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Navigating the buy-to-let mortgage market
Whether you're an experienced investor or just starting out in the rental market, Wesleyan Financial Services can help you find a great buy-to-let mortgage.
Although buy-to-let mortgages are similar to residential mortgages, there are some key differences. You'll typically need a larger deposit and interest rates can vary - which will ultimately impact how much profit you make. That's why it's important to get the right deal for your circumstances, with help from a Specialist Mortgage Adviser.
- Get expert advice at every step of the process
- Take advantage of professional mortgages designed for you
- Access deals from a range of specialist lenders
- Let us find the right deal for you, saving you time and effort
Always remember your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments.
Please note that most buy-to-let mortgages are not regulated by the Financial Conduct Authority (FCA).
Wesleyan Financial Services provides broker and advice services, for which a fee may apply. Product fees may be payable to the lender.
Things to consider for a buy-to-let mortgage
How much you can borrow
The maximum amount you can borrow on your buy-to-let loan is largely dependent on the amount of income you'll be receiving. Usually, lenders need your rental income to be 25-30% higher than your mortgage payments.
It's also important to be aware that you'll typically need a higher deposit for a buy-to-let mortgage. The minimum deposit is usually 25% of the property purchase price, but this can vary between 20% and 40%.
Planning for the future
As a landlord, there will almost certainly be times when your property is unoccupied. During these 'void periods' you won't be receiving rent, which means you'll need to consider how you're going to meet your mortgage payments.
This is where unoccupied home insurance can help, protecting you against a number of unexpected circumstances – from theft and vandalism to natural disasters such as fire, floods and storms.
It’s also wise to top up your savings account when you do have rent coming in. Savings can provide a financial cushion for any unexpected repair bills that arise – for example, a broken boiler or blocked drain.
Buy-to-let mortgage types
The type of buy-to-let mortgage you choose will depend on your personal circumstances and preferences.
For example, a fixed-rate mortgage means your monthly payments and interest rate will stay the same for a set period of time. With a variable rate mortgage, your payments could go up or down as interest rates change.
Our experts can help you choose from a range of mortgage types, including capital repayment mortgages and interest-only mortgages.
The maximum amount you can borrow on your buy-to-let loan is largely dependent on the amount of income you'll be receiving. Usually, lenders need your rental income to be 25-30% higher than your mortgage payments.
It's also important to be aware that you'll typically need a higher deposit for a buy-to-let mortgage. The minimum deposit is usually 25% of the property purchase price, but this can vary between 20% and 40%.
As a landlord, there will almost certainly be times when your property is unoccupied. During these 'void periods' you won't be receiving rent, which means you'll need to consider how you're going to meet your mortgage payments.
This is where unoccupied home insurance can help, protecting you against a number of unexpected circumstances – from theft and vandalism to natural disasters such as fire, floods and storms.
It’s also wise to top up your savings account when you do have rent coming in. Savings can provide a financial cushion for any unexpected repair bills that arise – for example, a broken boiler or blocked drain.
The type of buy-to-let mortgage you choose will depend on your personal circumstances and preferences.
For example, a fixed-rate mortgage means your monthly payments and interest rate will stay the same for a set period of time. With a variable rate mortgage, your payments could go up or down as interest rates change.
Our experts can help you choose from a range of mortgage types, including capital repayment mortgages and interest-only mortgages.
Buy-to-let mortgages explained
Still wondering whether letting a property is the right option for you? Read our comprehensive buy-to-let mortgage guide, for everything you need to know all in one place.
Learn more about:
- How buy-to-let mortgages work
- Who can get a buy-to-let mortgage
- Buy-to-let mortgage types
Why choose us for your buy-to-let mortgage?
Advice when you need it
What percentage deposit do you need for a buy-to-let mortgage? Should you already own property? We can provide the answers to all your questions.
Finding the right deal for you
Did you know that doctors, teachers and other professionals can benefit from a professional mortgage? Access deals from a range of specialist lenders today.
Support at every step of the way
Once your buy-to-let mortgage is in place, we can help you protect your property with landlord insurance from our panel of leading providers.
Frequently asked questions
Most buy-to-let mortgages are paid on an interest-only basis. This means that landlords only pay back interest, making monthly payments cheaper. When the loan matures (typically after 25 years), the capital will need to be repaid – usually by selling the property.
It's important to remember that buy-to-let mortgages are for those buying property as an investment, and a lender will need to ensure that the amount of monthly rent can cover both mortgage repayments and any other costs that may be incurred.
The application process for a buy-to-let mortgage is similar to that of a residential mortgage, but there are some key differences. For example, you’ll need a larger deposit for a buy-to-let loan, and interest rates are usually higher. This is due to lenders typically viewing tenants as higher risks than owner-occupiers.
You’ll also need to be 21 years or older to apply for this type of mortgage, and if you’re considering a joint application, other applicants will need to be 18 years or older.
Yes – if you are moving and wish to let your existing property, switching from a residential mortgage to a buy-to-let mortgage is quite common. If you wish to do so, you will need consent from your lender. If your current lender refuses, then you can look to remortgage with another lender.
If you have a fixed term mortgage with early repayment charges, switching could result in these being applied.
You might be interested in…
First-time landlord guide
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What insurance do I need as a landlord?
Letting a property can be an effective income boost, but it also comes with a lot of responsibilities and some risks. Get clued up on the types of cover you might need.
Insurance for landlords
Protect your property portfolio with landlord insurance from our handpicked panel of leading providers. We can find you a policy without you having to go round the houses.
How to insure an unoccupied home
What is unoccupied house insurance and how does it differ from standard home insurance? Find out in our guide to insuring an empty property.