Buy to let mortgages

Buy to let – new purchase for investment or refinance an existing property

Having a buy to let property could be an investment for yourself or your family.  You may benefit from additional month income and capital gains in the value.  Even with bad credit its possible to purchase or refinance a buy to let.

  • Investment for the future
  • Potential for monthly income
  • Options with no income
  • Refinance to buy additional buy to lets
  • Purchase or Refinance up to 85% of the property value

Buy to let FAQ

If you’re looking to buy a property – or properties – with the purpose of renting it out, you won’t be able to take out a standard mortgage. Instead, you will need to take out a buy to let mortgage (BTL), which are specifically designed for landlords to help purchase an investment rental property.

A BTL mortgage is the same as any mortgage in that you borrow the money you need to purchase the property from a bank or lender and pay this back on a monthly basis with added interest.

With a BTL mortgage, however, there are some key differences, including;

  • A higher deposit amount (usually upwards of 25% of the total value of the property)
  • More expensive fees to pay
  • Typically higher interest rates

These higher costs exist as BTL mortgages are considered more high risk compared to a standard mortgage. This is because unlike other loans, a BTL mortgage relies on the tenant in order to pay it off. There is also the risk that a tenant might stop paying at any point, or you might have difficulty finding anyone to rent the property at all.

Like with all mortgages there are requirements that you need to meet in order to be eligible. Before applying for a buy to let mortgage you should consider the following;

  • You can afford it – As deposits for buy to let mortgages are generally higher than ordinary mortgages you may need to save beforehand. Along with this, you should ensure that you can still afford to pay the mortgage if a tenant leaves or misses any rent payments.
  • You have a good credit record – With a high-risk mortgage, banks and lenders want to know they can rely on you to make your mortgage repayments each month. They will look at your credit record in order to check this and are unlikely to approve your mortgage application if you have a poor credit history.
  • You earn more than £25,000 a year – Typically lenders won’t consider your BTL mortgage application if you earn less than this amount.

It’s likely that you will struggle to get a buy to let mortgage if you don’t already own your own home. If you aren’t in this position it’s recommended that you wait and look for a buy to let property when you are.

When investing in a rental property, you will also need to ensure you can afford the added costs associated with it. This can include; house maintenance, any agency fees to advertise and manage the property and capital gains tax on the rental income where the profit you make is above your annual tax-free allowance. Capital gains tax is also payable if you sell the property for more than you originally paid for it.

For free initial advice from our qualified mortgage brokers about a Buy to Let mortgage, call 0800 197 0504 or click below to request a callback at a time to suit you.

Case Study

Could you get a buy-to-let mortgage?

Our customers Mr and Mrs C were able to:

Get a debt consolidation remortgage, even with a poor credit history Secure a fixed rate of 2.10% Save almost £500 each month on mortgage and debt repayments

 BalancePaymentRateTerm
Current Mortgage£61,000£4901.25%12 Years
Current Secured Loan£43,000£43610%12 Years
Unsecured debts£44,320£657VariousVarious
New Mortgage£150,00£1097.672.10%13 Years

Mr C had been in an IVA, which he’d now completed, and Mrs C was currently in a Debt Management Plan. They wanted to consolidate their secured loan, plus three other debts, into a new mortgage product – hoping that this would bring down their monthly repayments.

At Clever Mortgages we were pleased to be able to help them, and we secured them a new mortgage which is now saving them a significant £485 every month! This is making a real difference to their lives, and helping them get back on track, improving their credit score.

  • Use the Right-to-Buy scheme to buy her council home
  • Benefit from the council’s £62,000 discount on the property
  • Take out a mortgage with a term of 15 years
  • Secure an initial 5 year fixed rate

No obligation advice on a Buy to let mortgage

Quickly see if you could be accepted for a mortgage before you apply

Could you get a mortgage?

Have you ever wondered how much you could borrow?

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How much could you borrow?

Ever wondered borrow?How much can you Find out nowHouse £0£100£1,100£10,000£50,000£100,000£125,000House £125,000£0£0£5,000£10,000£30,000IncomeMortgage £105,000Deposit£0£20,000£10,000£5,000You could borrow between£105,000 £135,000to

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Our mortgage advisors will then speak to you in more detail for a free, no obligation mortgage quote.

Below are some of the lenders we work with

6 Great reasons to choose Clever Mortgages

Specialists in bad credit

Every member of our team is trained in bad credit situations and know how to find the right solutions for customers – helping them get the mortgage that’ll get them back on track.

Over 100 lenders

The number and quality of lenders we work with means we have access to a diverse spectrum of best-rate deals. The lenders we use means we have all areas covered – even for those in particularly niche circumstances.

Experts in bad credit

We have helped 1000’s of people with bad credit. All our advisors are trained on securing mortgages for clients with bad credit. In short, we know this market.

Access To Exclusive Rates

We have access to every adverse friendly lender, we can often secure you exclusive rates you can’t find on the high street.

First class support

We know that sorting out a remortgage can be stressful – but our experienced team of experts will have any questions you have along the way, and will always be proactive when it comes to keeping you in the loop with your application progress.

Excellent Reviews

We’re proud of our long-standing 5 Star Rating on Trustpilot, and love all the positive feedback we get from customers every day. We feel privileged to help people get a great deal with far less stress.

Why use a mortgage broker?

Mortgage brokers help you find the best deals on the market – not just from one lender. With a broker you can expect:

  • Valuable knowledge, through years of experience helping customers to find mortgages
  • Improved chance at finding a mortgage, some mortgages are only available through a broker
  • Help with the application process, often just one application can be used across various lenders
  • Advice on how to improve your chances, for instance getting a guarantor or applying for a joint mortgage

About Clever Mortgages

We specialise in assessing an individual’s situation, and finding the right mortgage solution for them. We can help:

  • With remortgages, buy-to-let, and first-time buyers mortgages. We have experts who cover these areas
  • Even if you’ve got bad credit – we help people every day with a variety of credit histories to find the right mortgage
  • With applications, as we’ll take the hassle away. We require your details once and we’ll know the best lenders for your circumstance
  • Our team know the lenders that are most likely to say ‘yes’, and give you the best rates

What should I do next?

  • You enquire online with us today or request a call back
    Our simple form takes a couple of minutes to fill in, this gets the ball rolling
  • One of our experts will give you a call to find out more about your situation
    We have experts in remortgaging, who focus solely on helping customers save money
  • We do all the hard work for you
    We search the market for the trusted lender that’s right for you
  • Our expert will get back in touch
    We can guide you every step of the way, and we’ll always keep you up-to-date with progress
Meet the team

Josh Widdowson

Customer Service is at the forefront of Josh’s role, being part of the front line team he ensures that your enquiry is dealt with in a timely manner.

Call us on: 0800 197 0504