One of the most common forms of mortgages available on the market, we can help you find the most suitable buy to let mortgage here at Mortgage2day.co.uk. Whatever your situation, our qualified mortgage advisors are always on hand to help.

What is a buy to let mortgage?

A buy to let mortgage or BTL mortgage is a product whereby the applicant obtains a mortgage for a property which they intend to rent to other people. For this reason, the product may sometimes be referred to as a landlord mortgage. The applicant will not live in the mortgaged property, nor will it be their primary residence.

How does a buy to let mortgage differ from a let to buy mortgage?

Buy to let mortgages should not be confused with let to buy mortgages (LTB mortgages) which are a completely different product. A let to buy mortgage is where an individual obtains a mortgage for a new property by renting their existing home. Unlike a buy to let mortgage, the property which is mortgaged in a let to buy mortgage will be the applicants primary form of residence and the home in which they live.

How does a buy to let mortgage work?

Essentially, buy to let mortgages operate in the same way to a standard mortgage. The only real defining feature is that the mortgaged property is not the house in which you live, but rather an investment property. However, the calculation for the income multiple will differ slightly and this will affect the amount of money you are lent. With a traditional mortgage, the income multiple is determined by your salary. With a buy to let mortgage this is determined by your estimated annual rental income instead.

Most applicants will aim to receive more rent than is needed to cover their mortgage.

What interest rates are charged with a buy to let mortgage?

As with other types of mortgage, buy to let mortgages are offered by many different lenders. These come in numerous forms with fixed rate, variable rate, base rate tracker, LIBOR trackers, capped and discounted rates all examples.

Fixed rate mortgages will retain the same interest rate for a set period of time. This is usually a two, three or five year period and may or may not cover the entire term of the mortgage itself.

Variable rate mortgages your monthly payments can go and update depending on the terms of the mortgage. There are three types of variable rates – tracker rate mortgages, discount rate mortgages and standard variable rate mortgages set by the lender. Many offer an introductory rate. The changes to the interest rate will be based on market indicators and could see the interest become greater or lower than the initial rate.

When choosing a mortgage it is important that you understand the interest rates which are associated with it. The easiest way to do this is to speak to a qualified mortgage advisor, such as those employed at Mortgage2day.co.uk. Our team of qualified professionals are always on hand to help and will discuss all of the different mortgage options which are available to you.

How can I get a buy to let mortgage?

Whether you are interested in a buy to let mortgage, a standard mortgage or a let to buy mortgage, you will be able to find what you need at Mortgage2day.co.uk. Our team of qualified advisors are always on hand to help and will offer whole of market mortgage advice on which type of mortgage is most suitable for you.

Mortgage applications can be a difficult process to manage, especially if you are new to the property market. Seeking guidance and help from professionals is therefore highly recommended and will make this process far easier to manage.

A property is the biggest asset which you are likely to own during your lifetime and this is why it is important that you seek the help of a purchase solicitor when buying a home and obtaining a mortgage. Speak to our advisors and we will be able to arrange this for you to ensure the whole process to stress free for you.

You may also want to consider protecting your investment with mortgage protection or insurance – something which our advisors can help you with.