Top tips for buy to let mortgages

A buy to let property can be a wise way to invest, but there is a multitude of buy to let mortgage options available as well as some risks. Although the process of applying can be similar to any home loan, the following advice will help you consider the essential factors and pitfalls before you move into the rental market.

Why buy to let?

It helps to consider the reasons you want to purchase a rental property or apply for a buy to let mortgage. Perhaps you believe it is the safest way to invest your money for the long term. Or maybe you would like a second income from the rent. By establishing your motivation for a buy to let home you can make the best decision when it comes to how much you borrow, how long you need it for and how much risk you are willing to take.

Do your homework before you buy

Any buy to let mortgage lender will want to know details of the property and area in which you want to purchase. This is because their repayments can in some cases be solely dependent on the rental income from your tenants, so it’s vital you choose somewhere with a stable rental market. If you don’t know the area well, visit some estate agents to learn more about the demand for rented accommodation and find out how much you can expect to receive on a monthly basis.

Work out the finances

When you apply for any mortgage, a bank or lender will have particular criteria they use to assess whether or not you can afford the home loan. For buy to let mortgages, this will usually include:

  • Estimated or potential rental income you can expect to receive
  • Your income and any income of a joint-borrower
  • The value of the property
  • Household expenses and costs such as maintenance charges

You may also have to provide information about your savings, insurance or reserve funds, so that you can prove you are able to cover unexpected damage or maintenance costs.

For a buy to let property, it’s especially important to consider how you will pay your mortgage during periods when the property is empty. What if your tenant can no longer pay their rent? Or your property is empty for a long period of time after someone moves out? Mortgage payments must still be paid to your lender, so it’s crucial that you have a plan in place to cover this.

Review a number of mortgage options

If you are planning to rent out a property to tenants, you must have a buy to let mortgage. But knowing which is the most suitable loan for you can take time and lots of research. At Private Wealth Mortgages, we can help you find the options that fit your personal circumstances and goals. This will ensure you have a number of choices and can select the mortgage that is best for you. To get started, you can use our online mortgage calculator, which will give you an idea of how much you could borrow and what the interest rates would be. For a full assessment of what you could afford and the lenders that could give you a buy to let mortgage, call us on 01403 270006.

Be prepared

Applications for any mortgage can be time-consuming, stressful and complicated. For buy to let mortgages, the review process can be even more thorough. One of the best ways to plan for any mortgage application is to gather the information and financial figures required as soon as possible. Your mortgage broker will be able to tell you what details are required, and these will often include bank statements, credit card bills or balances, as well as the household expenses and outgoings you incur. Although we can manage a lot of the administration that comes with your mortgage application, we rely on clients to provide us with the paper work and accurate financial information that can achieve the best result. For that reason, we recommend you begin collating and organising the facts and figures you will need at the earliest opportunity.


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Private Wealth Mortgages Ltd is authorised and regulated by the Financial Conduct Authority. FCA Number: 445980

Private Wealth Mortgages Ltd, Hillreed House, 54 Queen St, Horsham, West Sussex, RH13 5AD

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