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Buy to let
mortgages

Whether it’s your first or 100th property investment, our award-winning brokers are here to help 

Getting started with buy to let mortgages

Buy to let is a fantastic way to start your property investment journey. BTL provides many opportunities for new rental property investors and experienced landlords, from vanilla properties to complex multi-units. 

Many different banks and lenders offer buy to let mortgages, and several factors impact which lender is right for you. Factors like property type, your situation, how you invest, and your experience all impact your mortgage options. As a whole-of-market mortgage broker, whatever your requirements, we’ll find the best lender and best mortgage rate for you. 

Whether you’re new to the market or have years of property investment experience, it’s important to keep up to date. Here, you’ll find a wide range of resources to get you started, from expert how-to guides, insightful news articles and case studies to our bespoke buy to let calculator to source you your next rate. 

Do I need a buy to let mortgage to rent out a property?  

Yes, you will need a buy to let mortgage in place to let out your rental property to tenants. If you let out your property on a residential mortgage without your lender’s consent, you may be in breach of your mortgage conditions. Get in touch with one of our expert brokers to discuss your options. 

What is the difference between a buy to let mortgage and a residential mortgage?

A residential mortgage is a loan secured on a property for you to live in, whereas a buy to let mortgage is a loan secured on a property you let out or rent to tenants Buy to let mortgages tend to incur higher fees, and mortgage interest rates are typically higher as well, as they are more specialist mortgage products. 

Furthermore, buy to let is not a regulated industry, whereas residential mortgages are. As such, you only have access to the Financial Services Ombudsman and Financial Services Compensation Scheme when applying for a mortgage for your own home. This is because buy to let mortgages are considered to be business transactions, and therefore are not eligible for the FCA’s consumer regulations. 

Why MFB for buy to let?

Our award-winning buy to let brokers are experts in their field. Our enthusiasm and experience make us the best brokerage to help with your buy to let mortgage application. We strive to deliver excellence with every mortgage application, no matter how complex or straightforward your enquiry may be. Whatever you’re looking to do, we’re the team to help. 

  • It’s our mission to be the mortgage brokerage that our clients love working with, and our employees love working for.
  • We put you, our client, at the heart of everything we do, treating your mortgage as if it’s our own.
  • Our people are our best asset. We train, reward, and inspire our team to help them provide you with the best service possible.
  • With over 30 years of experience, we’ve never stopped learning. Whatever your property investment, you’ll have an expert with you at every stage.
  • We’re regulated by the FCA and a founder-member of the National Association of Commercial Finance Brokers (NACFB), following their Code of Practice.
  • Integrity is non-negotiable; we’ll always be honest and fair with you. Our advice is unbiased and always in your best interests.

What our clients say…

We could go on all day about what makes us great, but our client's reviews speak for themselves

Find out how much you can borrow

Use our calculator below to get started with your property investment plans.

Let’s find a buy to
let
mortgage

Our easy-to-use buy to let mortgage calculator can help you find the best mortgage rate. It also shows you how much you will pay each month. All you have to do is give us a few details. 

Frequently asked buy to let mortgage questions…

What is a buy to let mortgage?

A buy to let mortgage is a loan secured on a residential property with the specific aim of letting it out to tenants.

What is 'loan to value' (LTV)?

The loan to value (LTV) is how much you are borrowing as a percentage of the value of the property in question. Typically, landlords secure buy to let mortgage rates at 75% LTV.

What is the ‘rental income’?

Your gross rental income is the total amount your tenant pays before you subtract any expenses. Your net rental income is your true earnings after you’ve accounted for any fees, running costs, or taxes. To calculate the rental yield, divide your gross annual rental income by the property value, then multiply by 100.

What is the ‘interest cover ratio’ (ICR)?

The ‘ICR’ is part of a lender’s affordability assessment and is frequently referred to as part of a lender’s RTI (rent to interest) calculation.

