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The Buy-To-Let process is slightly different from applying for a standard mortgage, and our mortgage advisers are here to help you navigate it, whether it’s your first purchase or you’re expanding your portfolio. Before you commit to a purchase, look at not only what you can afford, but also the potential rental income in the area you are exploring. Be sure to take account of any renovation costs plus other expenses such as licences and certifications, as well as the Land and Buildings Transaction Tax and Additional Dwelling Supplement.

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Your Options

Interest Only Mortgage

  • If you are buying property as an investment, an interest only mortgage is worth considering.
  • It will keep your monthly repayments lower, and as long as your property maintains or increases its value during the time that you own it, you’ll be able to pay off the mortgage when you sell it.
  • An interest-only mortgage is ideal if you want to maximise your monthly income from rent, and don’t mind making a smaller profit at the end of the investment period.
  • You may prefer to set up an ISA or other savings method to help pay off the capital.

Repayment Mortgage

  • In some cases, property owners may choose to repay the mortgage from the monthly rental income.
  • This will mean a lower return on your monthly payments however as you are reducing the debt every month there could be more equity available in the future when you come to sell.
  • As you are reducing the debt every month you can potentially release further equity from the property in the future.

What To Consider

Overpayment Options

If you want the flexibility to make occasional or regular overpayments when you are able, check that your preferred mortgage allows you to overpay and what the conditions are.

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Offset Mortgage

Some mortgages work in tandem with your savings to reduce your monthly payments or pay your mortgage off sooner. Tell your mortgage adviser if you want to look at offset mortgages.

Future Plans

Before making a final decision think ahead and take into account any major life changes such as starting a family or retiring, which could affect your ability to manage your repayments.

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Tax Position

If you have a number of properties it would be prudent to speak to your Accountant or Tax Adviser as it may be advantageous to buy future property through a Ltd company.

Consumer Buy-To-Let

Will the mortgage you are considering be regulated by the Financial Conduct Authority?

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What You Need To Know

  • What are the early repayment charges if you want to pay off all or some of the mortgage before the end of the fixed term?
  • What are the set up fees?
  • Are there any additional terms and conditions?
  • Apply well in advance of your preferred moving date to secure the best rates as many are only available for a limited time
  • If the interest rate drops during the application process you won’t necessarily miss out, you can change to the lower one
  • Do you already own property? There are a limited number of lenders that will allow those that don’t currently own property
  • Will your rent payments meet the lender's minimum requirements? If not, is your income sufficient to top this up

Testimonial

Professional, knowledgeable and efficient service from the start of the process.

Vicky Allan

What Do I Need?

  1. 4 Months Bank Statements
  2. 4 Months Payslips
  3. Last 2 Years SA302s & Tax Year Overviews / 2 Years Accounts
  4. P60
  5. Photographic ID
  6. Proof of Address

Work out what your monthly payments could be.

Mortgage repayment calculator

Mortgage questions? Check out our FAQs first.

Mortgage FAQ

Why Talk To An Adviser?

A mortgage adviser will take time to understand your plans and finances, and look at the possible income you could receive from your property, so that they can search through the Buy-To-Let mortgages available on the market to find the ones that suit your needs most closely.

They will also keep you right when it comes to the additional fees, taxes and other obligations relating to Buy-To-Let properties

Speak to us today and arrange an appointment to start the process.

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Speak To Our Mortgage Experts

We are always happy to chat. Please give us a call or drop us an email - we’d love to help.

Because we play by the book we want to tell you that...

Because we play by the book we want to tell you that...
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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Calluna Financial is an appointed representative of Mortgage Advice Bureau Limited and Mortgage Advice Bureau (Derby) Limited which are authorised and regulated by the Financial Conduct Authority. Calluna Financial: Registered Office: 6 Primrose Street, Alloa, Clackmannanshire, Scotland, FK10 1JG. Registered in England: SC815245.

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