Ltd, Registered Office: Floor 3 Haldin House, Old Bank of England Court, Queen Street, Norwich, Norfolk NR2 4SX Registered in England & Wales No 05409985 and also in accordance with the Data Protection Act (1988) Registration Number: Z955517X
Notice Media is authorised and regulated by the Financial Conduct Authority, FRN 771521. In respect of consumer credit, knowyourmoney.co.uk acts as a credit broker - not a lender.