Buy to let mortgages in the UK are by no means straightforward. But if you’re planning on buying a property to rent out, you’ll need to research buy to let mortgages carefully – whether you’re a first time investor or an experienced professional landlord. And, as you may already have discovered, you could encounter some hurdles.
Across the board, buy to let mortgages have become more challenging to secure in recent years, due to increasingly stringent affordability guidelines and regulations. Complicating matters further, these regulations are always subject to change – as is the availability of the best buy to let mortgage deals.
What you need to know about buy to let mortgages in the UK
Mainstream lenders will have similar buy to let mortgage criteria. For example, many will cap out their lending at 75% loan to value (LTV), while for casual landlords, some lenders will expect you to have a minimum annual salary outside of any expected rental income. Buy to let mortgage fees are often higher upfront, too.
A number of changes have impacted the availability of buy to let mortgage deals. For example, in 2017, the UK’s Prudential Regulation Authority (PRA) suggested changes to underwriting standards, meaning the rent you achieve for a property should now cover 145% of the mortgage at an interest rate at 5.5%.
In reality, this isn’t a hard and fast rule – and this, along with other buy to let mortgage criteria, will very much depend on your personal circumstances.
Why should you use a buy to let mortgage broker?
Although the UK’s buy to let market is more complicated and difficult to navigate than it once was, the reality is that high quality rental properties will always be in demand.
So, with the right planning, buying property to let remains a strong investment, and it’s a world that’s full of opportunity, whether you’re looking for a long-term investment to sit alongside your existing career or are a full time professional landlord.
The secret to success often lies in the details – so arranging the right sort of buy to let mortgage is essential. Our expert buy to let mortgage brokers can help.
Buy to let mortgages for new landlords
If you are hoping to enter the world of buy to let property, you may be uncertain about the nuances of buy to let finance. We can source the best possible buy to let mortgage for your situation, whether you’re buying a luxury property in London or a block of flats in Liverpool.
Buy to let mortgages for professional, experienced or portfolio landlords
We work extensively with experienced UK landlords, many of whom have complex financial situations owing to their portfolio of buy to let assets. Whether you have three properties or thirty, we have the expertise to source the best buy to let mortgage deal for your new purchase.
Meanwhile, our close working relationships with lenders across the UK means that we can negotiate bespoke mortgage deals. For more information on mortgages for portfolio landlords, click here.
Our specialist mortgage brokers are highly experienced in negotiating the best mortgages and mortgage rates, no matter how complex your situation.
With over 20 years’ combined experience sourcing the best mortgage deals for global clients, our brokers have the skills, knowledge, and lender relationships to turn your property aspirations into a reality. To find out how we do it, explore our case studies.View our case studies