There has never been a better time to apply for buy-to-let mortgage

9th March 2022

With a buy-to-let property sector that has seen rental demand grow to a 13-year high and an increase of 4.6% in average rents in the UK over the past year, according to Zoopla’s latest Rental Market Report, there has never been a better time for landlords thinking of investing in the buy-to-let market or adding to their investment portfolio.

There has also been great news when it comes to the number of buy-to-let mortgage products available to landlords with a small deposit or lower level of equity. If you can put down a 15% deposit, there are now almost 30 85% loan-to-value (LTV) buy-to-let products to choose from.

So, with perfect timing and reinvigorated confidence in the investment property market, we’ve got answers to the buy-to-let questions that are asked the most before you make your move to the next step with an application for a buy-to-let mortgage.

Do I qualify for a buy-to-let mortgage?

The borrowing criteria for a buy-to-let mortgage varies from lender to lender, traditionally you would have needed to show earnings of at least £25,000 that aren’t connected to property rental. However, there are now a number of lenders who do not have any income requirement, meaning you can purchase a buy to let property even if you’re not in employment. If you own your own home, that will also stand you in good stead for a buy-to-let mortgage. Whilst minimum deposits of about 25% of your proposed investment property value have traditionally been required by lenders, the increasing numbers of 85% buy-to-let mortgages are showing that the market is broadening.

Do I pay tax on rent from a buy-to-let property?

Yes, your rental income is subject to income tax – you should talk to your accountant about buy-to-let property income if this is to be your first foray into property investment.

Can I live in a property that has a buy-to-let mortgage?

Buy-to-let mortgages are for landlords only, which means you can’t live in your own buy-to-let home. If you want to live in the property, you’ll need to apply for a standard homeowner mortgage.

Can I convert a buy-to-let mortgage to a residential homeowner mortgage?

You should be able to switch your buy-to-let mortgage subject to meeting the new lender’s affordability criteria.

How do I apply for a buy-to-let mortgage?

You first step should be to talk to the experts in buy-to-let mortgages. We have access to the most competitive buy-to-let mortgage products that are currently available. Whether it’s your first buy-to-let investment or you’re expanding your investment property portfolio, the advisers at Charters Financial Services will find the right product to suit your purchase.

Need more information about buy-to-let mortgages?

Call Charters Financial Services on 03454 500200 to get your buy-to-let mortgage application off to the best start or, for more information read our expert guides here (https://www.chartersfinancialservices.co.uk/find-the-right-mortgage/buy-to-let-mortgages/expert-guides/).

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We have used Robert as our mortgage adviser twice now and have been in touch with him many times in between for help and guidance on other projects.

He is awesome! He is accommodating to our needs as a couple with a young child and is always transparent about his work. Robert is experienced, well-connected and seems to really love his job. I genuinely look forward to meeting Robert because he makes us feel at ease about our future plans and does everything he can to make our dreams a reality. We couldn’t recommend him more highly.

A lovely lovely guy with a brilliant sense of humour. Finally, a real person who you can talk to about mortgages in an open and honest way.

Hannah L

January 2020

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