Buy-to-let mortgage
For the accidental landlord, serial investor, first-time buyer and portfolio-builder, we can find the right buy-to-let mortgage deals.
Buy-to-let mortgages, for everyone
Becoming a landlord is an exciting venture, whether you’ve fallen into it as a matter of circumstance, or you’ve been dreaming of building a long-term career. So, whether you’re a first-timer or a landlord looking to power up your existing portfolio, we can help you find the right buy-to-let mortgage. As mortgage experts with access to many deals, you can get clear about your mortgage options.
Why Purplebricks Mortgages?
There are many ways we can help – and many reasons to work with us.
Access to hundreds of deals with many lenders. Plus some exclusive ones.
Suitable for first-time landlords, established property moguls and everyone else in between.
Advisors who know the market from back to front – we know how to spot a good deal.
Advisors who are with you every step of the way, answering questions and tracking your application. We’re even on hand after completion.
We work with a wide range of providers, including specialist buy-to-let lenders.
Find your buy-to-let mortgage
Get in touch with a real-life, human mortgage advisor, ready to help you on your buy-to-let mortgage journey. We gather a few details, then get to work.
Once we know your needs, we'll hunt for the right buy-to-let mortgage deal that suits you. We'll walk you through your options, offering honest advice.
Let's lock in your deal! Sit back, relax, and we'll take care of the finer details.
Important information
Your property may be repossessed if you do not keep up repayments on your mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice.
The fee is up to 1% but a typical fee is £299.
Find my buy-to-let mortgage
Ready to lock in your buy-to-let mortgage deal that suits you? Our advisors are here to help. Simply request a callback and we'll take it from there.
Your buy-to-let questions, answered
A buy-to-let mortgage is a mortgage on a property that you plan to rent out. It’s a loan specifically for landlords.
You can get a buy-to-let mortgage on:
a property that you plan to buy
a property you already own and want to turn into a rental (such as a property you’ve inherited)
or on a property you want to rent out as a holiday let.
A buy-to-let mortgage works the same as any other mortgage: you put down a deposit, borrow the rest of the money from a lender, then repay it over a set term.
Take a look at the different types of buy-to-let mortgages you may be able to choose from.
A buy-to-let mortgage is a specific type of mortgage for when you buy a property to rent out to tenants (instead of somewhere to live for yourself). If you plan to rent out your property to a single or multiple tenants, you’ll need a buy-to-let mortgage.
If you currently live in a house that you want to convert into a rental property, be sure to talk to your mortgage lender first. Most will require you to switch your residential mortgage to a buy-to-let mortgage.
There are a few differences between buy-to-let mortgages and residential mortgages:
Buy-to-let mortgages tend to have higher interest rates than residential ones, as lenders can view them as riskier.
Buy-to-let mortgages require a higher deposit – typically 25% of the property’s value.
The loan calculation for buy-to-lets tend to be based on the rental yield rather than personal affordability and credit score (although those factors may be considered too).
Many buy-to-let mortgages are interest-only. That means that you pay the interest every month, but not the actual loan amount (the capital). At the end of the mortgage term, you end up repaying the original loan in full. However, some mortgages can be on a repayment basis, so talk to your mortgage advisor about which is right for you.
If you’re planning to step into the landlord world, there will be some additional fees to consider along with the mortgage.
Some of these include:
Stamp duty, surveyor fees, and other costs of buying
Tax on rental income
Building insurance
Landlord insurance
Letting agent fees (if you choose to use an agency)
Maintenance and repairs on the property
Keep in mind that landlords need to stay up to date with the latest regulations and responsibilities. Failing to do so could cost. For support on your venture, use lettings agents who know the latest up-to-the-minute legislation. Purplebricks offers a wide variety of lettings services.
In an interest-only buy-to-let mortgage, you only pay interest each month. At the end of your mortgage term, you’ll need to repay the full value of your mortgage. At this time, you may be able to extend your mortgage, or you may decide to sell the property.
We hate to rain on your parade, but first-time buyers may find it challenging to take out a buy-to-let mortgage. Many mortgage providers want to see that you own at least one home already. That said, some lenders may accept first-time buyers who put themselves in a strong position.
If you’re a first-time buyer, we recommend working with a professional mortgage advisor. They’ll be able to give you sage advice, direct you with confidence and find the right mortgage offers based on your needs. If you’re in the market for professional mortgage advice, we can help with that.
Generally, you’ll need a bigger deposit for a buy-to-let mortgage than you would with a standard residential mortgage. Most lenders will require at least 25% of the property’s value as a deposit.
As with a residential mortgage, the larger the deposit, the better your interest rate will be.
When buying an investment property with a mortgage, the lender will pay close attention to the potential return on the investment. That means that they base the loan size on the potential rental income (the rental yield) that the property could make.
Many lenders want the rental income to cover your mortgage repayments, plus 25% to 45% to cover the additional costs (taxes, maintenance, insurance, etc.). All of that means that the property you want to buy has to have the potential to generate plenty of income.
Absolutely. It’s more common than you think - especially when someone moves out of their property but wants to keep it (rather than sell it) to rent it out.
As a reminder, remortgaging is when you replace your existing mortgage with a new one. If you’re thinking of renting out your current home, you’ll need to switch your residential mortgage to a buy-to-let one. Check with your lender first – some lenders may have a ‘consent to let’ on residential mortgages (meaning you won’t have to remortgage), while others might insist you switch to a buy-to-let mortgage.
Purplebricks Mortgages Limited is an appointed representative of Mortgage Advice Bureau (Derby) Limited which is authorised and regulated by the Financial Conduct Authority. Purplebricks Mortgages Limited. Registered Office: 146 Freston Road, London, W10 6TR. Registered in England Number: 11952059.