Buy to Let Mortgages
Unlock Your Property Investment Potential
Investing in property is an exciting opportunity, but securing the best buy-to-let mortgage can make all the difference in maximizing your returns. Whether you're purchasing your first rental property or expanding your portfolio, we're here to help.
What Is a Buy to Let Mortgage?
A buy-to-let mortgage is designed for property investors who want to purchase property to rent out. Unlike residential mortgages, these loans are assessed on the potential rental income of the property rather than just your personal income.
Key features of a buy-to-let mortgage:
Higher Deposits: You'll typically need at least a 25% deposit, though some lenders may require more depending on the property and your financial situation.
Interest Rates: These are often slightly higher than residential mortgages due to the nature of the investment.
Compare and calculate two fixed-rate interest-only buy-to-let mortgages using our calculator.
Not all Buy to Let mortgages are regulated by the Financial Conduct Authority.
What Kind of SPV Code Is Needed for a Limited Company Buy to Let?
If you're considering a limited company buy-to-let mortgage, setting up a Special Purpose Vehicle (SPV) is a key step. An SPV is a type of limited company created specifically to manage property investments.
Lenders usually require your SPV to have a specific Standard Industrial Classification (SIC) code that aligns with property letting and management. Commonly accepted SIC codes include:
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68100: Buying and selling of own real estate.
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68209: Other letting and operating of own or leased real estate.
Using the correct SIC code ensures that lenders recognize your company as a legitimate property investment vehicle, improving your chances of mortgage approval.
Why Is an SPV Important?
An SPV makes the process of obtaining a buy-to-let mortgage under a limited company straightforward, as lenders prefer this structure for its simplicity and focus on property activities.
Not sure where to start? Our mortgage brokers can guide you through setting up an SPV and choosing the right SIC code to meet lender requirements.
How Much Deposit Do I Need for a Buy to Let Mortgage?
For a standard buy-to-let mortgage, most lenders require a deposit of around 25% of the property value, though it could be higher depending on individual circumstances.
For example, if you're purchasing a property worth £200,000, you’d typically need at least £50,000 as a deposit.
Having a larger deposit can:
✅Increase your chances of approval.
✅Give you access to better interest rates.
Why Use a Mortgage Broker for Your Buy to Let Mortgage?
6 Benefits of Using a Mortgage Broker
Exclusive Deals
Many brokers have access to exclusive buy-to-let mortgage rates that aren't available directly to the public, giving you a wider range of options to choose from.
Convenience
From comparing mortgage deals to managing paperwork and liaising with lenders, brokers handle the heavy lifting so you can focus on your investment.
Whole-of-Market
A broker searches the entire mortgage market, including niche lenders, to find the best mortgage tailored to your financial situation and investment goals.
Complex Criteria
Buy-to-let mortgages often involve detailed criteria, such as rental income requirements or limited company structures. A broker ensures your application meets these standards.
Tailored Advice
Every property investor is unique, and a broker provides personalized recommendations, whether you’re a first-time landlord or building a property portfolio.
Ongoing Support
A good broker doesn’t just help you secure your first buy-to-let mortgage—they’re there to assist with remortgaging, expanding your portfolio, or navigating changes in the market.
Document Checklist for Buy to Let Mortgage
1. Proof of Identity
Lenders need to confirm your identity with one of the following documents:
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Passport (valid and up to date)
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Driving license (with your current address)
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National ID card (if applicable)
2. Proof of Address
Provide two of the following to verify your current address:
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Utility bills (dated within the last 3 months)
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Council tax statement
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Recent bank or credit card statement
3. Proof of Income
To confirm you can meet mortgage repayments, provide evidence of your income:
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Employed Applicants:
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Last 3 months’ payslips
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Latest P60
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Employment contract (if recently started a new job)
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Self-Employed Applicants:
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Last 2-3 years’ tax returns (SA302 forms)
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Recent bank statements showing income deposits
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Accountant-prepared financial statements
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4. Bank Statements
Submit the last 3-6 months of personal and/or business bank statements. These should show:
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Regular income deposits
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Any existing mortgage payments
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Financial stability
5. Proof of Deposit
Lenders will require evidence of your deposit for the property. Acceptable proof includes:
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Savings account statements
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Gift letter (if deposit is gifted)
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Evidence of bonus or other funding sources
6. Property Details
You’ll need to supply details about the property you intend to purchase, including:
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The property address
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Rental income projections
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Letting agent estimates or agreements
7. Portfolio Information
If you already own rental properties, lenders may request:
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Details of your existing portfolio
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Mortgage statements for current properties
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Rental income documentation
8. Credit History
Lenders will check your credit score and history to assess your financial responsibility.
9. Additional Documents
Depending on your circumstances, additional documents might include:
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Proof of additional income (e.g., dividends or rental income from other properties)
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Business accounts (if you’re a professional landlord)
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ID verification for any additional applicants or guarantors
10. Conveyancer Details
You will need to provide your conveyancer's detail when applying a mortgage. Find your conveyancer here.
