Whether you’re looking to grow your property portfolio or acquire your first landlord property, Cowens can help you find the perfect mortgage solution.
Buy to Let Mortgages in Nottingham & Mansfield
A Buy to Let mortgage is a loan designed for people who want to buy a property and rent it out rather than live in it themselves.
Finding the right buy-to-let deal is really important to ensure that you make the most of your investment and, as a property investor, you want to spend your time finding the right properties and then capitalising, not scouring the market for the right mortgage. Let us absorb that hassle and make the process as easy as possible. Our independent status gives us access to a vast range of mortgage products to meet your borrowing requirements.
Usually (though not always) a Buy to Let mortgage is set up on an interest-only basis, with monthly payments being met by the rental income received and the remaining mortgage paid off when the property is sold. However they can also be secured as a repayment mortgage depending on your long term preference and repayment goals. Your Cowens adviser will be happy to discuss all the options.
If you rent out a property on which you only have a residential mortgage, unless you have applied for special conditions from your lender, you could be in breach of your mortgage agreement which could put your property at risk of repossession.
The Financial Conduct Authority does not regulate some types of Buy to Let.
Can I get a Buy to Let mortgage?
There are a few extra things to consider when looking at obtaining a buy to let mortgage –
- Some lenders prefer previous landlord experience though others are open to first-time landlords (everyone has to start somewhere!)
- Some lenders have a minimum income requirement and some lenders have a minimum age requirement
- The rental income from the property will be factored in to work out your borrowing and product options
- The lender will need to understand the tenancy agreement you would have in place for the property
- Generally for a buy to let property most lenders ask for a 25% deposit, however there are some lenders who accept 20%
With access to so many lenders we can ordinarily find options for all types of application so, even if you don’t fit all these criteria, do speak to a Cowens adviser to see how we might help.
What’s different about a Buy to Let mortgage
As well as the stricter acceptance criteria a Buy to Let mortgage usually incurs higher arrangement fees and requires a higher deposit of (ordinarily) 25%. Mortgage interest rates are usually higher due to the increased risk to lenders but, since most Buy to Let mortgages are interest-only, the monthly repayments should be manageable.
It is important to remember that the property may not be occupied throughout the whole of the mortgage term. Lenders may wish to know how you will make repayments during periods when the property is vacant, though some protection policies cover the property for periods without rental income.
Your buy to let property may be repossessed if you do not keep up repayments on your mortgage.
Get in touch with a friendly, expert Cowens adviser to find out more
Frequently Asked Questions
How does a Buy to Let mortgage work?
Most Buy to Let mortgages are set up on an interest-only basis, meaning monthly payments are typically covered by rental income, and the remaining mortgage is repaid when the property is sold. Some Buy to Let mortgages can also be arranged as repayment mortgages, depending on your long-term goals.
Can I get a Buy to Let mortgage if I’m a first-time landlord?
Yes. While some lenders prefer applicants with previous landlord experience, many offer options for first-time landlords. Cowens advisers can help identify lenders suitable for your circumstances.
What costs should I budget for when getting a Buy to Let mortgage?
In addition to your deposit, you should budget for arrangement fees, valuation fees, legal costs, stamp duty (including the additional property surcharge), and ongoing landlord expenses like maintenance and insurance.
Do I need landlord insurance with a Buy to Let mortgage?
Most lenders will require you to have suitable landlord insurance in place before you rent out the property. This typically covers buildings, contents, and liability.
Why use a mortgage broker for a Buy to Let mortgage?
As independent brokers, Cowens has access to a wide range of Buy to Let mortgage products, including many not available on the high street. An adviser can help you find a suitable deal, simplify the application process, and save time.
How does a Buy to Let mortgage work?
Most Buy to Let mortgages are set up on an interest-only basis, meaning monthly payments are typically covered by rental income, and the remaining mortgage is repaid when the property is sold. Some Buy to Let mortgages can also be arranged as repayment mortgages, depending on your long-term goals.
Can I get a Buy to Let mortgage if I’m a first-time landlord?
Yes. While some lenders prefer applicants with previous landlord experience, many offer options for first-time landlords. Cowens advisers can help identify lenders suitable for your circumstances.
What costs should I budget for when getting a Buy to Let mortgage?
In addition to your deposit, you should budget for arrangement fees, valuation fees, legal costs, stamp duty (including the additional property surcharge), and ongoing landlord expenses like maintenance and insurance.
Do I need landlord insurance with a Buy to Let mortgage?
Most lenders will require you to have suitable landlord insurance in place before you rent out the property. This typically covers buildings, contents, and liability.
Why use a mortgage broker for a Buy to Let mortgage?
As independent brokers, Cowens has access to a wide range of Buy to Let mortgage products, including many not available on the high street. An adviser can help you find a suitable deal, simplify the application process, and save time.