Buy to Let Mortgage Guide

Latest Deal - NatWest 2 Year Fixed BUY TO LET » NatWest Mortgages

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1.82%Reverts to 4.25% after 2 years


Overall Cost for Comparison 4.40% APRC. This is the cost of the mortgage over the full term. Early redemption charges may apply.

Guide to Buy To Let Mortgage Deals

As a general guide a buy to let mortgage is a sum of money that your bank lends you to purchase a property that you will use for rental purposes. The main difference over a standard mortgage is that the lender will take into account the rental income that will be generated from the property as the main way of paying the mortgage loan, and in some cases the borrower may also be able to factor in other income. 

Buy to Let Mortgage Deal Selection

Provider

Type

Initial Interest Rate

Initial Term

Max LTV*Product Fee 
Fixed
Buy-to-Let

1.82%

Reverts to 4.25%

2

Years

60%

YesMore Info >
  • Call 0800 096 7962 to speak to an RBS mortgage specialist.
Fixed
Buy-to-Let

1.33%

Reverts to 4.74%

2

Years

60%

YesMore Info >
Fixed
Buy-to-Let

1.84%

Reverts to 4.74%

2

Years

75%

YesMore Info >
  • Available to all customers
  • Call 0330 333 3893 to speak to us about this deal
  • Product fee £995
Tracker
Buy-to-Let

2.40%

Reverts to 4.25%

2

Years

70%

YesMore Info >
  • Call 0800 158 2934 to speak to a NatWest mortgage specialist
Fixed
Buy-to-Let

2.73%

Reverts to 4.25%

2 Years

75%

YesMore Info >
  • Call 0800 158 2934 to speak to a NatWest mortgage specialist
Fixed
Buy-to-Let

2.38%

Reverts to 4.74%

5

Years

60%

YesMore Info >
Fixed
Buy to Let

3.89%

Reverts to 5.10%

2

Years

75%

YesMore Info >
  • Available to all customers
  • Product fee of £999
Fixed
Buy to Let

4.79%

Reverts to 5.10%

2

Years

80%

YesMore Info >
  • Available to all customers
  • Product fee of £999
Fixed
Buy to Let

4.99%

Reverts to 5.10%

5

Years

80%

YesMore Info >
  • Available to all customers
  • Product fee of £999

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.


The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).


In this example the overall cost for comparison is 3.7% APRC representative.


YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Independent Buy to Let Mortgage Quotes & Advice Service
Mortgage ServiceIndependent Mortgage AdviceMortgage Quotes Tailored to youFast Track ServiceMortgage Protection ReviewGet Quotes
yesyesyesyesMore Info >
  • Call 0117 332 6063
  • Independent buy to let mortgage advice
  • Experienced administration support
  • Fast Track buy to let mortgage Service

Buy To Let Mortgage Facts

 

Rental and additional income will normally be independently assessed on an ability to pay basis. Minimum rental income again will differ from one lender to the next but 125% of rental cover is often required.


The recession of 2007/09 has been problematic for the UK buy to let market. Many mortgage lenders have tightened up their lending criteria making it difficult for first time landlords to get onto the market. The minimum deposit levels are typically 25% and those lenders that require less downpayment will charge in interest for taking on this increased "risk".

 

Some lenders will have a maximum property portfolio and all will have a maximum total advance e.g. £2 million. It is important to note that product fees on buy to let mortgages are often high e.g. 2.5% of the mortgage so getting a specialist broker to help you get a deal can save both time and money.

 

If you are considering a buy to let property general guidance would be:

  • Choose the right property for you - think about location, house size, condition and your tenants.
  • Shop around for the best mortgage deals and use a specialist buy to let mortgage broker (preferably regulated by the FSA)
  • Find a flexible buy to let mortgage deal that suit your personal requirements.
  • Think about the extra costs will you have to spend on such things as maintenance, furnishings, agency fees, insurance, decorating and legal costs. Budget for these!
  • Go with a professional and legitimate letting agency.


If you are looking for a buy to let mortgage advice and quotes, you may want to start your search with us!

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The above mortgage products highlighted on this website are available directly through lenders who will be able to provide further information about the product you are interested in. If you are unsure about what mortgage product is suitable for you, we suggest you speak to an independent mortgage broker