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Mortgages for Landlords

Best Mortgage Rates

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Mortgages for Landlords

    • 3.89% Initial
    • 5 year fixed
    • 5.9% APRC
    • Cashback Max £1,250
      Free Legals
      Free Valuation
    • Get quotes
    • 3.92% Initial
    • 5 year fixed
    • 6.7% APRC
    • Cashback Max £250
      Free Legals
      Free Valuation
    • Get quotes
    • 3.92% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.94% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.97% Initial
    • 5 year fixed
    • 6.5% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.98% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 3.99% Initial
    • 5 year fixed
    • 6.5% APRC
    • Cashback £0
      Free Legals
      Free Valuation
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    • 4.00% Initial
    • 5 year fixed
    • 6.8% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.00% Initial
    • 5 year fixed
    • 5.9% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes
    • 4.00% Initial
    • 2 year fixed
    • 6.7% APRC
    • Cashback £0
      Free Legals
      Free Valuation
    • Get quotes

Representative example based on a fixed rate mortgage

A mortgage of £375,000 payable over 20 years initially on a fixed rate for 5 years at 4.38% and then at the standard variable rate of 7.65% for the remaining 15 years would require 60 monthly payments of £2,351.88 and then 180 monthly payments of £2,899.55.

The total amount payable would be £663,156.80 which includes interest and product fees of £1,124.

The overall cost for comparison is 6.5% APRC representative.

Early repayment charges may apply.

Mortgages for Landlords

Landlord mortgages: compare the latest deals

To buy a property to rent out as a landlord, you will need a buy-to-let mortgage, which is a special mortgage designed for landlords.

When calculating the affordability of a buy-to-let mortgage, the lender will consider your expected income from rent compared to a standard residential mortgage.

Finding the best mortgage deal for landlords

 During your search for mortgages for landlords, you should keep these points in mind:

  • Deposits are usually higher for landlord mortgages than for residential mortgages of the same amount. The deposit for a landlord mortgage is usually at least 20% of the property's value, whereas a standard residential mortgage can require as little as 5% of the property's value in some cases

  • When planning your budget for a landlord property purchase, consider the higher interest rates and arrangement fees that are likely to be associated with landlord mortgages. Mortgage lenders who specialize in mortgage deals for landlords will usually only offer mortgages up to a certain amount

    Property portfolio size restrictions - Some buy to let mortgage lenders may only offer landlord mortgages for portfolios of up to a certain size

  • Calculation of affordability based on rental income – When deciding whether to offer a buy to let mortgage, landlord mortgage lenders will take into account the rental income you expect to receive, along with your own income, deposit size, and the type of property you wish to purchase

  • Lenders require that you show them that the anticipated rental income on the property you want to buy is around 125% of the monthly mortgage payments

 

Landlord mortgages - Other costs to consider

 When you become a landlord for the first time, you will need to consider more than just your landlord mortgage deal. Additionally, you will need to plan for the following expenses:

  • Fees charged by letting agents

  • Upkeep and maintenance

  • Safety checks should be performed annually

  • Insurance for landlords and renters

  • Tax on stamps

  • Rental income must be declared on your annual self-assessment form

  • Capital gains tax (CGT) when you sell the property – unlike your primary residence, a property that you rent out is not exempt from capital gains tax Inheritance tax

Renting a property

As a landlord, you should consider the following factors:

  • Some mortgages for landlords will not be available on properties under a certain size. If you want to get a landlord mortgage for a studio flat, you will need at least 30 square metres in size, as well as a separate bathroom and kitchen area - which not all studio flats have

  • Lenders won't lend to landlords who want to buy a property above a commercial building. Many lenders consider noise or other disturbances adversely affecting the property's resale value

 

To investigate your landlord finance options call our broker team or fill in our call back form -  speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464

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