Buy-to-Let Mortgages

Looking to buy a property to rent out? Whether you’re a first-time landlord or you already have a property portfolio, we can help you find a suitable buy-to-let mortgage.

Helping you buy a property to let

Buy-to-let advice for landlords

When it comes to getting a mortgage for a rental property, the fees and interest rates are usually higher than standard mortgages. Most buy-to-let mortgages are interest only, so you just pay the interest each month. The mortgage is then repaid in full at the end of the mortgage term. Our referral partners are buy-to-let experts, and we regularly advise landlords on suitable mortgage offers. We will help you navigate through all the regulation.

Applying for a buy-to-let mortgage

At MME, we have a proven track record in obtaining competitive terms for complex situations, such as HMOs and lending to limited companies. We will find you the right buy-to-let mortgage to help you expand your property portfolio.

Our buy-to-let mortgage experts will:

  • Look at your eligibility for a buy-to-let mortgage and research available offers.
  • Learn about your financial situation, the property value, and the expected rental income, so we can make suitable recommendations.
  • Explain the buy-to-let mortgage criteria, including rates, costs and terms.
  • Help you apply for a mortgage Agreement in Principle (AIP). We will advise you until your mortgage offer has been accepted and beyond.
Useful Information

How does a Buy-to-Let mortgage work?

If you are looking for a buy-to-let mortgage, then you will need to factor in extra considerations. As renting a property is a financial venture, finding the right mortgage offer is crucial if you want to generate profit-making revenue. We will ask you about your aims and your business strategy to ensure you have the right approach as a landlord.

  • To apply for a buy-to-let mortgage, you need to be between 21 and 80 years old.
  • The average deposit for a buy-to-let mortgage is between 20 – 40% and the minimum property value needs to be £50,000. You are usually only allowed up to 10 buy-to-let mortgaged properties with a single lender.
  • Despite various regulatory and tax changes to hit the sector, property is still an attractive investment. But as it’s an ever-changing landscape, it’s essential for landlords to stay up to date with the right advice.

The Process for obtaining a
Buy-to-Let Mortgage

Learn what’s needed when you are looking to become a landlord property. Whether you have one property or a portfolio, it’s important to find a buy-to-let mortgage that suits your needs. Let us walk you through the process step by step.

Stage 1

What information is needed for a buy-to-let mortgage application?

Our team will need the following information before we can make your application:
  • Your age, residence, income, and other financial information.
  • Your rental income estimation based on what you expect to charge in rent to tenants each month.
  • Whether you are a first-time buyer and/or a first-time landlord. If you already have rental properties, we will need to know the exact number in your portfolio.
Stage 2

What do you need to consider with a buy-to-let mortgage?

Our team will explain the varying factors to consider with a buy-to-let mortgage:
  • Mortgages for Buy-to-Let properties tend to require larger deposits, typically 25% of the purchase price. Lenders may require higher deposits depending on your financial profile, or a property of a more complex nature, ie. a House of Multiple occupancy or Multi-Unit Freehold Block.
  • Criteria can differ vastly from lender to lender; some might not lend to those that are buying and becoming a landlord for the first time and others do not lend to landlords with larger portfolios of properties. Speaking to an expert in this area is vital to understand your options.
Stage 3

What do you need to know about becoming a landlord?

There are various factors to consider when you are buying a rental property:
  • The mortgage lender will use your rental income estimate to calculate what you can afford in monthly interest payments. Typically, they will expect your rental income to be between 125% and 145% of the monthly interest payments.
  • If you already own a property, there will be Additional Stamp Duty to pay on the property you are looking to buy and rent out.
  • You will need to pay income tax on your rental income. If you choose to sell the property at a later stage, then you might have to pay Capital Gains Tax.

Customers love our ‘whatever it takes’ attitude!

MME Insights