Buy to Let Mortgage

Buying an investment property is a big commitment, but it can have significant rewards. Let us make the process as stress free as possible and help you find the best deal, even with adverse credit.

When searching for an investment property, one of the most crucial factors is securing the best deal on a buy-to-let mortgage that fits your unique circumstances and ensures a profitable outcome.

Whether you're dealing with a complex financial situation or navigating fluctuating market conditions, finding the right mortgage doesn’t have to be a daunting task. We believe that the process should be as smooth and stress-free as possible, no matter your circumstances. From our initial consultation to the completion of your property purchase, we are here to ensure you overcome any financial hurdles and get the best buy-to-let mortgage available. Understanding your mortgage is key to a successful property investment. We will make sure you fully grasp all the details of your mortgage agreement - whether it's related to the loan amount, interest rates, or repayment terms - so you can feel confident moving forward.

A buy-to-let mortgage is essential if you plan to purchase a property to rent out to tenants and require financing to do so. While buy-to-let mortgages are very similar to residential ones, there are critical differences, including how the amount you can borrow is calculated and stamp duty rates that apply. No matter the complexity of your financial background or the property you wish to invest in, we’re here to help. Your success in property investment starts with the right mortgage, and we’re dedicated to finding the perfect solution for you, even in challenging circumstances.

Mortgage Calculator

Not sure how much you could borrow? Use our helpful Mortgage Calculator to explore your options and monthly payments. If you have any questions, we’re always happy to talk to you.

Find out what you can afford

Find out what you can afford

About Us

We’ve been providing friendly mortgage advice to the Ashbourne area, Derbyshire and beyond for over 20 years. Take a look at why our customers keep returning to us again and again.

Find out more about our team

Find out more about our team

Stamp Duty Calculator

It can be complicated and confusing to work out how much stamp duty you’ll need to pay on a new property. Use our calculator to take away the hassle and work out your budget.

Find out what you might pay

Find out what you might pay

What Our
Customers Say

Truly professional service - Katie (and Christine) have always provided a high level of service and support to our family. They have been a pleasure to deal with. Thank you for all you have done.

Mike

Brilliant service. We contacted Katie Starbuck in Christine's office 6-7 weeks before our then current mortgage was due to expire, and knowing the increasing rates were coming up with the Bank of England, Katie gave us the utmost attention to our needs and arranged a good deal for us. Katie and Viv's attention to detail, knowledge of mortgages etc and speed in which they contacted us and replied to us was excellent, making for a smooth remortgage. Would recommend to anybody looking for a new or remortgage. Definitely 5 star!

Dave

Five stars for their responsiveness & professionalism.

Jessica

Key Facts

Securing a buy to let mortgage should never need to seem like a daunting process. We’ve set out some of the key features of a buy to let mortgage to put your mind at ease about finding one suited to you.

1. How much can I afford?

Determining how much you can borrow for a buy-to-let mortgage differs from a standard residential mortgage because it's not just based on your personal income. Lenders will also evaluate the potential rental income from the property you plan to purchase. Since each lender may use different criteria for calculating rental income, it's important to get an accurate assessment.

2. Your deposit

When applying for a buy-to-let mortgage, a larger deposit is typically required. While the minimum deposit is often around 20%, most buy-to-let mortgages will ask for at least 25%. Just like with standard mortgages, securing the most favourable rates and deals often means providing a larger deposit, which could be up to 40% of the property's value.

3. Stamp duty and tax

You are required to pay stamp duty on any property purchased in addition to your primary residence, with an extra 3% of the property value charged on top of the standard SDLT rates. Additionally, as a landlord, any rental income you earn will be subject to income tax. We recommend consulting with a tax advisor to fully understand your tax obligations before proceeding with your investment.

4. Finding the right property

When investing in property, it's crucial to choose one that will generate a profit. Selecting the right property in a prime location is key to success. Additionally, partnering with a reliable letting agent can greatly assist in securing and managing the best buy-to-let property; we collaborate with several reputable agents and are happy to recommend them if you need their expertise.

Buy to Let Mortgage Help!

Do you have some questions about your buy to let mortgage? You may find the answer here! If you do have any further questions, please contact us.

  • 1. What is a buy to let mortgage?

    A buy to let mortgage is a special type of mortgage designed specifically for a landlord looking to rent out their property to tenants.

  • 2. Do I need a buy to let mortgage to rent out a property?

    Unless you are lucky enough to be able to purchase a second property with cash and no mortgage, you will need a buy to let mortgage to purchase a property that you wish to then rent out. For more information on the buy to let process and your responsibilities as a landlord, call us today.

  • 3. What is the difference between a buy to let mortgage and a standard mortgage?

    A buy to let mortgage is specifically designed for landlords who are looking to rent out a property to tenants. Most buy to let mortgages are interest only, and they will not be based solely on your personal income – they will also take into consideration how much rent the particular property could generate.

