Back to MortgagesBuy to Let
Looking to let out a property? We've got your questions covered with our helpful guide, so that you can feel more confident.
What is a Buy to Let mortgage?
A Buy to Let mortgage is like a Residential one, you still buy a property. The difference is that you’re buying a property to rent to others, instead of living in it yourself. However, there are three key differences:
- The amount you can borrow with a Buy to Let mortgage will depend on certain criteria, such as how much rent you expect to get from the property
- You generally need a bigger deposit with a Buy to Let mortgage and interest rates tend to be higher than a residential mortgage
- Most Buy to Let mortgages are not regulated by the Financial Conduct Authority
Steps to getting a mortgage with us
Step 1
What you could borrow
Find out how much you could borrow and your estimated monthly payments.
Step 2
Compare our products
We have a range of different types of Buy to Let mortgages. See which one could suit you.
Step 3
Get your Decision in Principle
Book a non-advised appointment with a member of our mortgage team to get your Decision in Principle.
What we offer
We do not provide advice for our Buy to Let mortgages.
Applying through us
There are some mortgages you can apply for directly through us. These are:
Standard Buy to Let MortgagesMortgages for people buying or remortgaging a property to rent out.
Holiday Let Mortgages
Mortgages for buying a holiday property to let or use yourself.
HMO (Houses in Multiple Occupation) Mortgages
HMO mortgage products offer you even more lending options in the Buy to Let market.
Applying through a broker
You need to apply through a mortgage broker for our more specialised mortgages:
Limited Company Buy to Let Mortgages
These mortgages are for taking a mortgage on a property through a limited company, rather than in your own name.
Portfolio Buy to Let Mortgages
These are mortgages for borrowers who have four or more distinct mortgaged Buy to Let UK rental properties.
Applying for a mortgage
What you need to apply
- Details of your deposit and where it's coming from
- Information about the type of property you're looking to buy
- Last 3 months of payslips, or the latest 2 years of self-assessments if you're self-employed
- Last 3 months' bank statements
- Details of any property you own, including the outstanding balance on your mortgage, remaining term, account number and the monthly payment amount
- Details of any financial commitments, such as credit cards, loans or childcare costs
How to apply
You’ll need to book a non-advised appointment with our Buy to Let specialists for:
- Buy to Let
- Houses in Multiple Occupation (HMO)
- Holiday Let
For any other mortgage applications, you’ll need to apply through a broker.
Your rental property could be repossessed or a receiver of rent appointed, if you don’t keep up your mortgage repayments.
Existing mortgage members
What would you like to do?
Landlords insurance
If you rent out a property, landlords insurance is there to protect you in case things go wrong.
We offer a 5-star Defaqto rated Landlord insurance policy through Uinsure. This policy is designed to protect the buildings and/or contents of the let property. There are also options to include emergency cover, legal protection and rent guarantee.
Landlord responsibilities
Buy to Let landlords have health and safety, legal and financial obligations to meet.
Frequently asked questions
Typically, a Buy to Let mortgage will require a larger deposit and charge a higher rate of interest when compared to a normal residential mortgage. As with any loan, it depends very much on your personal circumstances, including things like your credit record and any existing debts you may have.
The amount you can borrow with a Buy to Let mortgage depends on how much you expect the property to earn in rent. Something called an Interest Coverage Ratio is used to make sure your rental income is enough to cover the total cost of your mortgage and associated fees.
Typical fees that come with a Buy to Let mortgage are a valuation fee, conveyancing, stamp duty and if you use one, a broker's fee.
With Buy to Let, you're purchasing somewhere to rent out to others. Whereas Let to Buy means moving out of your current home so you can rent it out and buy somewhere else to live.
If you’re an existing member with a residential mortgage and you’re wanting to rent a room, you’ll need to contact us to ask. For contact information, please visit Help and Contact.
If you’re a new customer looking to get a residential mortgage with us, you’ll receive a Declaration by Occupier (opens in a new tab) document during the application process. This document is to be filled out by yourself and any other person occupying the property aged 17 and over.
It may also be worth considering the government's rent a room scheme (opens in a new tab).
Depending on when your new mortgage starts and your chosen payment date, the first mortgage payment covers one or two monthly payments, plus initial interest. This will be confirmed in writing once your mortgage starts. If you have any questions, please visit Help and Contact.
