Buy-To-Let Mortgages

Looking for a buy-to-let mortgage? Whether you’re an experienced landlord or considering your first buy to let investment, at The Mortgage Factory we’re always ready to construct future-proof advice!

What is a buy-to-let mortgage?

A buy-to-let mortgages are for people who are looking to buy a property to let out to tenants, rather than to live in.

Whether you’re a first-time landlord or an experienced investor, it’s a good idea to speak to a buy-to-let mortgage broker about your options. Our specialist buy-to-let mortgage brokers offer access to over 90 lenders and 12,000 mortgages, so we can help you find the right mortgage for you!

Getting a Buy-To-Let Mortgage

So how does it work? Getting a mortgage on a buy-to-let property is different to getting a mortgage on a house you’re going to live in. Firstly, you’ll usually need a larger deposit, typically at least 20%.

Also, the amount you’ll be able to borrow is linked to how much rental income you expect to receive from your buy-to-let property investment rather than your income. Lenders typically require the rental income on your buy-to-let property to be 25%-30% higher than your monthly mortgage payments.

With an interest only buy-to-let mortgage, your mortgage payments each month will only cover the interest. You won’t pay off the original loan amount – the capital – until the end of the mortgage term. The interest only buy-to-let mortgage is the type of buy-to-let mortgage the majority of landlords choose.

With repayment buy-to-let mortgages, your monthly payments are made up of two parts – capital and interest. Your monthly payments will be higher but the property will be paid off by the end of the term.

Tax when purchasing a property

If you plan to invest in a buy-to-let property it’s important you are aware that rules around tax have changed in recent years. For up-to-date information on how to manage tax for your buy to let investment talk to The Mortgage Factory’s whole of market advisors!

If you purchase a buy-to-let property and then sell it for a profit you may need to pay Capital Gains Tax. For basic rate taxpayers, Capital Gains Tax charged on second properties is 18% on gains made when selling the property. While the rate for higher or additional rate taxpayers is 28%. However you’ll only need to pay these rates on the gains that exceed your capital gains allowance. You can also deduct legitimate costs like stamp duty too, contact us for more information.

If by buying a residential property it means you’ll own more than one, you’ll usually have to pay an extra 3% on top of stamp duty rates.

If you are interested in remortgaging a buy-to-let – perhaps to save money on your monthly mortgage payments or to release some equity to help you purchase another buy-to-let investment, read our guide on how to remortgage your property.

As a landlord, the rent you receive on your buy-to-let property investment is treated as taxable income and may be liable to income tax. The rate payable will depend on your income tax band. However you can minimise the tax you have to pay by deducting certain ‘allowable expenses’ such as letting agent fees and property maintenance.

Since April 2020 landlords have no longer been able to deduct mortgage expenses from their rental income to reduce their tax bill. Instead as a landlord you’ll receive a tax credit based on 20% of your mortgage interest payments.

Whether you’re considering a buy-to-let investment, or just looking for some impartial advice, it’s a wise move to speak to a buy-to-let mortgage broker to chat through your options. Our specialist buy-to-let mortgage brokers are here and ready to help you!

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances, with the fee being up to 1% but a typical fee is £495.

Your home may be repossessed if you do not keep up the repayments on your mortgage.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

What makes us different?


Peter & Frances
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“We would just like to say THANK YOU to you all at The Poulton Branch in helping us to obtain a remortgage. Special thanks goes to Marc Bennett, who was very helpful and extremely patient during the process. Marc was an absolute star, providing us with constant updates and much appreciated professional advice. We are eternally grateful for what you managed to accomplish on our behalf, we are delighted!”
Amanda & Nolan
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“Thanks so much for all the help and support you provided during our recent house move, Sam and team! In the period of stress and uncertainty, The Mortgage Factory shone out as being consistently helpful and professional. The help, guidance and direction is so very much appreciated. Thanks again.”
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“I just want to sat a huge thank you for helping me purchase my second property. I know it was tricky at times, and you invested a lot of your time into making sure things progressed Professional and friendly, as always.”
Chris & Kiera
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“Sam, and everyone at The Mortgage Factory. Thanks so much for helping us to buy our first house. You went above and beyond, and we really appreciate all of your hard work.”
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“I just want to say thank you for everything you have done in helping me buy my first home. You made the process stress-free, and I couldn’t be happier!”

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