Buy to Let Mortgages

Buy to let Mortgages are mortgages used for residential investment property, so whenever a tenant rents a property, its likely that if their landlord has a mortgage on that property, its a buy to let.

Buy to let mortgages can be used for a wide range of property types and things like HMOs or Multi-Unit Freehold Blocks (more than 1 property sharing the same freehold title) all fall under buy to let. These types of mortgages are usually more specialist and require a broker to point you in the right direction.

A landlord can handle their buy to let portfolio themselves, but they wont have access to intermediary only lenders and products, which will mean that they likely aren't getting themselves the best deals around. A broker can also save you a lot of time as well as money by knowing which lenders criteria a certain situation fits with. We have a great blog post explaining this in more detail here.

Feel free to have a play around with our custom built mortgage calculator to assess how much a mortgage would cost you and calculate yield and profit per month etc. We recommend in the current climate using some rates between 3.5% and 7% for buy to let, depending how specialist the situation is.

Please submit an enquiry to speak to someone about buy to let mortgages and current rates and lender fees. We have provided an enquiry form for this. You can skip to our FAQ section here.

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Buy to Let FAQs

What properties come under buy to let mortgages?

Any residential properties which you look to fully let out. This could be anything from a family home to a HMO with lots of individual units.

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What is a HMO?

HMO stands for house of multiple occupancy, which means members from multiple families occupy the same property and potentially let a room or a unit each. The most common form of a HMO would be student lets, one property let to students from different families.

What is a MUFB?

MUFB stands for multi unit freehold block, which means there is one freehold title, so any borrowing against the property is registered against this one title, but there are multiple units on this one title. This could be something like one house split into 2 flats, but the flats do not have their own leaseholds, or it could be something like an entire apartment complex where there are lots of individual units. The difference between a MUFB and a HMO is that each unit in a MUFB is self contained and has its own kitchen and bathroom etc whereas a HMO may have shared facilities.

Doesn't buy to let mean I only pay the interest?

This is a very common misconception and this is where a buy to let mortgage gets confused with the term 'interest only'. Interest only is a form of repayment type for a mortgage, where you pay the 'interest only' each month, meaning your mortgage balance will remain the same for the term of your mortgage.

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Is it best to always go for the lowest rate?

This may seem like an obvious answer on the surface but its actually not always straightforward. It is best to discuss products with a broker who can calculate the true cost of each product taking in to account fees, interest payments and also your other needs and circumstances.

Lenders will often offer a range of products and these products will also come with a range of fee options and this is where a broker can help point you in the right direction.