Mortgages
Buy to Let Mortgage Broker for First Time and Growing Landlords
Residential lending is assessed on your income. Buy to let is assessed mainly on what the property will earn, and that single difference changes which lenders will help you.
- Personal or limited company
- First time landlords
- Portfolio cases
- £0 broker fees
Free, no obligation, and no credit check to get started.
A buy to let mortgage broker earns their place on the arithmetic. We advise first time landlords buying one property and experienced landlords adding to a portfolio, in personal names or through a limited company.
Our advice is free to you.
How Much You Can Borrow: Rental Cover
Lenders test whether the expected rent covers the mortgage interest with a margin, then apply a stress rate higher than the rate you actually pay. Two properties with the same price can therefore borrow very different amounts depending on the rent they command.
The stress test and the required cover both vary by lender and by whether you are a basic or higher rate taxpayer. Bring us the rental figure from a local agent and we will tell you what is achievable before you offer.
Deposits and Pricing
Expect to put down at least 25 percent, and often more for the sharpest rates. Buy to let pricing sits above residential pricing, and many products carry percentage based arrangement fees rather than flat ones, which changes the maths considerably on larger loans.
Comparing on headline rate alone. A lower rate with a two percent fee can cost more than a higher rate with a flat fee, depending on your loan size. We compare on total cost over the deal period.
Personal Name or Limited Company
Since the changes to how mortgage interest is treated for individual landlords, many buyers now purchase through a limited company, where interest remains a deductible business expense. Company buy to let mortgages usually price slightly higher and come from a narrower lender pool, but for higher rate taxpayers the overall position can still be better.
This is a genuine tax question rather than a mortgage one. We will explain how each structure works and what lenders will do with it, then you take the tax decision with an accountant. We are not tax advisers.
First Time Landlords
Buying a rental before you own your own home is possible but specialist, with fewer lenders and stricter conditions. Most lenders prefer landlords who are already homeowners, and some set a minimum personal income, often around 25,000 pounds, regardless of the rent the property earns.
HMOs, Holiday Lets and Multi Unit
Standard buy to let means a single household on one tenancy. A house in multiple occupation, where rooms are let individually, produces higher yields and needs an HMO lender, often licensing from the council and usually some landlord experience first.
Holiday lets are assessed on projected seasonal income rather than a single monthly rent, and the lender pool is smaller again. All are workable, and none is a first purchase we would usually recommend.
Portfolio Landlords
Four or more mortgaged buy to let properties makes you a portfolio landlord in lending terms. Lenders assess the whole portfolio rather than just the property you are buying, asking for a schedule of properties, total borrowing, aggregate rental income and often a business plan.
It is more paperwork, and it is routine once you know what is coming. Getting the portfolio schedule accurate before we approach anyone saves weeks.
Thinking About Yield, Not Just Rate
Gross yield is annual rent divided by purchase price, useful for comparing areas quickly. Net yield is what remains after the mortgage, letting fees, insurance, maintenance and void periods, and it is the number that tells you whether the investment works.
A cheaper property in a modest area often produces a better yield than an expensive one in a prime area, though it may see less capital growth. Decide which one you are buying for before you fall in love with a property.
What Else to Budget For
- Stamp duty, including the additional property surcharge.
- Letting agent fees, typically a percentage of the monthly rent.
- Void periods, when the property sits empty between tenants.
- Maintenance, safety certificates and compliance with the rules for landlords.
- Landlord insurance, which is not the same as standard home insurance.
No paperwork and no credit check. An adviser calls you back with your real options.
Start nowor call 0117 370 6363Frequently Asked Questions
How much deposit do I need for a buy to let?
At least 25 percent for most lenders, with better pricing available at 35 to 40 percent. A larger deposit also helps the rental cover calculation.
Can I live in my buy to let property?
No. Buy to let mortgages are for letting to tenants and living there breaches the terms. If your plans change, the mortgage needs to change with them.
Can I buy to let on a work visa?
It is possible but specialist, with fewer lenders and stricter conditions than residential lending. Most visa holders buy their own home first and invest later.
Are buy to let mortgages interest only?
Most are, which keeps monthly payments lower and rental yield higher. The balance remains outstanding at the end of the term, so you need a plan for repaying it.
Do I need a limited company?
Not necessarily. It depends on your tax position and your plans, and it is a question for your accountant. We will explain what lenders will do with either structure.
Find out what the rent will actually support
Send us the property and the expected rent. We will tell you what is borrowable and roughly what it costs, before you offer.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate most buy to let mortgages.
We are not tax advisers. The tax treatment of buy to let property depends on your individual circumstances and may change in future.
For mortgage and insurance we do not charge any fee as we are remunerated by commission from lenders and providers.
Infinity Financials Ltd is directly authorised and regulated by the Financial Conduct Authority, FCA registration number 993949. Infinity Mortgage is a trading style of Infinity Financials Ltd.