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By Pete Mugleston   Mortgage Advisor

Last updated: 12th July 2018

For many investors buy to let mortgages can be a doddle, but for other would be landlords, things can be much trickier. The good news is that we work with specialist buy to let mortgage advisors who have access to every lender in the UK, so if there’s a mortgage out there you’ll find it. If you’ve been declined by a bank or another broker, get in touch – they may just have what you’re looking for.

There’s loads of reasons why our buy to let readers make enquiries to us - sometimes it’s hard to know who is going to approve you as buy to let criteria is so different lender to lender. A lot of our visitors are looking for buy to lets from a range of circumstances, and below are just some of the successful application types made on a daily basis:

  • Bad credit buy to lets
  • No income buy to lets
  • Buy to lets with sitting tenants
  • Expat buy to let
  • Buy to let through ltd companies
  • First time buyer buy to let
  • New landlords
  • Experienced landlords
  • Multiple property portfolio landlords
  • And many more…

Whatever your situation, one of the dedicated buy to let mortgage advisors will take you through the calculations, the facts and figures, the mortgage approval, the offer, right through to exchange of contracts and moving in… basically the entire process start to finish. Get in touch to find out what you'd be eligible for.

I want a buy to let mortgage, how much can I borrow?

This is a common question as it’s not just a case of multiplying your basic salary by 4 like with a lot of main residential lenders, there’s a lot more to it. It mainly depends on Loan to value (LTV) & rental valuation. For the science behind how it works read on, or to jump straight to the answer visit our buy to let calculator page.

  • LTV - Usually the maximum available on a buy to let is 75% with most lenders (but can be up to 80% for experienced landlords in certain circumstances). So if the property values at £100k, then the maximum loan would be £75k. BUT, if the rental valuation is not high enough then this could be lower...
  • Rental valuation - The overall investment has to show that the mortgage payments are supported by the rental income to an appropriate amount to account for any gaps in rent or rise in interest rates, sufficient to satisfy the lender. The way this is calculated changes lender to lender and can be very complex, so is usually best left to your buy to let broker. Below is an example of how maximum lending is effected by rental valuations and lender criteria. Basically, lenders usually require the rental income to be 125% - 130% of the mortgage payments, and they calculate the mortgage payments using either the actual mortgage rate applied for (pay-rate), or at a set rate of 5+%.

Example: So if a lender requested 125% coverage when calculated using a 6% rate, a 75k mortgage would be a payment of £375pm, so the rental income would have to value at approx. £469pm. If the rental income only valued at £450pm for example, then the maximum mortgage payment allowable would be £360pm, which would be equal to a maximum loan of £72,000.

Confused? Don't worry! Your advisor will do all the maths for you. We work with buy to let mortgage brokers in London and south, Nottingham and Midlands, Manchester and North, Wales & Scotland, and others who can help potential borrowers across the whole of the UK.

If you're ready to make an enquiry please fill out our quick form below and an expert will be in touch ASAP. If you require immediate assistance please call 0800 304 7880.

Updated: 12th July 2018
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FCA disclaimer

The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage.

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