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.
Buy-to-let mortgage deals that work for you
If you’re considering buying a property to rent out, Wesleyan Financial Services can help find the right buy-to-let mortgage for you. Our Specialist Mortgage Advisers know what it takes to make your property purchase a success, and will search the market to find the right deal for you.
- Get fee-free* advice and support at every step of the process
- Access rates and deals from a range of specialist lenders
- Take advantage of professional mortgages designed for you
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. Wesleyan Financial Services is paid a fee by the lender upon completion of the loan. Product fees may be payable to the lender.
Specialist buy-to-let mortgage advice
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 best deal you can, with help from a Specialist Mortgage Adviser.
Whether you're an experienced investor or just starting out in the rental market, we can help you find a great buy-to-let mortgage. Our experts can assist with a range of circumstances - from complex income to non-standard property and holiday lets.
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 why it's a good idea to top up your savings account when you do have rent coming in. Savings can also provide a financial cushion for any unexpected repair bills that arise - for example, a broken boiler or blocked drain.
Choosing a buy-to-let mortgage
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
Why choose us for your buy-to-let mortgage?
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
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What is a buy-to-let mortgage?Buy-to-let mortgages are for those who buy property to rent it out. Although buy-to-let mortgages have similar rules to standard residential mortgages, there are some differences. For example, you’ll usually need a larger deposit, and repayment is typically on an interest-only basis.
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How do buy-to-let mortgages work?
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.
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Who can get a buy-to-let mortgage?
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.
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Are buy-to-let mortgages more expensive?Buy-to-let mortgages are typically more expensive than residential mortgages. This is because lenders view tenants as higher risk than owner-occupiers – for example, payments may be defaulted if the property isn’t the owner’s primary residence. Tenants may not care for the property in the same way, and the home may be left empty for periods at a time.
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How much deposit do I need for a buy-to-let mortgage?With buy-to-let mortgages, the minimum deposit you will usually need is 25% of the property’s value (although this can vary between 20-40%). This is different to standard residential mortgages, where it is often possible to put down a deposit of as little as 5% of the purchase price.
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Can I change my mortgage to buy-to-let?
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.
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