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Buy-To-Let Mortgage

Buy-To-Let Mortgage Options – Invest Smarter, Grow Your Property Portfolio.

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Buy-to-Let Mortgages Made Simple

Buy-to-Let Mortgage a miniature house with a for rent sign outside

Thinking about your first buy-to-let property or expanding your portfolio? We’re here to help. The buy-to-let mortgage market has changed significantly in recent years due to tax updates, new lender requirements, and evolving legislation. It’s not as straightforward as it once was, which is why expert guidance is essential. That’s where we come in!

How Much Deposit Do I Need For A Buy-To-Let Mortgage?

Your deposit depends largely on the expected rental income. While some lenders may accept as little as 20%, most apply a stress test to ensure rental income covers the mortgage. In reality, a 25% deposit is more common and achievable for most investment properties, especially those with strong rental yields.

Repayment vs. Interest-Only Buy-to-Let Mortgages

If you plan to own just one rental property, you may prefer a repayment mortgage to clear the loan before retirement. However, most landlords with multiple properties choose interest-only mortgages to keep costs lower and maximise cash flow. Some lenders have no maximum age limits, allowing you to hold your mortgage well into retirement.

How Much Income Do You Need?

Most lenders require a minimum annual income of £25,000 for a buy-to-let mortgage. However, some will lend to applicants with lower incomes, including retirees or those whose only earnings come from rental properties.

Am I Too Old for a Buy-to-Let Mortgage?

Age is less of a barrier than you might think. Many lenders offer buy-to-let mortgages well beyond retirement age, as long as the rental income meets their affordability criteria.

At Harbour Mortgage Solutions, we simplify the process and find the right mortgage to suit your investment goals.

Get in touch today for expert advice: Just fill out the contact form below and we’ll get right back to you.

Buy-to-Let mortgage a house with a to let sign outside

Frequently Asked Questions

Do I need a secific type of mortgage for a rental property?

Yes, if you are buying a property to rent out, you’ll need a buy-to-let mortgage. These differ from residential mortgages in terms of interest rates, deposit requirements, and affordability criteria. Why not chat to one of our friendly team members who can help you choose the right deal?

No, a buy-to-let mortgage is specifically designed for properties that are rented out, not lived in by the owner. If you plan to live in the property yourself, even temporarily, you’ll need to speak to your lender first. In most cases, you’ll either need their permission (known as “consent to occupy”) or you may need to switch to a residential mortgage.
Living in the property without the right mortgage in place could breach your mortgage terms, so why not get in touch with us for some advice before making any changes.

Lenders usually assess affordability based on the expected rental income of the property rather than your personal income. That said, some lenders may still look at your earnings, especially if you’re a first-time landlord.

Not at all. Many landlords have full-time jobs and invest in property on the side. Whether you’re new to letting or growing a portfolio, our friendly mortgage advisors in Barry can guide you through the process and help you access deals that match your situation.

You’re still responsible for making your monthly payments, even if there’s no rental income. It’s wise to plan for void periods, and a mortgage advisor, like ourselves, can help you budget appropriately or explore protection options.

You’ll need to pay income tax on your rental profits, and there may be capital gains tax if you sell the property later. It’s also worth noting that mortgage interest tax relief has changed in recent years, so speaking to a tax adviser is always a good idea. You can find more information here on the government’s website.