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Mortgages for Rental Property

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Mortgages for Rental Property

    • 4.07% Initial
    • 5 year fixed
    • 6.7% APRC
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    • 4.07% Initial
    • 5 year fixed
    • 6% APRC
    • Cashback £0
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      Free Valuation
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    • 4.08% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
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    • 4.08% Initial
    • 5 year fixed
    • 6.4% APRC
    • Cashback £0
      Free Legals
      Free Valuation
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    • 4.09% Initial
    • 5 year fixed
    • 6.7% APRC
    • Cashback £0
      Free Legals
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    • 4.11% Initial
    • 5 year fixed
    • 5.8% APRC
    • Cashback £0
      Free Legals
      Free Valuation
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    • 4.12% Initial
    • 5 year fixed
    • 5.8% APRC
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    • 4.13% Initial
    • 5 year fixed
    • 6.4% APRC
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      Free Legals
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    • 4.14% Initial
    • 5 year fixed
    • 6.3% APRC
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    • 4.14% Initial
    • 2 year fixed
    • 7.7% APRC
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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 rental property

Mortgages for rental properties: compare them

Before you purchase a rental property with a mortgage, you should decide if you want to rent it to residential tenants or short-term holidaymakers.

Before approaching a potential mortgage provider, consider these points.

 

Buy-to-let mortgages

You will need a specialist buy-to-let mortgage if you want to rent out your property to full-time tenants.

In most cases, these types of mortgages require a higher deposit than residential mortgages. Also, buy-to-let mortgages tend to offer lower loan-to-value deals than residential mortgages.

Generally, rental mortgages start at 60-75% loan-to-value, whereas residential mortgages can reach 95% in some circumstances.

 

Mortgage costs for rental properties

In addition to higher fees, mortgages for rental property usually have higher interest rates, which can make them an important initial expense to consider.

Rental income from letting out the property will be used to determine your ability to afford the mortgage. A monthly rental rate of at least 125% of the mortgage repayments will be required by most mortgage providers for rental properties. 

To investigate your 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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