Buy-to-let Mortgages

Investing in properties to rent out is a very popular form of creating a secondary income stream and planning for a comfortable retirement. If you require a buy-to-let mortgage, our qualified advisers will offer proactive and hands-on guidance.

Our role as advisers is to reduce the number of issues that clients have to deal with themselves, if you are considering this as an investment option we can help with the process and to navigate the potential for your investment plan.

What is a buy-to-let mortgage?

Buy-to-let mortgages are for landlords who want to purchase properties that they can then let out to tenants, rather than living in them personally. This type of mortgage is available on houses and flats, allowing you to shape your property portfolio according to your unique needs and goals.

How do I get a buy-to-let mortgage?

Certain criteria need to apply when taking out a buy-to-let mortgage, such as:

  • You can’t afford to buy a home on the open market.
  • You understand the risks of investing in property and can afford to do so.
  • Typically you will be a residential home owner.
  • You’re under 70 (or in some cases 75), as many lenders have upper age limits for mortgages.

Types of buy to let mortgages

There are several factors that affect the type of buy-to-let mortgage you might consider, including your budget, risk tolerance, and investment goals. Here’s a breakdown of some common types:

By Interest Payment:
  • Interest-only: This is the most common type, where you only pay the interest on the loan each month. The capital amount remains unchanged until you sell the property. This can be attractive for maximising rental yield, but remember, you’ll still owe the original loan amount.
  • Repayment: With this option, your monthly payments cover both the interest and a portion of the capital, gradually reducing the outstanding loan amount. This offers security as you build equity in the property, but your monthly payments will be higher.
By Interest Rate:
  • Fixed-rate: This locks in your interest rate for a set period, usually 2-5 years, providing predictability and budgeting stability. However, fixed rates are typically higher than variable rates.
  • Variable-rate: These rates fluctuate based on an underlying index, like the Bank of England base rate. They can be cheaper than fixed rates initially, but carry the risk of rising rates increasing your payments. There are variations like capped-rate mortgages, which limit potential rate increases, and discounted-rate mortgages, offering a temporary discount below the lender’s standard variable rate.
Specialist products for buy to let mortgages
  • Buy-to-let only lenders: These lenders specialise in buy-to-let mortgages and may offer more competitive rates and flexible terms compared to high-street banks.
  • Specialist mortgages: You may find options for specific property types, like flats, houses in multiple occupation (HMOs), or multi-unit buildings.
  • Portfolio buy-to-let mortgages: If you already own a buy-to-let property and want to expand your portfolio, these mortgages allow you to purchase additional properties under the same agreement.
What is a lifetime mortgage and could it be an option for you?

Important factors to bear in mind

  • Buy-to-let mortgages typically require a larger deposit than residential mortgages, often 25% or more.
  • Rental income must be sufficient to cover mortgage payments, property expenses, and potential voids (vacancy periods).
  • Tax implications for buy-to-let investments differ from residential properties
  • The fees and interest rates are usually higher.
  • Many buy-to-let mortgages are not regulated by the Financial Conduct Authority.
  • The maximum amount you can borrow depends on the amount of rental income you expect to receive.

Remember, this is just a general overview, and the best type of buy-to-let mortgage for you will depend on your individual circumstances.  Our mortgage team can access the whole of the market to make the process smoother and more efficient.


Your home may be reprocessed if you do not keep up repayments on your mortgage.

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Financial advisory in Worcestershire and Kent

Based in Droitwich Spa, we’ve proudly supported clients of all ages since 2004. The opening of our second office in Sevenoaks allowed us to extend our bespoke financial services even further, making SN Financial a trusted financial adviser for individuals, couples, families and businesses across Worcestershire, Kent and the rest of the UK.

Droitwich Office

5 Saltway, Droitwich, Worcestershire, WR9 8LB
01905 779697

Sevenoaks Office

46 Holly Bush Lane, Sevenoaks, Kent, TN13 3TL
01732 926255