RTI calculations for a five-year fixed rate are set at 145% at the ‘pay rate’ (the actual mortgage rate) for individual borrowers and 125% for Limited Companies. The reason it's lower for Limited Companies is because they generally pay a lower rate of tax. Therefore, lenders underwrite the application knowing you can afford more than if you were borrowing in your own name. Please seek professional tax advice before making any property investment decisions.

Lenders use these RTI checks to assess how affordable a mortgage product is for your current circumstances. It ensures the rental income comfortably covers the monthly mortgage payments and any additional associated costs.  

How much deposit do you need for a buy to let mortgage?

Buy to let mortgage lenders typically prefer borrowers to put down a 25% deposit. If you have a minimum deposit you can get BTL mortgages with a 15% deposit; however, there are fewer mortgage products available, and the interest rates are higher. Overall, rates are more competitive when you can put down a deposit of 25% or more. 

What are the arrangement fees on buy to let mortgages?

Arrangement fees are the amount a lender charges to set up the mortgage for you. You usually pay this once the mortgage application completes, although some lenders let you add it to the loan. However, remember that you'll pay interest on the fee if you add it to the loan. 

The product fee can be a percentage of the loan or a fixed amount. Some lenders may charge higher arrangement fees to bring down the interest rate. 

 

Should I choose a fixed or variable rate mortgage?

Whether a fixed or variable-rate mortgage is better for you will depend on your circumstances. Speak to our expert brokers to discuss your options.

Why should I use a broker for my buy to let mortgage?

Here are some of the benefits of using MFB to secure your buy to let mortgage: 

1. Full market choice

Working with a whole-of-market broker gives you access to all products available on the buy to let market. Your broker will review the whole market, find you the best options and give you expert advice.  At MFB, we've developed relationships with some of the biggest BTL lenders. This means we can access exclusive and limited-edition ranges you can't get anywhere else.

2. Dealing with experienced professionals 

To reduce the stress and time it takes to complete a mortgage application, working with our expert team at MFB is your best option. We'll make sure you have all the necessary supporting documentation for your application, and package it up. More support and less stress for you, and a higher chance of your lender accepting your application first-time! 

3. Mortgage market volatility 

The mortgage market is constantly changing. Lenders often change criteria and withdraw mortgage rates at short notice, making it difficult to keep up. Our brokers stay on top of the latest changes so they can always provide you with the most up-to-date advice. 

Lenders usually let us know about these changes ahead of time, giving our team time to reassess your application. We'll always try our hardest to secure you the best deal on the ideal loan amount for your property investment plans. 

4. Invaluable advice and support

It's our priority to secure you the best mortgage rate for your needs and provide a seamless mortgage application process. You can ask questions and discuss any concerns with your dedicated MFB broker. They'll highlight the pros and risks of your options to help you make the right financial decisions. We want to support your property investment plans and help you grow your portfolio, every step of the way.  

 At MFB, your broker remains your broker. So when you need us, there's someone here who knows you and your investment goals. 

Does MFB have access to a wider range of mortgage deals?

We have access to all available mortgage lenders and deals on the intermediary market. Our reputation and experience mean that some lenders give us exclusive or semi-exclusive access to products. This means that we have access to mortgages you can't apply for without us. To be sure you're getting the best deal available, speak to our mortgage makers. 

Explore our
latest brochure

Download our brochure for everything you need to know about buy to let mortgages. We cover frequently asked questions from landlords, and explore why a Limited Company could be the right option for you. 

Explore our latest brochure

Talk to an expert

Our friendly experts would love to hear from you. Give us a call, drop us an email, or choose a convenient time for us to get in touch.



Learn more about buy to let mortgages

Find my BTL mortgage

Search thousands of mortgage rates to find the best deal for you.

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How much can I borrow?

Use our buy to let calculator to get started with your property investment plans

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Limited Company
Mortgages

All you need to know about buy to let mortgages for Limited Companies and the benefits of limited company borrowing. 

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It’s time to remortgage

We’ll help you secure the best remortgage deal for your property investment needs.

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Meet our partners

We’ve partnered up with the best in the business to support you across all areas of your property finance journey.

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