What is a BTL mortgage?


A buy to let mortgage is a loan for purchasing or refinancing residential property which is let to tenants rather than lived in by the borrower.


Classed as a business transaction, rates and fees are typically higher than those you would find with a standard residential mortgage.


Most BTL mortgage lending is not regulated by the Financial Conduct Authority (FCA).


Buy-to-let mortgages are different to ordinary residential mortgages because the amount you borrow doesn’t depend on how much you earn, although if you earn less than £25,000 you may find it hard to get a buy-to-let mortgage – that’s where our expert advice comes in!


You can often take out an interest only mortgage if it’s buy-to-let.


The minimum deposit is normally at least 25% of the property’s value.


Why do I need a BTL mortgage?


If you’re buying a house to rent out and you want to take out a mortgage, you’ll need a buy-to-let mortgage.


When working out how much you can borrow a mortgage lender will take several factors into account such as:

  • How much rent you will be able to charge. The rent should normally be at least a quarter higher than you monthly mortgage payments.
  • How big your deposit is?
  • They will often also want to see that you can pay the mortgage if the house is and that you can afford the payments if the interest rate on your mortgage were to rise.


What we will discuss:

  • Our exclusive mortgage rates
  • How much do you need to borrow?
  • How much deposit you have?
  • How many properties do you currently own?
  • The difference between an interest only product or a repayment mortgage.


The majority of buy to let mortgages can only be accessed via intermediaries, so you will be limiting your options if you choose to go direct.

Get in touch today