Compare Buy to Let deals
Compare 1000s of buy to let mortgage rates & deals
Our Buy to Let best buys
When compiling our Buy to Let best buy tables we compare the best Buy to Let mortgage rates from across the UK market, including deals that are exclusive to us. It's important to remember that the best Buy to Let mortgage deals are not necessarily about getting the lowest mortgage rate possible, you also need to take into account all the fees and charges associated in setting up your new mortgage deal.
By choosing L&C to find your next Buy to Let mortgage deal our advisers will research the market for you, looking at criteria, set up fees and the rate to help you compare the best Buy to Let mortgage deal for your circumstances, saving you time and effort. Our best buy tables above show you the Buy to Let mortgage deals currently available, both fixed rates and variable rates, whether you are looking to purchase or remortgage to a better deal.
Getting the right Buy to Let mortgage deal
Buy to Let mortgages are designed for people who want to buy a property and rent it out rather than live in it themselves.
Despite changes which restrict Buy to Let tax relief for landlords, and a stamp duty surcharge on Buy to Let properties, many people still see renting out property as an attractive way to generate an income. Current low interest rates mean that there are plenty of competitive Buy to Let mortgage deals to choose from.
You can’t apply for a standard residential mortgage on a property that you let out as a landlord. If you already have a residential mortgage on the property you want to let out you should talk to your lender about switching to a landlord mortgage, or seek advice from a Buy to Let mortgage broker if you are buying a new property to let out.
Here, we explain everything you need to help you find the best deal.
Why apply for a Buy to Let mortgage with L&C?
Applying for a Buy to Let mortgage with L&C can save you time, hassle and money.
- Our online Mortgage Finder has been designed for both desktop and mobile devices, making it possible for you to start your Buy to Let mortgage journey whether you’re at home or on the go
- Answer a few questions online or over the phone and we’ll let you know which deals you’re eligible for – no need for a credit check
- You can compare Buy to Let deals from a wide range of high street and specialist lenders, and can filter your options by indicating whether you want to go for a fixed or a variable Buy to Let deal, and how long you want your deal to last
- Work out how much you can borrow and how much rent you might charge using our handy Buy to Let mortgage calculators
- You can track your Buy to Let mortgage application online 24/7. We’ll appoint a dedicated case manager to do all the legwork for you
- Our advice won’t cost you a penny. Like all brokers we’ll receive a payment from the lender when your Buy to Let mortgage completes – but unlike other brokers, we won’t charge you a fee on top of this. You’ll pay no more applying through us than you would going directly to the lender on the same deal.
Who can get a Buy to Let mortgage?
As well as checking your rental income is sufficient, lenders will have other criteria you need to meet before they’ll offer you a Buy to Let mortgage. Buy to Let mortgages can be more risky for lenders so they tend to have stricter eligibility requirements than for residential mortgages.
- Many lenders have a minimum income requirement, which is often £25,000 a year
- You must typically be over the age of 21
- Some lenders will also impose upper age limits too. They may require, for example, that you will be no older than 85 at the end of the mortgage term
- It’s possible to get a Buy to Let mortgage if you’re a first time buyer landlord, but your mortgage choices are likely to be restricted. Lenders will usually prefer you to be a homeowner.
Find the best Buy to Let mortgage rates and deals
There are four main steps to follow when finding the best Buy to Let mortgage deals.
Step 1
Find out how much you can borrow. Think about your budget including how much deposit you can afford to put down. Use our Buy to Let mortgage calculator if you need help.
Step 2
Use our rent calculator to work out how much rent you might charge. It uses industry data to look at the typical rent you might expect depending on the postcode.
Step 3
Think about what type of Buy to Let mortgage deal you want. For example, if budgeting certainty is a priority, you might prefer a fixed rate Buy to Let mortgage, whereas if you’re comfortable with fluctuating monthly payments, you might prefer a variable rate mortgage.
Step 4
Compare Buy to Let mortgage deals using our online Mortgage Finder tool.
Simply enter a few details and we'll show you the Buy to Let deals from across the market that you're likely to qualify for, and how much they'll cost.
You can narrow your selection down by indicating whether you want to go for a fixed or a variable Buy to Let deal, and how long you want your deal to last.
Choosing the best mortgage for you can be tricky – that’s where L&C can help. Speak to one of our expert mortgage advisers or complete our Mortgage Finder and we’ll recommend the best deal for your circumstances.
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Buy to Let FAQs
What is a Buy to Let mortgage?
A Buy to Let mortgage is the type of mortgage you’ll need if you’re purchasing a property to rent out to a tenant. The amount you can borrow with a Buy to Let mortgage is mainly based on the rental income that the property is likely to bring in, whereas with a standard mortgage, lenders will look at your salary and outgoings. Find out more about how Buy to Let mortgages work.
What percentage deposit do I need for a Buy to Let mortgage?
You’ll typically need a deposit of around 25% of the property value to apply for a Buy to Let mortgage. However, some lenders will accept smaller deposits of around 15%, provided you can demonstrate the rental income is sufficient. Bear in mind that the bigger the deposit you can afford the better the mortgage rates you’re likely to get.
How are repayments calculated on a Buy to Let mortgage?
Buy to Let mortgage payments are calculated using the amount borrowed, the interest rate you will pay and the term of your mortgage. You can use our mortgage calculator to crunch the numbers and see what your monthly payments could be. Buy to Let mortgages are often arranged on an interest only basis, which mean the monthly payments will only cover the interest on the mortgage. It’s vital to work out how you’ll repay the capital, as this must be paid in full when the mortgage term ends.
Is a Buy to Let mortgage cheaper than a standard mortgage?
No, Buy to Let mortgage rates are usually higher than standard residential mortgage rates. This is because lending on an investment property is considered a higher risk than lending to owner-occupiers.
Can I afford a Buy to Let mortgage?
When deciding whether you can afford a Buy to Let mortgage, you’ll need to consider not only whether you have enough savings to cover the deposit and any fees, but also how you’d cope if there were void periods. These are the times when your property isn’t let out and you must cover the mortgage payments yourself. Our Buy to Let calculator can help you find out how much your monthly mortgage payments are going to set you back.
What additional fees come with being a landlord?
There are several costs you’ll need to factor in if you’re considering becoming a landlord. For example, you’ll usually have letting and management fees to pay as well as accountant and legal fees. As the landlord, you’ll also be responsible for the cost of property repairs and maintenance, plus any ground rent, water rates and buildings insurance. Remember too that any rental income you earn from renting your property will be liable for income tax. Learn more about some of the things you'll need to think about when Buying to Let.
Are there minimum and maximum loan amounts?
There’s no fixed minimum or maximum amount you can borrow with a Buy to Let mortgage, although specific products may have specific loan sizes, so make sure you check before you apply.
Can I apply for a mortgage in my limited company name?
Yes, you can apply for a Buy to Let mortgage in a limited company name. If you’re setting up a limited company specifically to purchase a Buy to Let property you should seek professional tax advice to help you decide whether this is the best course of action to take based on your individual circumstances.
Can I make overpayments on my Buy to Let mortgage?
Most lenders will typically allow you to overpay up to 10% of your mortgage capital each year without penalty. However, this can vary depending on the lender and the product you’ve chosen, so you’ll need to check the rules of your specific deal before you overpay.