Mortgage Calculators
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Is there a fee for your service?Typically we charge a fee of £500 for arranging a mortgage, however the actual fee will depend on your circumstances and if more work is required then we could charge more than this but we will make you aware at the start of the process.
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What is the difference between paid and free brokers?You are about to make your largest purchase in your life. You want the best people on your team. We are the one for you. We are a customer-focused mortgage broker and will deliver the highest level of professionalism and service to your home buying journey. A free mortgage broker gets paid by the bank only and their advice might be biased towards banks that pay them a higher fee. Also, free mortgage broker often does not provide the same level of service and care to their customers as they need to write tons of mortgages to be profitable, which means they do not treat customer with the attention to detail and care you deserved.
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Is your mortgage advice impartial?This is what makes us different from other free online mortgage brokers. We never recommend a product based on how much the lender is compensating us. Instead, we provide professional and impartial mortgage advice to ensure you are treated fairly.
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Should I go with my bank directly rather than using a mortgage broker?Going directly with a bank means you will miss out on other cheaper lenders on the market. Using a mortgage broker often saves you money, and we will also help you relieve the stress of buying a home as we will handle all the research and paperwork for you.
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Are your mortgage brokers qualified and regulated?Our mortgage brokers are CeMAP qualified, and we are regulated under the Financial Conduct Authority (FCA). FCA number 1023518.
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What other services do you provide?We are a one-stop-shop for your homebuying journey. We provide protection (insurance) advise, and we also help you with conveyancing and survey for your home.
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Is your service available online or in person?We offer flexible consultation online or over the phone so you don't have to travel to our office.
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What is a first-time buyer mortgage?A first-time buyer mortgage is a home loan designed for individuals purchasing their first property, often featuring benefits like lower deposits and access to government schemes.
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How much deposit do I need as a first-time buyer?Typically, first-time buyers need a deposit of at least 5% of the property's value. However, a larger deposit can secure better mortgage rates.
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What government schemes are available for first-time buyers?Schemes like Help to Buy, Shared Ownership, and Lifetime ISAs assist first-time buyers in purchasing a home. Learn more in our Knowledge Hub.
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How much can I borrow for my first mortgage?Lenders typically offer 4.5 to 5 times your annual income. However you might able to borrow much more as a first-time buyer. Use our Affordability Calculator to estimate your borrowing potential.
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What is stamp duty, and do first-time buyers need to pay it?Stamp duty is a tax on property purchases. In some regions, first-time buyers are exempt up to a certain property value. Check current thresholds in our Knowledge Hub.
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How does my credit score affect my mortgage application?A higher credit score can improve your chances of mortgage approval and access to better rates. Learn how to boost your score in our Knowledge Hub.
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Should I choose a fixed or variable interest rate mortgage?Fixed rates offer consistent payments, while variable rates can fluctuate. Consider your financial stability and risk tolerance. Contact us for personalized advice.
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What additional costs should I budget for when buying a home?Beyond the deposit, consider expenses like legal fees, surveys, moving costs, and home insurance. Our Knowledge Hub provides a comprehensive list.
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How long does the mortgage application process take?The process typically takes 4 to 8 weeks, but this can vary. Start early to accommodate any delays.
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Can I get a mortgage with a low income?Yes, though your borrowing amount may be limited. Government schemes and lenders with flexible criteria can assist. Explore options in our Knowledge Hub.
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What is an Agreement in Principle (AIP)?An AIP is a lender's indication of how much they'd be willing to lend, based on your financial situation. It's useful when house hunting.
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Do I need a mortgage broker?While not mandatory, a broker can provide access to a wider range of deals and offer expert advice tailored to your needs. Contact us to connect with our experienced brokers.
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What is the difference between freehold and leasehold properties?Freehold means you own the property and the land it's on; leasehold means you own the property for a set number of years but not the land. Learn more in our Knowledge Hub.
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Can I use a gifted deposit for my mortgage?Yes, many lenders accept gifted deposits, typically from family members. Proper documentation will be required.
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What is a mortgage in principle, and how does it differ from a formal offer?A mortgage in principle is an initial estimate of what you can borrow; a formal offer is a binding agreement from the lender after full assessment.
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How does being self-employed affect my mortgage application?Self-employed applicants may need to provide additional proof of income, such as tax returns and business accounts. Our Knowledge Hub offers detailed guidance.
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What is Loan-to-Value (LTV) ratio?LTV is the percentage of the property's value that you're borrowing. A lower LTV can lead to better mortgage rates. Calculate your LTV with our Mortgage Calculator.
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Can I make overpayments on my mortgage?Many mortgages allow overpayments, which can reduce the loan term and interest paid. Check for any early repayment charges.
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What happens if my mortgage application is declined?If declined, assess the reasons, improve your financial situation, and consider seeking advice from a mortgage broker. Contact us for assistance.
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How do I choose the right mortgage term?Shorter terms mean higher monthly payments but less interest over time; longer terms have lower payments but more interest. Use our Mortgage Calculator to compare options.