    You will also typically need a slightly higher deposit for a buy to let mortgage, and stamp duty charges are also higher. For more information, contact one of our experienced advisors.

  • 4. How do I get a buy to let mortgage?

    Using a buy to let mortgage broker is the easiest way to find a fantastic buy to let mortgage deal that is suited to you and your circumstances.

  • 5. How do I choose a buy to let property?

    Finding the right buy to let property is a case of choosing the right property in the right area that will suit both your budget and circumstances.

    You should always consider the type of tenant you are looking for, and whether the property or area will be suited to this. You should also consider the demand of the area or property type, and whether this demand could increase or decrease. A letting agent can provide assistance in finding a buy to let property. A buy to let mortgage will be secured against your property, but some types of buy to let mortgages are not regulated by the financial conduct authority.

  • 6. How much could I borrow on a buy to let mortgage?

    How much you can borrow on a buy to let mortgage is not solely dependent on your income. The lender will also factor in the potential rental income for the property, using a rental income calculation. This calculation can vary from lender to lender, so please contact one of our expert advisors for an estimate on how much you can borrow.

  • 7. How much deposit do I need?

    You will need a higher deposit for a buy to let mortgage. The minimum is 20%, but 25% is most common. In order to get the best rates, you will need an even higher deposit, anywhere up to around 40% of the property value.

  • 8. Do I need a tenancy agreement?

    If you are a private landlord looking to rent a property to a tenant then you will need an Assured Shorthold Tenancy (AST) agreement. When applying for a buy to let mortgage, most mortgage lenders will insist that you have one of these, and may even ask to see a copy.

  • 9. Are there property types that are difficult to secure a buy to let mortgage on?

    Certain properties might be more difficult to secure a buy to let mortgage on due to their age, type or location. For example, there are restrictions on the number of mortgages available for ex-local authority or high rise flats. Your lender may also have restrictions on flats above commercial premises.

    If you are interested in purchasing a buy to let property that you feel could be difficult to secure a mortgage against, contact one of our expert advisors and they will be able to help you.

  • 10. Can I buy a buy to let property as a first-time buyer?

    Yes, however, your choice of mortgages may be limited as most lenders will require you to have owned your own residential property for at least a certain period of time (usually 6 months) before they will offer you a buy to let mortgage.

    One of our advisors will easily be able to help you find any available mortgage deals if you are a first time buyer looking for a buy to let property.

  • 11. What is a House of Multiple Occupation (HMO)?

    A House of Multiple Occupation (HMO) is a property which will hold at least 3 tenants not of the same family but forming one household, sharing toilet, bathroom and kitchen facilities. Depending on the property and its location, you may require an HMO license. The local authority for the property can provide you with further information about this license and whether your property might require one, or already has one.

  • 12. Do you pay stamp duty on a buy to let property?

    Yes. You will always be required to pay stamp duty on an additional property. For the first £125,000 of the property value, you will pay stamp duty at 3%, and this will rise in increments to 15% at anything over £1.5 million. Our stamp duty calculator can give you an accurate figure for the stamp duty you might pay on your new home.

  • 13. Do you pay Capital Gains Tax on buy to let property?

    If you sell the property for more than you paid for it, after deducting costs such as stamp duty, estate agent or legal fees, then you will be liable for capital gains tax, since you are ‘gaining capital’.

    We would advise that you seek the advice of a specialist tax advisor who can explain all of the tax implications when purchasing an investment property. We work closely with a number of skilled tax advisors who we would be happy to recommend to you, should you require their services.

  • 14. Do you pay tax on buy to let property income?

    As a landlord, any profit you make from renting out a property will be liable for income tax. There are ways to reduce this tax bill by offsetting certain costs, including property repairs and maintenance, against the rental income.

    We would advise that you seek the advice of a specialist tax advisor who can explain all of the tax implications when purchasing an investment property. We work closely with a number of skilled tax advisors who we would be happy to recommend to you, should you require their services.

  • 15. Is using a limited company better for tax?

    Due to recent tax changes affecting those who personally own a buy to let property, many landlords are now choosing to purchase investment properties using a limited company, specifically set up for this purpose. Buy to let mortgage rates are often higher for limited companies, but there are tax benefits to this route which, depending on your circumstances, can save you money.

    We would advise that you seek the advice of a specialist tax advisor who can explain all of the tax implications when purchasing an investment property. We work closely with a number of skilled tax advisors who we would be happy to recommend to you, should you require their services.

  • 16. Do you pay inheritance tax on a buy to let property?

    Yes. Inheritance tax is still payable on a buy to let property, but the amount you pay will depend on your circumstances.

    We would advise that you seek the advice of a specialist tax advisor who can explain all of the tax implications when purchasing an investment property. We work closely with a number of skilled tax advisors who we would be happy to recommend to you, should you require their services.

How can we help?

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