Where specialist lenders help
- Limited company and SPV borrowing.
- HMOs and student lets, where the rent is higher but so are the rules.
- Multi-unit freehold blocks, valued and lent on as one property.
- Portfolio landlords with four or more mortgaged properties.
- Refinancing off a bridging loan once a refurbishment is finished.
- Holiday lets, overseas borrowers and first-time landlords.
How much you can borrow
Buy-to-let lenders look at two limits and lend the lower one. The first is the loan to value, typically up to 75%. The second is rent cover: the rent must cover the mortgage interest by a set margin, often 125% to 145%, worked out at a “stress” rate rather than your actual rate. Higher-rate taxpayers borrowing personally usually face the higher cover. Limited companies often get the lower figure. Some lenders allow “top-slicing”, using your other income to make up a shortfall.
Our buy-to-let calculator works out both limits, the monthly payment and cash flow, yield, and Stamp Duty Land Tax (England) or Land Transaction Tax (Wales), including the higher rates for additional properties.
Typical rates
| 5-year fix, up to 60% LTV | 4.40% to 5.00% a year |
|---|---|
| 5-year fix, 60% to 75% LTV | 4.60% to 5.50% a year |
| 5-year fix, above 75% LTV | 5.20% to 6.00% a year |
| 2-year fix, up to 60% LTV | 3.60% to 4.40% a year |
|---|---|
| 2-year fix, 60% to 75% LTV | 3.90% to 4.90% a year |
| 2-year fix, above 75% LTV | 4.30% to 5.30% a year |
HMOs and multi-unit blocks usually cost a little more. Lender arrangement fees vary from a flat fee to a percentage of the loan, and can change the best choice.
How we help
- See what you could borrow in the free calculator. No credit check and no obligation.
- Tell us about the property and your portfolio in a two-minute form.
- We pick a broker or lender who does that kind of deal well.
- We introduce you, with the details explained, and stay on hand if you need us.
Your property may be repossessed if you do not keep up repayments on your mortgage. Buy-to-let mortgages for investment are not usually regulated. If you are letting a home you used to live in, or a family member will live there, different rules apply and we will only introduce you to a firm authorised by the Financial Conduct Authority.