Buy To Let Remortgage rates for UK Landlords

A buy to let mortgage is lending secured on property designed specifically for use with residential premises to be let to tenants.

The typical deposit requirement for a buy to let mortgages 25%. Lower deposits are sometimes available.

Yes. Most lenders will accept first-time landlords, some do not accept a first-time landlord who does not own a residential property.

The key driver for total borrowing on a buy to let property is monthly expected rental income from that property. Some buy to let lenders will take your earned income into account as well, most do not.

This varies across the market but the lender will typically expect the rental to cover hundred and 125% 140% of the mortgage payment at a nominal rate which is slightly higher than the charge rate.

A good rule of thumb in the current market is that the thousand pounds of rental income may support lending of £120,000.

Most lenders do require a minimum personal income a few do not. Where a minimum personal income is set it is typically £25,000.

Yes, this is becoming more common in the market. Most lenders require the limited company to only be operating in the real estate market (example SIC 68209).
Lenders are not keen where the limited company is also trading in another business.

Buy to let mortgages come with fixed rate options, tracker rate options, and discounted variable options. This typically have 2 to 5 year terms, although shorter and longer terms are occasionally available.

Yes, it is possible to remortgage a buy to let property to secure a better rate, raise funds, or add or remove a borrower.

Most buy to let lenders offer product transfers (rate switches) for existing borrowers.

Expect to incur valuation fees, legal fees, broker fees, and product fees.

Unlike residential mortgages, buy to let mortgages are more likely to come with larger percentage based product fees (perhaps 1%/2%/3%/5%) to secure the lowest interest rates.

No, Buy to let mortgages are not designed for properties the borrower or borrowers family member intends to occupy.

If you specifically need to purchase a property for a family member to occupy, that is a specialist product called a regulated buy to let mortgage.

Yes, this is possible, sometimes your existing residential lender will give you consent to let the property (typically for a limited period).

Or you can remortgage the property with a consumer buy to let product.

Yes you can purchase a property to let either in your own name or through a limited company.
There may be tax advantages in purchasing with a limited company you should discuss these with your accountant.

Tax rules on mortgage interest have changed considerably in recent years. Most landlords can offset some of the cost of their interest against their tax bill. The situation is different for limited companies. Consult your accountant for full advice in this matter.

Yes, it is possible to own numerous mortgaged buy to let properties. However, the more you are on the fewer lenders will consider you for a buy to let mortgage.
Once you own or part own your fourth mortgaged buy to let property you are considered a ‘Portfolio Landlord’ and some lenders do not lend to portfolio landlords.

Other lenders will reject applicants who have more than 10 mortgaged buy to lets. The market thins out the larger your portfolio.

Yes, many lenders will lend on a home of multiple occupation (HMO). This can be a complex area however as the number of rooms and the nature of the property greatly effect which lenders will consider the case.

As with all mortgages you can settle your buy to let mortgage early. You do need to be careful however as most mortgage products in the buy to let market to carry an early repayment charge.

The buy to let mortgage market is very difficult to navigate even for many Mortgage Brokers. A Landlord is unlikely to get the best result by approaching lenders direct.