Buy to Let Mortgage

When buying a property to rent out a landlord might consider a buy to let mortgage (or BTL mortgage). There are some differences between a normal mortgage and a buy to let mortgage, but they are similar in most respects.

There might be some unusual circumstances surrounding your client's situation, however. In these cases, a complex buy to let mortgage might be better for your client.

Access to buy-to-let lenders can be restricted for brokers. That’s because most providers will only lend through approved distributors such as Enterprise.

Not only do we give you access to a panel of the best complex buy-to-let lenders, but Enterprise also simplifies the process for you, by seeing your client’s application through from its first enquiry all the way through to its completion.

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Buy-to-let loan FAQs

Who might want to use a Buy to Let Mortgage?

  • Someone who has a good credit record
  • Someone who can afford to take the risk
  • Someone who owns their own home will find it easier to get a buy to let mortgage
  • Someone looking to invest in property, specifically houses or flats
  • Someone who has a relatively high salary
  • Someone who is under 70, in general, although older applicants can be assessed

Some of the differences between a buy to let mortgage and a normal mortgage are:

  • Interest rates on buy-to-let mortgages are usually higher
  • Buy to let mortgages have higher fees
  • The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%)
  • The majority of buy-to let mortgages are interest only mortgages
  • The FCA (Financial Conduct Authority) does not usually regulate buy-to-let mortgages

BTL Mortgages: How much can be borrowed?

  • The amount that can be borrowed is based on the rental income achievable
  • Generally the assessment of the affordability of the mortgage payment is based on the rental income the property generates versus the mortgage payment with an added 45% to cover shortfalls
  • The service charges associated with the rental will also be taken into account when assessing affordability

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