Buy to Let Mortgages

Buy to let mortgages for property owners & investors

UK Buy To Let Mortgages

Borrow from £150,000 to enter the rental property market or add to your investment or financial portfolio. A buy to let mortgage is an opportunity, available with mortgage terms from 3 to 30 years for ultimate flexibility.

Rapid Buy To Let Mortgage Broker

Rapid Bridging are a buy to let mortgage broker. We help landlords find the most competitive UK buy to let mortgages to capitalise on property opportunities, wherever you are. 

The rental marketing in the UK is becoming increasingly competitive, with 2.66 million buy to let landlords in the UK tody. Both first-time investors and portfolio landlords benefit from Rapid’s whole of market access to dozens of high street, mainstream, and institutional lenders.

Give me the facts

ELEGIBILTY

Individual, Corporate, Overseas and Trust borrowers looking to purchase/refinance property in England, Wales, & Scotland

Minimum loan Size

£150,000

Maximum Loan Size

£ Unlimited

Up to 85 % loan to value.

Minimum Age

21

MAXIMUM AGE

No upper limit – Subject to underwriter review.

AMOUNT

£150,000- £ Unlimited

DURATION

From 3 Years to 30 Years

REPAYMENT

Capital Repayment, Interest Only or a Combination

INTEREST RATE

From 1.19 % per annum

SECURITY REQUIRED

First or second charge registered against a property.

TYPE OF SECURITY

Residential, Multi-Unit, HMO, AirBnBs & Student Let.

Interest rate

From 1.19 % per annum

SPEED OF DECISION

Quote within 10 minutes of enquiry, credit backed decision the same day

TIMING OF CASH

Can be funded as quickly as working 15 working days but normally in as little of 10 working days

APPLICATION PROCESS

Online enquiry, call, postal applications and or fact to face meeting

Need more information about buy to let mortgages UK?

Over the past 20 years, many now consider getting into the rental property market as presenting them with a more worthwhile investment opportunity than saving for their retirement with a traditional pension.

Most residential mortgages (the mortgages you apply for when you want to live in the property you’re purchase) are “capital repayment” mortgages. 

The monthly payments you make to your lender cover the capital (the money you borrowed for the property) and the interest (the charge a lender levies for advancing you the funds).

Although some landlords do apply for a buy-to-let repayment mortgage, most landlords instead choose an interest-only buy to let mortgage instead. With this type of mortgage loan, your mortgage payments only cover the interest on the capital – you never actually repay the capital yourself.

In these cases, you can either save money to repay the capital in full at the end of the mortgage term or sell the property prior to the end of the mortgage term. Most landlords choose the latter – the average time a landlord owns the rental properties in their portfolios is 11.5 years. 

Although house prices historically have gone up over time, often faster than the rate of inflation, borrowers may be vulnerable to making a significant financial loss if they attempt to sell a property whose value has fallen since purchase. 

This makes carefully selecting the properties you purchase to let out of significant financial importance. The way you are able to repay a buy to let mortgage varies: 

  • The difference between the expected rental income you receive from tenants and the monthly repayments you make on the mortgage (which is subject to income tax) 
  • Capital appreciation – the rise in the value of property over time which, when you sell the property, will result in further profit (on which you’ll have to pay capital gains tax).

As a buy to let mortgage broker, we know that lenders strongly prefer borrowers to take out a specified buy to let mortgage and not a standard residential mortgage. In most cases, renting a property out to others (subject to exceptions) is against the terms and conditions you agreed to with your residential mortgage provider.

 

How much rental income do you need to secure buy to let mortgages in the UK?

Another reason landlords choose to repay their mortgage on an interest only basis is because monthly interest payments are a lot less expensive than on repayment mortgages.

On a repayment mortgage, the monthly payment at 4% interest on a £150,000 mortgage would be £791. On an interest only mortgage, the monthly repayment would be £500.

Most buy-to-let mortgage lenders require landlords to charge 125% of their monthly repayment. With an interest-only mortgage, this would mean finding a minimum rental of £625 however, with a repayment mortgage, this would be £989.

Renting is a competitive market and you’ll secure the greatest chance of finding a tenant by offering a lower monthly rent.  Interest-only mortgages allow landlords greater flexibility over what they charge tenants because of their lower costs.

Best used for

Asset Purchase & / Or Refinance

Portfolio restructuring

Extending short leases

Business Funding Expansion

Refurbishment

Debt Restructuring

Power of attorney

HMRC

Who Can Use Buy To Let Mortgages?

New investors as well as experienced landlords. Typically, buy to let mortgages are slightly more expensive for new investors than for experienced landlords. This is simply because you are less of a known entity, and therefore potentially a greater risk to lenders. 

However, we are experienced buy to let mortgage brokers. We have cultivated a panel of lenders, willing to engage and even target the first time or new landlord market, meaning that, in most cases, we are able to find inexperienced landlords a very competitive deal on the most favourable terms.

