Buy To Let Mortgages
- Independent buy to let mortgage advice from experienced advisers
- Access to a wide range of buy to let mortgage lenders and products
- Tailored support for first-time and experienced landlords
- Free, no-obligation meeting in Dorset or online
What Is A Buy To Let Mortgage?
A buy to let mortgage is a specialist loan used to buy a property you plan to rent out, rather than live in yourself. It works like a normal mortgage, but lenders assess your application based on the expected rental income as well as your financial situation.
Because the lender is taking extra risk, these mortgages often require a larger deposit and may have higher interest rates than standard residential mortgages.
How Do Buy To Let Mortgages Work?
Buy to let mortgages are usually structured so that your rental income covers the monthly mortgage costs – most lenders expect the rent to be at least around 125% of your mortgage payments to account for costs and void periods.
There are two main repayment options:
- Interest-only – you pay only the interest each month, keeping monthly costs lower, and repay the loan amount at the end of the term.
- Repayment – you pay interest and some of the capital each month so the loan is cleared by the end of the term.
Your lender will also consider things like your credit history, deposit size, and how much rent the property is expected to generate.
What You Need To Apply
To start a buy-to-let mortgage application, lenders will typically ask for a set of financial and personal documents so they can assess your suitability and affordability:
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Proof of Identity Proof of identity and address (e.g., passport, driver’s licence, recent utility bill)
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Deposit Details Details of your deposit and where it’s coming from (savings, sale proceeds, etc.)
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Evidence of Income Recent payslips if employed, or tax returns/SA302s if self-employed
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Bank Statements Latest bank statements to show income and outgoings.
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Existing Properties Information on any existing properties you own and any rental agreements.
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Minimum Deposit A minimum deposit, often around 25% of the property value, though some lenders may accept 20% or more depending on circumstances
How To Apply
To apply for a buy-to-let mortgage you’ll typically:
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Check Your Eligibility Lenders usually require you to be a UK resident aged 18 or over with a good credit history and a sufficient deposit.
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Book An Appointment With An Advisor This will help identify suitable lenders and products tailored to your situation.
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Gather Documentation Submit the documents listed above to support your application.
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Submit Application This may be completed with support from a mortgage adviser or broker.
How Much Could You Borrow?
The amount you may be able to borrow for a buy to let mortgage depends on your personal finances and the rent you expect to receive from the property. Lenders generally use the projected rental income, along with your deposit and credit profile, to assess how much they’re willing to lend.
They typically look for the anticipated rent to exceed the mortgage payments by a buffer to allow for void periods and other costs.
For example:
Annual rental income = £950 per month × 12 = £11,400
Property value = £180,000
Rental yield = £11,400 ÷ £180,000 × 100 = 6.3%
In this example, the rental yield works out at 6.3%, which suggests a healthy income stream relative to the property price. A stronger rental yield can support a higher borrowing amount because the expected rent is more likely to cover the lender’s income coverage tests.
This is just an illustration – one of our advisers can give you a realistic borrowing estimate based on your exact plans and financial circumstances.
Our Property Finance Services
Buy-to-Let Mortgages
Helping landlords and investors secure financing for rental properties, ensuring the best mortgage rates and terms for long-term profitability.
Re-Mortgaging
Reviewing existing mortgage deals to secure better interest rates, reduce monthly repayments, or raise additional capital.
Equity Release Schemes
Guidance on accessing capital from your home through lifetime mortgages or home reversion plans while maintaining financial stability.
First-Time Buyer Mortgages
Helping first-time buyers navigate the mortgage process, ensuring access to competitive rates and government-backed schemes where applicable.
Frequently Asked Questions
Below you will find the most common questions we are asked about Buy To Let mortgages.
What is a buy-to-let mortgage and how does it work?
Who is eligible for a buy-to-let mortgage?
How much deposit do I need for a buy-to-let property?
Buy-to-let mortgages usually require a larger deposit than residential mortgages.
The standard deposit is around 25% of the property price.
Some lenders may consider 20% or even 15%, but these deals are less common and often come with higher interest or stricter criteria.
What interest rates are available on buy-to-let mortgages?
Can I get a buy-to-let mortgage as a first-time landlord?
How much rental income do I need to qualify for a buy-to-let mortgage?
Are buy-to-let mortgages available through a limited company?
What fees and costs are involved in a buy-to-let mortgage?
Costs can include:
Arrangement or product fees charged by the lender
Valuation and legal fees on the property
Broker/adviser fees (if using an intermediary)
Early repayment charges if you exit a product early
Plus ongoing costs like insurance, maintenance, letting agent fees, and tax implications.
Can I remortgage an existing buy-to-let property?
Should I use a buy-to-let mortgage adviser when investing in property?
How Our Property Finance Experts Can Help
Tailored Property Finance Advice
Our financial specialists provide tailored advice for individuals, investors, and businesses looking to finance property purchases or release funds from existing assets.
Mortgage & Refinancing Solutions
Whether you’re a first-time buyer seeking guidance on mortgage options, a landlord expanding a property portfolio, or a homeowner looking to refinance, we help you access the best financial products for your situation.
Equity Release & Wealth Unlocking
We also offer expert support on equity release schemes, allowing homeowners to unlock value from their property in a tax-efficient way while maintaining financial security.
Market-Wide Lending Support
With access to a broad range of lenders and mortgage providers, we ensure you receive unbiased, market-wide advice to secure the most competitive terms.
The Process
Initial referral or inquiry
Whether you’ve been referred or inquired yourself, our team will reach out to you in a timely manner
Free consultation
We offer a no-cost, no-obligation meeting at one of our offices, or over the phone
Quote and setup
We’ll provide you with a tailored quote and when you’re ready, our tax advisors will begin services
Book a Meeting
If you would like to discuss further, please book a meeting with an experienced member of our team. Simply let us know when’s best for you and we will get in touch to arrange a suitable time.
Why Choose Ward Goodman?
Client satisfaction is paramount to us. We have a broad range of clients, and we endeavour to offer them the best tax planning service possible through continuous improvement and focus on doing things right the first time.
Experienced Advisors & Accountants
Our Dorset-based team can advise and support any size of business locally or nationwide.
Bespoke Financial Advice & Tax Planning Service Packages
Flexible, bespoke service covering all aspects of tax planning.
Access to a Full Team of Finance Experts
From our Financial Advisors to Pension Advisors.
Our Awards and Accreditations
Ward Goodman’s excellence in accounting and tax advice is validated by notable awards and accreditations within the UK financial industry.
AAT Qualified
Xero Certified
ICAEW Membership
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