Buy to let mortgages
Looking for buy to let? Buying a property to rent out could be worthwhile in the longer term, but it's not risk free.
We'll talk to you about the buy to let mortgages we offer and make sure you've all the information you need before you take the next steps or make any decision on purchasing a rental property.
We've kept things simple, only offering deals which are self financing which means the income you generate from the property has to cover the mortgage repayments. It's wise to make sure the rent also covers insurance charges and the general repair and upkeep of the property now and in the future.
We can only give you information about our range of mortgages. We can't help you decide if buy to let is right for you as a longer-term investment.
Start your application online and we'll confirm whether we're able to proceed with your buy to let mortgage.
Call us on 08458 50 37 05
Mon-Fri 8am - 8pm Sat 9am - 4pm
Come into branch - you'll need to book an appointment beforehand
FAQs
What is a buy to let mortgage?
I'm a first time buyer, can I apply for a buy to let mortgage?
How much could I borrow?
What is the lending criteria for a buy to let mortgage?
What are the risks I should be aware of?
What buy to let mortgage deals are available?
Will I be charged any fees?
What should I consider when choosing which property to buy?
What is a buy to let mortgage?
A buy to let mortgage is a loan you can take out to buy a property that you intend to rent out to tenants.
I'm a first time buyer, can I apply for a buy to let mortgage?
No, these products are not available to first time buyers. Taking out a mortgage is one of the many risks of investing in buy to let properties. So before you enter the market you should be an experienced house buyer and have fully researched investment properties.
The most you could borrow is linked to the amount of rental income our surveyor thinks you could earn. The annual rental income must equate to a minimum of 125% of the annual (interest only) mortgage payments based on the higher of a 5% interest rate or the initial rate for the mortgage deal.
What is the lending criteria for a buy to let mortgage?
| Lending Criteria | |
| Age | You must be at least 18 years old and not over 75 years at the end of your mortgage term. |
| Deposit | Minimum 25% (property value or purchase price, if lower). |
| Maximum lending | You can borrow up to £2 million from Lloyds Banking Group across a maximum of three buy to let mortgages. The maximum loan size on a single buy to let property is £1 million. |
What are the risks I should be aware of?
Buy to let mortgages are secured against the rental property, so it's important that you keep up your repayments. If you don't keep up your repayments there is the risk that your rental property could be repossessed.
What buy to let mortgage deals are available?
Our current mortgage deals are based on how much mortgage you need in relation to how much your property is worth. This is known as your loan to value (LTV) and it's expressed as a percentage figure. If you check all our current rates there'll only be certain mortgages which fit your loan to value band.
You may be charged a mortgage account fee which is an interest-free fee charged on new mortgage completions. Depending on the mortgage product, there may be a product fee to pay. You'll need to check our current rates for full details. Any product fees can be added on to your mortgage on completion. There could be other charges and standard costs which you may have to pay during the life of your mortgage. You'll be charged interest on any fees, charges and standard costs added to your loan.
What should I consider when choosing which property to buy?
Tenants - think carefully about the type of tenant you want to attract e.g. young professionals, families or sharers. Considering this may help you to decide on the type of property you purchase and its location. The property should be let on a single assured shorthold tenancy (in England and Wales), a short assured tenancy (in Scotland) or a private tenancy (in Northern Ireland).
Location - do your research and visit lots of different areas. Location is an important consideration and will often determine the type of tenant you will let to. Don’t necessarily buy locally to your home. Think about prosperous towns which might attract a higher demand for rental property. Once you've chosen an area consider the locality, think about transport links, parking, shops, schools and other local facilities – pick the brains of letting agents for information about areas where properties may be easier to rent.
Condition of the property - if you're buying a property which needs improvements restrictions could be placed on the amount you can borrow and it could also delay how quickly you can let the property out. Can you afford the mortgage payments during the renovation period?
Rental income - do your homework, talk to local letting agents, check the local press to find out comparable rental values. The mortgage valuation will include an estimate of the rental income of the property on an unfurnished basis. But remember, there are no guarantees of what rental income you will get or if the property will rise in value over time.
Our current rates
These are our current fixed rate buy to let mortgages available today. There'll only be certain deals which fit your mortgage amount and your loan to value band.
New buy to let mortgages
| Term | Initial rate | Rate thereafter | For the remainder of the term from | The overall cost for comparison is | Product fee | Loan to value(LTV) | Early Repayment Charges until | Max loan |
|---|---|---|---|---|---|---|---|---|
| 2 years | 3.69% | A tracker rate (currently 4.84%) that tracks at +4.34% above the Bank of England Bank Rate | 31/05/2016 | 5.0% APR | £995 | 0-60% | 31/05/2016 | £1m |
| 2 years | 4.39% | A tracker rate (currently 4.84%) that tracks at +4.34% above the Bank of England Bank Rate | 31/05/2016 | 5.1% APR | £995 | 60-75% | 31/05/2016 | £1m |
Buy to let remortgages
| Term | Initial rate | Rate thereafter | For the remainder of the term from | The overall cost for comparison is | Product fee | Loan to value(LTV) | Early Repayment Charges until | Max loan |
|---|---|---|---|---|---|---|---|---|
| 2 years | 3.69% | A tracker rate (currently 4.84%) that tracks at +4.34% above the Bank of England Bank Rate |
31/05/2016 | 4.9% APR | £995 | 0-60% | 31/05/2016 | £1m |
| 2 years | 4.39% | A tracker rate (currently 4.84%) that tracks at +4.34% above the Bank of England Bank Rate |
31/05/2016 | 5.1% APR | £995 | 60-75% | 31/05/2016 | £1m |
The Bank of England Bank rate is currently 0.50%
Our rates are only guaranteed for applications made today. We reserve the right to change our product range at any time.
Ways to apply
You can start your application online, over the phone or in branch.
You'll need the following:
- Address details for the last 3 years
- Employment and income details for the last 18 months
- Any outstanding financial commitments
Applying online
This option is right for you if:
- You know how much you need to borrow
- You've all your details to hand
- You've time to complete the form - it'll take about 30 minutes
Once you've submitted your form, we'll confirm whether we’re able to proceed with your buy to let mortgage.
Applying by phone or in branch
This option is right for you if:
- You'd like to know how much we could lend you
- You want to talk through your options with a mortgage adviser before applying
To talk to a mortgage adviser and apply over the phone you'll need to call us on 08458 50 37 05. Lines are open Monday - Friday 8am to 8pm and Saturdays 9am to 4pm. We're closed on Sundays and Bank Holidays.
To talk to a mortgage adviser and apply in branch you'll need to book an appointment beforehand. You can either pop in to branch to make the appointment or you can book an appointment online and we'll call you back to confirm a day and time.
