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Compare Buy to Let Mortgages

Which4U compares the top UK lenders to offer a range of buy to let mortgages, ideal for customers buying new property, switching providers, moving to better deals or to increase their borrowing.

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Your home may be repossessed if you do not keep up repayments on your mortgage. The rates and products displayed within these tables are updated on a regular basis however due to the dynamic nature of the market some product details and rates may be out of date. We therefore do not take any responsibility for the accuracy of the information supplied within the table although we will always make our best endeavour to ensure that the information provided is as accurate as possible. You should always check rates and terms with the product provider. The telephone-based mortgage advice service is provided by TurnKey Mortgages Limited. Registered office: St Crispins House, Duke Street, Norwich NR3 1PD. TurnKey Mortgages Limited are authorised and regulated by the Financial Conduct Authority. Their FCA number is 537424.

Buy-to-Let Mortgages / Landlord Mortgages

 

Buy-to-let mortgages are designed for landlords who wish to buy property to rent out rather than to live in themselves. Traditionally, buy-to-let mortgages are more expensive than other mortgage types, but they can help new landlords to become property investors and potentially reap rewards over time.

 

Conditions of buy-to-let mortgages:

  • Higher Costs

Buy-to-let mortgages are usually more expensive than standard tracker or fixed-rate mortgages, and prospective landlords will usually need a deposit of at least 25% of the value of the property. How much can you borrow? Try our calculator.

  • Property Owners

Lenders will sometimes expect buy-to-let mortgage applicants to own a property already, either outright or with an existing mortgage.

  • Borrowing Linked to Rental Income

The amount a new landlord can borrow is likely to be linked to the value of the rent he/she plans to charge. Lenders prefer a margin of at least a quarter between the rent level and the mortgage payment. How much will you need to charge in rent? Try our calculator.

 

How do you determine the best buy-to-let mortgage?

The best buy-to-let mortgage deal will depend on your individual circumstances. The value of the property will have to be weighted against realistic rental income prospects for the area and the affordability of the mortgage.

 

The rate for your buy-to-let mortgage will depend on the property value, your deposit, and potential rental income.

 

Landlord mortgages are also available as fixed-rate and tracker mortgages, which have their own distinct advantages and disadvantages. Check out the fixed-rate mortgage and tracker mortgage pages for more information.

 

Is a buy-to-let mortgage the right option?

There are complications to becoming a private landlord. Your income is not guaranteed, while some of your rental income will be lost to property maintenance and letting agents’ fees.

 

Landlord insurance is likely to be more costly, because you are not a permanent resident at that property, while legal insurance is an extra premium if you need cover for the legal costs of eviction.

 

But the market conditions are currently very favourable for buy-to-let property. The Funding for Lending Scheme has made borrowing cheaper, while the large numbers still saving for deposits ensure there is strong demand for private rental property.

 

Compare your best buy-to-let mortgage options above.

 

 

As always, we recommend that you seek professional advice if you are unsure which type of mortgage is right for you. All of the information provided above is for use as an overview only and should not be the basis for your mortgage decision.

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