Buy-To-Let Mortgages

Looking to invest in property and become a landlord? Our buy-to-let mortgages are tailored to meet your needs, whether you’re a seasoned investor or just starting out. Let us help you make the most out of your investment with our expert advice and competitive rates.

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FAQs - Buy-To-Let Mortgages

A buy-to-let mortgage is a type of mortgage used to purchase a property for the sole purpose of renting it out, rather than living in it. The borrower receives rental income from tenants, which is used to pay off the mortgage. This type of mortgage typically requires a larger deposit and the lender will assess the potential rental income to ensure it covers the monthly mortgage payments.

Investing in property and renting it out as an investment is a popular choice for many, and buy-to-let mortgages are designed specifically for this purpose. Regardless of whether you’re a first-time landlord or an experienced investor, these mortgages can be suitable for you. However, keep in mind that buy-to-let mortgages usually require a higher deposit compared to regular residential mortgages, usually over 25%.

When it comes to their structure, buy-to-let mortgages are similar to traditional mortgages. However, buy-to-let mortgages usually operate on an interest-only basis. This means you only pay the interest on the loan each month, rather than paying both the interest and the balance. Typically, the balance of the mortgage is repaid when the property is sold.

The lending amount you’re eligible for depends on the value of the property and the projected rental income. Typically, lenders require the anticipated rental income to be at least 125% of your monthly interest payments. For instance, if your interest payments are £400 per month, they’d expect you to charge around £500 per month in rent.

Buy-to-Let mortgages are designed specifically for properties that will be rented out. If you’re looking to take out a mortgage for a property that you intend to live in, then a residential mortgage would be more appropriate.

The limit on the number of buy-to-let mortgages or the total amount of borrowing varies between lenders. Our advisors will take into account any other properties you own and find a suitable lender that matches your circumstances.

We don't charge a broker fee!
Saving you up to £995*

At Prosperity Mortgages we do not believe in charging our clients a broker fee for our service. In the UK, mortgage advisers are typically paid a procuration fee (commission) from the lender you take your mortgage through, which means we still get paid but don’t charge you a fee for arranging your mortgage.

*Based on the maximum broker fee we could choose to charge being £995

£0 Broker Fee

Save up to £995 in broker fees by using Prosperity Mortgages.

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