 

How much can I borrow with a buy-to-let mortgage?

The expected rental income you can charge on a buy to let property is the main factor determining how much you can actually borrow as well as your deposit.

We are experienced buy to let mortgage brokers, we know that the minimum size of applications we advance is for £150,000 properties, meaning that, for a property worth £200,000 where you had a deposit of 25% (£50,000), you’d need to purchase a property whose minimum expected monthly rental was around £900.

For more information on the potential value of the buy to let mortgages UK we can arrange for you based on rental income, please call us on 0208 150 7528 or email us at info@rapidbridging.com.

 

What are interest rates like on buy to let mortgages?

The interest rates (sometimes called mortgage rates) you’re charged on buy to let residential mortgages are more expensive than on residential mortgages.

That’s because lenders think there is a greater risk in someone missing a mortgage payment on a property they don’t personally live in and, as a result, they charge you more for this risk.

As with a standard owner-occupier mortgage though, you can choose a fixed rate mortgage or a tracker mortgage with a variable rate.

With a fixed rate mortgage, your repayments stay the same for a period of between two and five years meaning that you know each month how much you’ll be paying. 

However, you will almost certainly be charged an early redemption penalty if you attempt to move to a new mortgage provider in that time or you successfully sell your property.

With a tracker mortgage, you pay a variable interest rate which may go up or down depending on the movement of the Bank of England’s base rate. If your mortgage rate falls, you’ll make more from your rental but, if it rises, your profitability will decrease.

Rapid Bridging’s buy to let mortgage brokers will be able to advise on the best route forwards for you.

 

How much deposit do I need for a buy to let mortgage?

Just as a mortgage rate on a buy to let loan is higher, so is the deposit you need to find.

Most lenders require a 25% deposit although Rapid’s panel of lenders does include mortgage providers requiring deposits from as little as 15%. Depending on market conditions and the property you want to purchase, you may need to find a 40% deposit.

For more information on mortgage rates and how much deposit you might need, please call us on 0208 150 7528 or email us at info@rapidbridging.com.

 

How long does it take to organise a buy to let mortgage in the UK?

We are experienced buy to let mortgage brokers; our average turnaround time for buy to let mortgages is 15 working days although, when time is of the essence, we can often fund you in as little as 10 working days.

 

I already have a buy to let mortgage UK – can I swap to a new one?

If you already have a current mortgage on one or more of your buy to let properties and you wish to change to a new one with a lower interest rate, please get in touch with details of your existing lender and the interest rate you’re currently being charged.

 

Can I use a buy to let mortgage to buy a property at auction?

If you wish to purchase property at auction, you will need auction finance. Please click for more information on the auction finance service we offer.

Once you’ve purchased your auction property, we can then begin processing your mortgage application. When successful, you use the proceeds from the mortgage to repay your auction finance facility.

 

Looking for a House in Multiple Occupancy (HMO) mortgage?

If you intend to purchase a property which you’ll let out to three or more unrelated tenants where the bathroom and/or kitchen facilities may be shared between those tenants, you may need an HMO mortgage.

Please click for more information on our HMO mortgages.

 

Why Choose Rapid Bridging As Your Buy To Let Mortgage Broker?

For over 10 years, Rapid has connected new and experienced landlords around the UK with our panel of high street, mainstream, and institutional lenders.

We aim to find the right mortgage for each client minimising both your up-front and ongoing costs so that you can make more from your property portfolio.

For a personalised buy to let mortgage quote, please call us on 0208 150 7528 or email us at info@rapidbridging.com.

 

Mortgages on buy to let property FAQ

 

How much does a buy to let property cost?

The average buy​-to-let property cost in the UK is £183,278 although the actual price paid by landlords varies on region and property type.

The average cost of UK property as a whole is around 40% more expensive. As a rule, lower priced properties produce higher yields/profits than higher priced properties as well as required less up-front capital because of lower deposit requirements.

 

Do I have to give back the keys at the end of my buy to let mortgage?

It depends. If you take out a mortgage where you repay the capital as well as the interest, the property will belong to you at the end of the term as long as you keep up repayments on it.

If you take out an interest-only mortgage, you will need to pay your lender the value of the property at the time of purchase. If you don’t do this, the property will be repossessed.

Most landlords do not hold on to a buy to let property until the end of their mortgage term choosing instead to sell with the aim of profiting from any increase in the value of the property.

 

Will my credit score affect my chances of getting a buy to let mortgage?

We can and regularly do arrange buy to let mortgages for clients who have a poor credit history.

However, because a mortgage provider will view lending to you as riskier, the process will take longer and the overall cost (including monthly interest payments) will be higher than if you have a good credit history.

The more missed payments, defaults, and CCJ’s (County Court Judgements) on your credit score, the more difficult it will be.

