Let’s find a buy to
let mortgage
Our easy-to-use buy to let mortgage calculator allows you to search and compare the best BTL mortgage deals. Use it to find a new mortgage interest rate and check how much your monthly repayments could be. All you have to do is give us a few details.
Secure your buy to let mortgage in 5 steps
Step 1: Search rates with our BTL calculator
Use our calculator to search for the best mortgage rates and get an idea of the type of mortgage deal you could secure. Simply, submit a quote and one of our BTL mortgage brokers will call you back. Then, they’ll complete a more in-depth search for you on our bespoke BTL mortgage sourcing system.
Step 2: Secure an agreement in principle (AIP)
Having completed a more in-depth search, our knowledgeable mortgage brokers will find you the most suitable deal and apply for that all-important AIP.
An AIP, or decision in principle (DIP), gives you a solid idea of how much you can borrow. It’ll also tell you the type of mortgage interest rates you can access and whether a lender will accept your application at all.
You can use the AIP to show estate agents and vendors that you’re a serious and credit-worthy applicant.
Step 3: BTL Mortgage Application process
Once you’ve found a property, we can start the formal buy to let mortgage application process. This is when we’ll need to collect documentation from you, including:
- 3-6 months of bank statements
- Proof of identity (ID) such as a valid passport or driver’s licence
- Proof of income
When we submit your application, an underwriter will review it, and a surveyor will value the property. If everything meets expectations, the lender should issue your formal mortgage offer within 4 to 6 weeks from application.
Step 4: Conveyancing
With your mortgage offer secured, your solicitor can begin the necessary searches and legal paperwork. Your dedicated MFB Client Relationship Manager will stay in touch to make sure everything is proceeding smoothly and help resolve any issues should they occur. Your solicitor will let you know when to pay your deposit.
Step 5: Completion
Once you’ve paid your deposit and all the legal work is complete, your solicitor will instruct your lender to release the funds. Congratulations – you now own a new buy to let investment property!
Where to start with
buy to let mortgages
How are buy to let mortgages calculated?
While every mortgage lender will have their own criteria for determining how much you can borrow, they all look at the following key factors when calculating a buy to let mortgage:
Loan to Value (LTV)
This is how much you are borrowing expressed as a percentage of the property value. Generally speaking, a lower LTV gives you access to more competitive mortgage interest rates and a higher LTV reduces the number of lenders available to you and usually increases the rates.
The majority of buy to let lenders cap their maximum loan amount to 75%. This means that even if you meet affordability criteria to borrow more, the most amount of funding you could access will still be up to 75% of the property value.
Rental Income
Buy to let properties should be self-funding and your mortgage product should be affordable for your current circumstances. As such, the rental income should cover the mortgage interest repayments plus any additional costs associated with running the property.
When lenders are stress-testing your affordability, they will typically use a ICR of 145% at payrate (the mortgage rate) for individual borrowers and 125% for Limited Companies.
How to compare BTL mortgage offers
There are three main things to consider when comparing buy to let mortgages, and the headline interest rate isn’t one of them!
Criteria – lender criteria vary enormously, so while you might be a textbook applicant for one, another wouldn’t even consider you! That’s why it’s best to start with the buy to let lenders that will consider you before you even think about mortgage interest rates.
Cost – the true cost of the mortgage is more important than the interest rate. While one product may have the lowest interest rate, it might have higher arrangement fees or additional fees that make it more expensive than a product with a slightly higher interest rate. Our bespoke buy to let mortgage sourcing system makes it easy for us to compare these costs for you.
Hidden fees – although less common now, some BTL mortgages have quirky additional terms, such as exit charges beyond the initial fixed-rate period. Our specialist mortgage experts will explain everything clearly and ensure you understand their recommendations before proceeding. Still, you and your solicitor must read over all the mortgage documentation before signing the mortgage offer.
Meet your mortgage makers.
Frequently asked buy to let questions…
What is a buy to let mortgage?
Do I need a buy to let mortgage to rent out a property?
How much deposit do you need for a buy to let?
What is the difference between a buy to let mortgage and a homebuyer mortgage?
What is a rent-to-interest (RTI) calculation?
How long should you borrow for?
What is top slicing?
Capital or interest-only repayments?
Should I get a fixed or variable rate?
How long should I fix for on a buy to let mortgage?
How many buy to let mortgages can I have?
Talk to an expert
Have all the facts and figures you need to purchase or remortgage your home? Our experts will make the whole process easier for you! Give us a call or choose a convenient time for us to call you. Drop us an email or chat with a human on our live chat.