Buy-to-Let Mortgages
Thinking about buying a rental property or looking for a better deal on an existing buy-to-let mortgage?
At Burrows Financial Services, we help first-time and experienced landlords explore their mortgage options, understand lender requirements and find a mortgage that suits their plans.
How do buy-to-let mortgages work?
Buy-to-let mortgages are designed for properties you intend to rent out rather than live in. They work a little differently from residential mortgages, particularly when it comes to deposits and how lenders assess affordability.
Lenders will usually consider the rental income the property could generate, alongside your deposit and personal circumstances. Requirements vary between lenders, which is why it's worth exploring your options before committing to a property.
Deposits
How much you might need
Rental Income
How lenders assess it
Ownership options
Individual or limited company
How much deposit do you need for a buy-to-let mortgage?
Most buy-to-let mortgage lenders require a larger deposit than residential mortgage lenders. While some may consider deposits from 20%, many typically require around 25%.
The exact amount depends on the lender, property type and your circumstances. A larger deposit may also give you access to a wider range of mortgage options.
Remember
This is just an example. Deposit requirements vary between lenders and some may be able to consider lower deposits depending on your circumstances. We'll talk through the options available for you.
How does rental income affect your buy-to-let mortgage?
When applying for a buy-to-let mortgage, lenders will usually look at how much rent the property is expected to generate, rather than relying solely on your personal income.
They use a rental income assessment to check whether the expected rent meets their requirements. The amount needed can vary depending on the lender, mortgage interest rate, your tax position and the type of mortgage you're applying for.
Some lenders will also consider your personal income and existing financial commitments.
Buying your first rental property or already a landlord?
At Burrows Financial Services, we help both new and experienced landlords find suitable buy-to-let mortgages.
You might be purchasing your first investment property, looking to expand your portfolio or reviewing the mortgage on a property you already rent out.
Buying a rental property
Explore mortgage options for your first buy-to-let property or an additional investment.
Remortgaging a rental property
Review your existing mortgage, explore new deals or consider releasing equity from a rental property.
