What is a buy-to-let mortgage?

A buy-to-let mortgage is a mortgage agreement where the purpose of owning the property is to let to tenants to gain additional income or profits. While you will probably be taking out a second mortgage, your repayments will be covered by rent paid by your tenants. They are a great option if you are looking to expand your revenue streams or expand your property portfolio.

There is a lot to consider when you decide to become a landlord, especially if it is your first time. The Mortgage Genie can help by walking you through the process from beginning to end so all of the angles are covered.

Is a buy-to-let mortgage like a standard mortgage?

Is a buy-to-let mortgage like a standard mortgage?

Like a standard mortgage, the debt you take on is secured against the property. However, a buy-to-let mortgage rate is mainly assessed on rental income, as well as your own finances.

Your mortgage will probably be the largest ongoing cost of your property, so getting the right deal is going to impact the performance of your investment.

One of the best ways to secure a good rate is to seek the advice of an expert buy-to-let mortgage broker. Here at The Mortgage Genie, our specialists can work with you to find the product that will benefit your portfolio the most, delivering the best return on your investment.

Other differences between a buy-to-let mortgage and a standard mortgage include:

  • Interest rates – The interest rates for a buy-to-let mortgage vary from residential mortgages. But generally, they tend to be higher.
  • Deposit – The deposit needed for a buy-to-let mortgage is typically higher than for a normal residential mortgage — usually the minimum deposit required is 20% of the property value.
  • Arrangement fees – Arrangement fees for a buy-to-let mortgage can be higher than on a residential loan.
How can we help you secure the best buy-to-let mortgage?

How can we help you secure the best buy-to-let mortgage?

Whether you are a property professional or a first-time landlord, The Mortgage Genie can offer practical, straightforward buy-to-let mortgage advice. These are just some of the benefits of working with us:

  • We have access to a comprehensive panel of buy-to-let mortgage products from the largest to the smallest lenders, including those that offer more specialist packages.
  • Our team will take the time to understand your needs and find a selection of products that match them, ensuring you get the very best return on your investment.
  • By letting us do the hard work, your search for the right mortgage product will be quick and easy. You can then concentrate on the other aspects of your new property.

Take a look at our mortgage finder tool to discover some of the buy-to-let deals we can help to arrange. You’ll find out rates, fees, and repayments clearly set out to assist in making the right decision.

Who should seek advice for a buy-to-let mortgage?

Who should seek advice for a buy-to-let mortgage?

At The Mortgage Genie, we provide advice on buy-to-let mortgages for a diverse range of clients, including:

  • Property developers
  • Consumers
  • Limited companies
  • HMO (House of Multiple Occupancy)
  • First-time landlords
  • Holiday homes
Are buy-to-let mortgages the only option?

Are buy-to-let mortgages the only option?

There is an alternative option to applying for a buy-to-let mortgage: remortgaging your existing property. By doing so, it’s possible to release equity you’ve saved up to finance the purchase of your new property.

However, to do this you will need to be able to meet lenders’ underwriting requirements. It’s also worth remembering that the rental income of the buy-to-let property will not be taken into account in any remortgaging deal.

Before making a decision on whether you want to take out a buy-to-let mortgage or remortgage a current property, it’s always best to take quality financial advice. The Mortgage Genie will be happy to help with valuable advice from our expert team.

We can also help with essential insurance if you need to take out any for your application, including mortgage protection, life, critical illness, and income protection insurance.