Please note though that Rapid’s panel of lenders includes lenders willing to work with applications across a wide range of credit scores.

If you’re concerned that your credit score may stop you from obtaining a buy to let mortgage, please speak to a mortgage adviser on 0208 150 7528 or email us at info@rapidbridging.com.

 

Should I convert my existing mortgage to a buy to let mortgage if I’m an “accidental landlord”?

If you still have a mortgage on a property you used to live in and you want to let it out, you should apply to your lender for “Consent to Let”.

This is because renting out without such a consent may infringe against your mortgage provider’s terms and conditions of lending.

Most standard mortgage lenders will be happy to rent out your property with a consent to let for a number of years however some may eventually require you to swap to a buy to let mortgage.

 

Do I need a buy to let mortgage if I rent a room out in my home?

No. Most residential mortgages allow the renting of rooms as long as you (and your family) still occupy the property but you should certainly inform your lender of your intentions beforehand.

 

If I rent out a property for holiday lets or AirBnB, will I need a buy to let mortgage?

Yes. If you have a property which is essentially now a holiday let and you don’t live in the premises, mortgage lenders will consider your property as a rental property and you’ll need to take out an appropriate mortgage.

 

Do I need a buy to let mortgage if I rent out to friends and family?

If you rent to close family members, you may not need a buy to let mortgage but you should ask your current mortgage provider beforehand. If you rent out to friends, you’ll almost certainly need a buy to let mortgage.

 

Can I get a buy to let mortgage when you are retired?

Many of the buy to let mortgage providers on our panel will lend to applicants past the state retirement age of 67 subject to minimum income requirements (including dividends and pension payments).

 

Should I use a limited company for buy-to-let?

Following the introduction of the mortgage interest relief restriction in April 2017, many landlords now choose to purchase new property through a special purpose vehicle like a limited company.

You should seek advice from your accountant or solicitor before purchasing new property through a limited company or transferring property you currently own personally into a limited company.

 

Are mortgages for buy-to-let limited companies available?

Rapid’s panel of lenders features many buy to let mortgage providers which provide funding to limited companies.

 

What are the costs associated with a BTL mortgage?

You should expect to pay these fees as part of the overall cost of your buy to let residential mortgage application:

  • legal fees – borrowers must pay the legal fees for both sides, including applying for a charge with the Land Registry, disbursements, and conveyancing fees
  • arrangement fee – sometimes called a booking fee, this is a charge for arranging the loan levied to you by the lender (similar to the type of charge you may have paid on the mortgage on where you live)
  • valuation fee – sometimes known as an application fee, you need to pay for a valuer to produce a report on the open market value price and the condition of the property you wish to purchase
  • broker fee – many brokers charge a small fee to the borrower for the work they carry out in finding a lender and correctly packaging your deal for lenders. Rapid Bridging charges no broker fees to clients expect on very complex cases.

 

What other costs are associated with being a residential property landlord?

As a buy to let landlord, you will also be liable for the following fees and charges:

letting agency fees – you may choose to work with a letting agent who will then be responsible for finding & managing tenants as well as collecting rents

  • buildings insurance
  • landlord insurance
  • mortgage repayments
  • capital gains tax – payable if, at the time of sale, you’ve made profit from selling the property at higher value than you bought it at minus all capital and related costs incurred during your time of ownership.

 

Are Buy To Let Mortgages UK regulated by the Financial Conduct Authority (FCA)?

Except for buy to let mortgages where your tenant is a closed family member, most buy to let mortgages are not regulated by the FCA although providing advice on and arranging buy to let mortgages are regulated.

 

Can first time buyers apply for buy to let mortgages?

Yes – there are hundreds of buy to let mortgages available to you if you’re a first time buyer. Please get in touch with us for more information.

Secure the most competitive buy to let mortgage deals with Rapid Bridging & Commercial Finance

To secure a buy to let mortgage on the best terms and with the lowest interest rates, please click to use our bridging finance calculator or call us on 0208 150 7528 or email us at info@rapidbridging.com.

Rapid Bridging & Commercial Finance is entered on the Financial Services Register and is authorised and regulated by the Financial Conduct Authority. Our Information Commissioners Office registration is ZA115985.

Key features

Fixed and Variable Rates

Fixed and Variable Rates

Specialist Portfolio Finance Products

Specialist Portfolio Finance Products

Complex structures

Complex structures

No Minimum Income

No Minimum Income

Consumer Buy to Let

Consumer Buy to Let

Previous adverse considered

Previous adverse considered

Borrow up to 85 % loan to value

Borrow up to 85 % loan to value

Repayment, Interest only or a combination

Repayment, Interest only or a combination

2nd Charges’ available

2nd Charges’ available

No upper age limits

No upper age limits

First Time Landlord

First Time Landlord

Rapid Bridging money hand icon

Contact us for more information

0208 150 7528
info@rapidbridging.com