What is a buy-to-let mortgage?

It is a mortgage secured against a property which is for investment rather than somewhere to live. A traditional residential mortgage is not available for this type of arrangement. This is because there are different risks associated with buying a property to let out to tenants. In most cases, fees and rates are higher, as they are seen as riskier than residential mortgages.

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Helping You Navigate Your Buy-to-Let Journey

Working with our friendly team gives you access to numerous buy-to-let mortgages, offering advice and rates to maximise the potential of your property investment.

Our team of professional mortgage experts have many years experience operating in Berkshire and all surrounding counties and are well placed to offer you advice on mortgage rates.

We realise that becoming a private landlord can be a challenge, with different financial responsibilities and legal implications. We want to ensure your investment runs as smoothly as possible.

**Not all buy to Let Mortgages are regulated by The Financial Conduct Authority.

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We used Beechwood Mortgages for our first house purchase and we couldn’t recommend Adrian (and Sam!) enough. He made everything so easy for us and took the time to explain things carefully so we understood what the process was from start to finish.
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The Benefits Of Our Services

How Our Buy-To-Let Services Help You

It can be daunting if you're looking to buy a home to rent out for the first time. You'll be faced with new financial responsibilities and legal complexities.

However, working with our dedicated team will help you consider the key differences. Some things to consider include:

Fees and interest rates are often higher than residential deals.
Cash reserves are important in case of major repair work or repairs.
Larger deposits are required by lenders.
If a property is unoccupied, you still need to meet your mortgage payments.

As the full mortgage amount is often paid back at the end of an agreed term it is important for you to try and avoid relying on selling your investment home to pay off this debt.

If house prices fall you may find that you'll be left to make up any financial difference on the mortgage using a different source of capital.

Save Money and Access The Best Rates

Buy-to-let mortgage experts not only provide you with great value for money but also help you make sure you have the right mortgage to suit you.

If a mortgage deal doesn’t work for you, remember that leaving before the end of the agreed term can lead to early repayment charges from lenders.

There are also higher fees and generally higher interest rates on these types of mortgage deals. We can provide impartial advice and help you find the best deal to suit your individual needs.

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Frequently Asked Questions (FAQ's)

In some ways, they're just like residential mortgages. You'll need to pay a percentage of the price as an upfront deposit in order to secure the best mortgage deal available. As your deposit increases, mortgage deals then become more competitive.

Your credit history may also influence the deals offered to you. The amount borrowed also depends on the anticipated rental income. So lots to consider, hence why it’s important to seek help in finding the best solution for you.

Typically, you'll need a bigger deposit than a residential mortgage deal. Deposits are usually around 25% of the property’s value but some lenders may ask for as much as 40%. Lenders generally rely on the rental income to determine the amount of deposit required.

A larger deposit is required because lenders see this sort of investment as a bigger risk. Requesting a larger sum in advance is regarded by banks and building societies as a way to protect themselves against any payment defaults.

Usually, these issues stem from problems with collecting rent from tenants. As with residential mortgages, a larger the deposit will generally result in a better deal being offered to you.

Switching a residential mortgage to buy-to-let will require consent from your lender. If your lender refuses to give this consent, you should investigate the option of re-mortgaging with a different bank or building society. Leaving a mortgage deal before the end of the agreed term can also lead to early repayment charges. There are also higher fees and potentially higher interest rates on such deals.

In the majority of cases, buy-to-let mortgages are not regulated by the Financial Conduct Authority (FCA) or the Financial Services Compensation Scheme (FSCS).

These deals are viewed as business transactions by regulatory bodies. As the investor will not be living in the property the FCA and FSCS are not responsible for their regulation. Residential mortgages are covered by these two organisations.

However, there are exceptions to this rule. If a landlord wants to rent their property to a close family member or relative these are covered by the FCA and FSCS. Any advise, arranging or lending in these scenarios are administered in the same way as residential mortgages.

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