Buy To Let Guide

Buying to let is both a potential source of income today and an investment for the future. If you find the right property and the right tenants, you could cover the property's mortgage payments and enjoy a regular income.

It may be best to think long term and have a clear idea of what you want from your Buy to Let investment. People buy to let for various reasons – having a monthly income, growing their capital, expanding their portfolio, providing security for their children.  Therefore, setting clear goals will help you manage the risks of buying to let.

1. Choose the right property: what type of property will appeal to your target tenant?  Research the market using local estate agents, newspapers, websites and local authorities.
2. Select a location: visit the area and talk to local people and businesses.  Check transport links, parks, shops and schools.  Choose a property and a location that will appeal to your target tenant, for example near a university or railway station.
3. Find tenants: know the type of tenant you’re looking for – student, professional, family.  Check tenants’ references and draw up a sound contract.
4. Manage the property: do you live close enough to deal with emergencies, or can you afford a letting agent?  Complete a full inventory of contents, furnishings and appliances.

As well as your mortgage payments, you’ll need to pay for property upkeep and maintenance and buildings insurance.  You’ll need to consider contents insurance if the property is furnished. You’ll also need to put money aside to cover your mortgage payments if the property is ever unoccupied.

If you’re using a letting agent, they usually charge to find a tenant and to manage the property.  Shop around to make sure you're getting a good deal.
There are also taxes to consider, including stamp duty, income tax and capital gains tax. A good accountant could help you save a lot of money by managing your tax in the most efficient way.

• Buy to Let mortgages are variable rate mortgages
• Borrow up to 75% of the purchase price or valuation (whichever is lower)

Click here for details of our current Buy to Let Mortgages

All our Buy to Let mortgages come with the following features and benefits. 

• Required rental income - 
Our Buy to Let mortgages are based on 130% of rental income, which means the monthly rent needs to be 30% more than your monthly interest payments.
• No income checks - 
For our Buy to Let mortgages we base how much we can lend on the expected rental value of the property.  That means we don’t need to consider income multiples and income checks.
• Portfolio of properties - 
We can provide mortgages for up to four properties in your portfolio subject to our terms and conditions.
• Repayment and interest only
 - All of our mortgages are available on a repayment or interest only basis.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.