Buy to Let Mortgages

There is a vast array of Buy to Let (BTL) mortgages available, although knowing where to look can often be the challenge. These mortgages allow you to purchase or re-finance a property that you let and can meet a number of wider circumstances such as portfolio lending, houses of multiple occupancy and multi-unit blocks.

 

Many lenders require an intermediary like ourselves to access their BTL products and, by speaking to a specialist adviser at Creative Lending Solutions, the most suitable option can soon be identified.

Helping you to navigate the Buy to Let mortgage market

We’ll search the market to find the best fit for you. Fill out our short form and we’ll be in touch to explore your options.

I cannot praise Mike Newman enough for the superb service he provided in arranging our mortgage. I'd have absolutely no reservations about recommending his services. Thanks, Mike!

M.F & S.F Cardiff

First class service. Mike Newman is extremely good at his job, knows his products that best suit your needs, responds really quickly to your messages, great to speak to on the phone.

J.M Penzance

Mike was amazing! After being let down by my own bank, Mike sorted everything. The whole process went along without any problems at all. He was always on hand if ever I needed to ask anything and he kept in touch with me along the way! Absolute 5* service!

K.P Birmingham

A first rate, professional service. We were very impressed with Mike. He kept us fully informed at each stage of the process, answering our queries and making what some consider a complicated and stressful time absolutely painless.

P.R & S.R Fareham

Outstanding service. Mike was extremely polite, helpful and knowledgeable. Always kept in contact and replied to emails returned calls quick and efficiently. More than happy with the service.

A.P Birchington

We are so pleased that we decided to choose this company for finding a new mortgage. Communication and their patience at answering our queries was excellent. We will not hesitate to use Creative in the future.

G.R & R.R Norfolk

Absolutely excellent, from beginning to end I couldn't fault Mike and Natalie. On time, responsive, proactive and accurate. Also the respect and understanding they demonstrated was unexpected in this world today.

S.O & N.O Lyme Regis

Lender requirements for a Buy to Let Mortgage

Buy to Let mortgages are typically capped at 75% Loan to Value, meaning that a higher deposit is required when purchasing a property for this purpose, or more equity is available in a current property you wish to remortgage. In some circumstances it may be possible to take a mortgage up to 80% Loan to Value, although there will be a noticeable increase in the interest rate. Interest rates as whole may be higher on a BTL mortgage than a residential mortgage and fees can often be greater, particularly when they are charged at a percentage of the borrowing.


To qualify for a BTL mortgage, some lenders may require you to have a certain level of personal income (which offers re-assurance for times where there may be rental voids), whilst other lenders do not stipulate a minimum income requirement. The rental income received, or which is about to be received, will form the basis of an affordability assessment and meeting mortgage payments that are calculated on stressed rates of interest will be required. 


Some lenders will assess affordability for a BTL mortgage on personal income, in the manner that a residential mortgage would be assessed. This is typical of properties which are let to family members or where you may be a First-Time Buyer. Other lenders may use a portion of your personal income to meet any shortfall that your rental income has in meeting their stress test. This is called top-slicing. 


Getting to grips with the various methods of affordability applied by each lender can be tricky, and the help of an experienced adviser really can help arrive at a mortgage solution more quickly.

Buy to Let Variations

Let to Buy

A subtle difference with Buy to Let mortgages is a Let to Buy (LTB) mortgage. This type of loan is available if you decide to let your existing home whilst buying a new property to live in. In addition to paying off the existing residential mortgage you may be able to raise further borrowing towards the new purchase, if there is sufficient equity for this. Generally speaking, the lender will require a simultaneous completion of your new purchase with the LTB remortgage on your previous property.

Limited Company Buy to Let

A method that may be used to lower the tax implications of a Buy to Let mortgage is with a limited company, where corporation tax will be paid on the profit of the company rather than individual tax on income received.

 

The company itself must be set up as a Special Purpose Vehicle (SPV) and lenders will require it to hold a Standard Industrial Classification code relating to the ownership of investment properties. Common acceptable SIC codes are 68100/ 68209/ 68320/ 6820. Also required is that the company has not traded in any other sector prior to applying for this type of mortgage.

 

Whether a limited company BTL mortgage will be most suitable option for you will depend on your individual tax status and investment objectives. We recommend taking advice from a suitably qualified accountant or tax specialist to help you with this decision.

What Buy to Let Mortgage help do we offer?

At Creative Lending Solutions we have a detailed knowledge of the Buy to Let mortgage market that stretches beyond the headline rates of the lenders. 


By understanding the unique criteria of one lender over another this better helps us recommend the most appropriate option to you; whether this is simply to obtain a more favourable deal, to raise additional borrowing or switch the primary purpose of the property it will be secured against.


We keep things as simple as possible and will be on hand at every step of the new mortgage process. We will complete the lender’s application form and forward them your supporting documentation. We will respond to the lender’s underwriter with answers to any questions they may have and to offer assurances where they may be required. Once your new mortgage offer has been issued, we will remain available for any questions you may have and for any changes that may be needed up until completion.

More great reasons to get in touch

  • Friendly, professional & convenient
  • Over 20 years’ industry experience
  • We value our customers
  • Same day pre-approvals
  • Full support provided
  • Jargon-free
  • Fast communication
  • Available weekdays until 7pm

Some forms of Buy to Let mortgages are not regulated by the Financial Conduct Authority.

Your property may be repossessed if you do not keep up repayments on your mortgage.

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