We go into detail about buy to let mortgages in our what is a buy to let mortgage guide. Use it to fully understand buy to let mortgages, as well as what buy to let mortgage rates you can expect.

In general, however, a buy to let mortgage (otherwise known as a BTL mortgage) is a special type of mortgage for landlords. You may wonder how much you can borrow to buy a rental property, which is why we put together the how much can I borrow buy to let mortgage guide.

With it, you can buy a property you intend to immediately rent out. If you own a property already and want to rent it out, you’ll need to swap it for a buy to let mortgage.

Read our how does a buy to let mortgage work guide for in-depth information on the buy to let process. Essentially, they cover the cost of a rental property and are used by landlords to grow their rental portfolio.

We’ve outlined the full process in our how to get a buy to let mortgage guide. For now, just know that you will want to start with buy to let mortgage brokers. We can help you understand your options and what buy to let mortgage rates you can expect for your specific situation.

You will also need:

• A deposit: for buy to let mortgages, the deposit is typically 25% of the property’s value. If you already own the home, this doesn’t apply.
• To pass the affordability test: You will still need to pass the affordability test. Rental income may be factored in, but it is not the only element lenders consider.
• A good credit score: You’ll need a great credit history for lenders to give you the best buy to let mortgage rates.
• A property valuation: Get your property valued. You’ll also want an estate agent to provide you with a rental income estimation to include with your application.

Thankfully, your buy to let mortgage broker can help guide you through all the steps necessary and collect the best options for you so you can choose the lowest buy to let mortgage interest rate available for you.

You also benefit from having a dedicated buy to let mortgage advisor who can help advise you on how to improve your mortgage

Are buy to let mortgages more expensive than residential mortgages? Yes, since you’re earning an income from it. Lenders typically offer buy to lets with higher interest rates. Using a mortgage broker buy to let specialist can help you secure the best buy to let mortgage rates, yes, but those rates will still tend to be higher than personal mortgages.

On top of higher buy to let mortgage rates (even with the help of buy to let mortgage brokers), you’ll also need to factor in other costs like landlord insurance, property management, tax implications, and market fluctuations. If you have a property in a densely populated area like London, you may have an easier time securing the loan so long as you can cover the deposit.