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Buy to Let Mortgages - Help & Advice

Whether you’re thinking about purchasing your first buy to let property or adding to a portfolio, securing the right buy to let mortgage is essential to maximise your potential profit. Your mortgage repayments will be your biggest ongoing cost of your buy to let property. To give your investment the best potential - use a qualified mortgage adviser to help find you the most suitable deal for your circumstances.

The Mortgage Hut team is here to help you to secure the right buy to let mortgage to help you achieve competitive returns on your financial investment.

What is a Buy to Let Mortgage?

A buy to let mortgage is a mortgage product specifically for properties which are being let out. They typically require a larger deposit and have higher interest rates and arrangement fees than normal mortgages. The amount you can borrow is usually based on the amount you will be able to let your property out for.

You will may need to consider a buy to let mortgages if you are:

  • Buying a house to let out for additional income/investment

  • Purchasing a holiday home which you intend to let out

  • An accidental landlord - have resorted to letting out a property that you have been unable to sell

Buy to Let (BTL) Mortgages

The Mortgage Hut are specialist buy to let* mortgage brokers providing expert insight and information to investors about the best buy to let mortgage offers available.

Buy to Let* and property financial investment has grown tremendously over the last couple of years, and with it has the broad range of buy to let mortgages.

  • Buy to let* should be seen as a long term financial investment and it’s essential to be completely informed so that there are no unforeseen surprises along the way. Contact us and we can help you with the procedure and offer guidance to prevent common mistakes, maximising your returns and reducing your risk.
  • Some people see their property portfolios as a future pension, some are looking just to supplement their existing earnings and others are buying shrewdly to generate cash on the future increases in property value. There are also individuals who find themselves unable to sell a property and see no alternative other than to lease the property out.
*Note: the Financial Conduct Authority does not regulate some forms of "buy to let". 

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

Why Choose Buy to Let as an Investment?

Try not to let the recent loss of tax relief and increase in stamp duty for buy to let property put you off this kind of investment, there is still money to be made, it is a matter of doing your sums right and keeping costs such as mortgage repayments as low as possible. Several aspects of the current economic conditions have made buy to let look more appealing:

  • Current low interest rates on savings accounts and bonds mean people are reconsidering where the best potential for investment is - many are choosing property.

  • Record low interest rates on buy to let mortgages equal more potential profit from your investment each month.

  • As opposed to other investments, property has the potential for a large increase in value through renovation or redecoration.

  • With many people struggling to raise the deposit necessary to purchase their own home, there is plenty of demand for rental properties especially in certain areas of the country.

Challenges When Applying for a Buy to Let Mortgage

Raising a Large Deposit

Buy to let mortgages require a larger deposit than a normal mortgage, normally between 20% and 40%.

Budgeting for Extra Costs

When purchasing a buy to let property there are a number of costs which will be higher than when purchasing a property for your personal use such as higher mortgage arrangement fees and the extra 3% of stamp duty for additional properties.

Having a High Enough Yield

The lender you apply to will need to ensure that your rental income from the property you purchase is enough to cover your mortgage repayments. They will usually expect the rent to be at least 125% of the repayment.

Is Buy to Let the Right Investment for You?

There are many important things to consider before deciding if an investment or further investment in buy to let is right for you:

  • Buy to let is a long term investment
  • Buy to let investments involve taking a risk
  • Your property may rise or fall in value
  • Your interest rate may rise or fall

There are a number of costs involved in addition to your mortgage - have you done your sums?

How a Mortgage Broker can Help

Buy to Let Mortgage Advice

  • Mortgage brokers have access to a broad range of buy to let products provided by large high street banks as well as smaller banks and building societies and specialist lenders.

  • We can match your specific financial circumstances with the most suitable deals for you, enabling you to achieve a competitive return from your investment.

  • Buy to let mortgages can have large fees and higher than average interest rates. A mortgage broker can help you to weigh up the options available to you.

  • Applying for a mortgage using a broker is quick and easy, we can save you time and stress leaving you free to focus on other aspects of your new investment.