Best Buy To Let Mortgages Uk
NatWest mortgages are available to over 18s. Your property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice.
best buy to let mortgages uk
Typically buy to let mortgages are based on rental income and lenders will generally expect it to be at least 125% of the monthly repayments on your mortgage. This is called the Interest Coverage Ratio (ICR).
Now you can start looking for the property that best suits your needs and your potential tenants' needs. If you're looking to buy further afield, you might want to consider using a letting agent to manage the property on your behalf.
You can choose from fixed rate or tracker rate (currently not available with NatWest), as well as interest only or capital repayment mortgages. They all have pros and cons to consider when deciding what suits your needs.
Buy to let (BTL) mortgages are similar to the residential mortgages you find but there are differences when it comes to a buy to let mortgage, including: minimum deposit requirements, interest rates, minimum property value requirements and borrowing limits.
It depends on multiple factors including the property value, amount of deposit and rental income for the property. You could borrow up to a maximum of 3.5 million (in total across NatWest brands) with our buy to let mortgages.
You can have multiple buy to let mortgages with us, as long as your total aggregated borrowing with NatWest Group brands will be less than 3.5 million. See more information on NatWest's buy to let eligibility criteria.
If you're looking to buy or refinance a buy-to-let property, HSBC Expat capital repayment or interest-only mortgages could be the answer. We can also refer you to HSBC UK, which offers additional buy-to-let mortgages for UK properties.
Your Expat bank account will be held in Jersey, Channel Islands, a secure offshore jurisdiction and one of the world's leading and best-regulated international finance centres as recognised by the Organisation for Economic Cooperation and Development (OECD).
In many ways a buy-to-let mortgage is similar to the mortgage you can get for a residential property. So having a larger deposit or amount of equity will normally give you a better chance of securing the best deals. Monthly repayments will need to be made as well, though lenders will offer buy-to-let mortgages in the expectation that the income you make from rent will cover these.
If you want to buy a rental property and need a mortgage to do so, a lender will usually require that you take out a buy-to-let mortgage. This is because lenders apply different, and often stricter, lending criteria to buy-to-let mortgages than to residential mortgages.
Are you a UK expat looking for a mortgage in the UK to purchase a Buy-To-Let property or an expatriate remortgage to replace an existing UK Buy-To-Let mortgage or release equity? If you are considering acquiring or remortgaging a UK Buy-To-Let property then Skipton International, a bank providing some of the best expat mortgages in the UK, could help.
Skipton International offers a range of offshore mortgages for UK Buy-To-Let properties* and with UK property demonstrating long-term price inflation, purchasing a property whilst living abroad often makes financial sense. Please check out our simple step by step guide to discover more about an expat mortgage UK.
Skipton's streamlined process can see British expat remortgages complete in as little as 16 days from receipt of application and 4-6 weeks for expat mortgages for UK property purchases - although this can vary. Skipton's free valuation and free standard conveyancing reduces the hassle in arranging UK expat mortgages, particularly when you are located in a different time zone from the UK.
As an offshore bank, Skipton International has been serving UK expats and non UK nationals globally for over 25 years and understands the difficulties faced in accessing UK Buy-To-Let expatriate mortgages. We pride ourselves on providing offshore mortgage decisions quickly, and offer a friendly service to all our expat customers, including decisions in principle via our online mortgage calculator or by telephone. When applying for an expat mortgage in the UK you will be dealing directly with one of our helpful and experienced underwriters. This reduces the potential of delays and confusion when operating through middlemen, securing your expat mortgage in the UK quickly and effectively. These are the reasons, along with our award-winning customer service, why we believe Skipton offers some of the best UK Buy-To-Let mortgages for expats.
On the plus side, these mortgages often give you the flexibility to pay off part of your loan each year when your rentals are more profitable. Check first for penalty fees, especially if you have a fixed rate.
Buy-to-let mortgages work in a similar way to a standard mortgage but the type of loan you may be eligible for is based on how much rent the property can generate rather than just what you can afford in payments. Most lenders will still require you to have a minimum annual income, the amount of which depends on the lender.
It is important to take your time and research different mortgage lenders and different mortgage deals to make sure you get the best deal for your circumstances. Here are some common ways to compare buy to let mortgages.
It is possible to switch from a residential to a buy-to-let mortgage but you will need to consider which type of deal best meets your needs. You may be able to do this with your current lender. However, it could be necessary to remortgage with a different lender on a buy-to-let basis. Learn more about this process.
'Buy to Let' Mortgage AdviceAlthough there are plenty of competitive 'Buy to Let' mortgage deals on the market (ranging from variable to fixed rate options) it's imperative to the find the best 'Buy to Let' mortgage rates, you may decide to specialise n a particular area (such as student lets) and as a result may require a specialist lender.
Before the 1980s the number of private individuals who became landlords was very small. Buying a property to rent was seen as the preserve of professional landlords and persons who were sufficiently wealthy to pay cash or having sizable deposits enabling them to obtain commercial-style mortgages. The modern 'buy-to-let' mortgage was not available and the possibility of purchasing property as a means of funding a retirement income did not occur to most people. The infrastructure of loans, advice, and information was not available.
As for all property rental, the benefits for a buy-to-let landlord can include a stable income from rental receipts and an accumulation of wealth if house prices go up. Rising house prices in the UK have made buy-to-let a popular way to invest. The main risk involves leveraged speculation, where the landlord takes a loan to buy the property with the expectation that the house can be sold later for a higher price, or that rental income will meet or exceed the cost of the loan. In the best outcome for the landlord they will have benefited from the use of the lending banks money indicating that they have allocated the capital more efficiently than professional investors could have done. If the landlord cannot meet the conditions of their mortgage repayments then the bank will seek to take possession of the property and sell it to gain the loaned money. If prices have fallen, leveraging could leave the landlord in negative equity.
Buy-to-let mortgage is a mortgage arrangement in which an investor borrows money to purchase property in the private rented sector in order to let it out to tenants. Buy-to-let mortgages have been on offer in the UK since 1996.
The most common type of buy-to-let mortgage is an interest only option. The interest rate on the mortgage can be fixed or variable. Fixed rates means that the payments would not fluctuate, and variable rates means that the payments may go up or down in line with the Bank of England base rate. The interest rates and fees that are offered on BTL mortgages are, on average, slightly higher than those for an owner-occupied mortgage. This is due to the perception amongst banks and other lending institutions that BTL mortgages represent a greater risk than residential owner-occupier mortgages.
A buy-to-let mortgage is similar to a standard mortgage, except the fees tend to be much higher. Often, many people choose an interest-only buy-to-let mortgage. This means that they only pay off the interest that builds up on the loan each month, and then pay back the loan in full at the end of the term. You can also get buy-to-let mortgages where you pay off the loan in monthly installments too.
Whether this is your first Buy to Let or you are a portfolio landlord, financing in your sole name or under a limited company, we can help. We have access to the best Buy to Let lenders in the market and can secure competitive rates for you.
Arrangement fees tend to be higher too, so when comparing deals, evaluate the overall cost of the loan, as a cheaper initial rate can sometimes be outweighed by high-cost fees. It can really pay to speak to a mortgage adviser to help you secure the best mortgage deal.
Author:\n Pete Mugleston\n \n \n - Mortgage Advisor, MD \n\n \n \n \n \n Updated: September 21, 2022\n\n \n \n \n \n \n \n \n \n \n\n \n \n \n \n\n \n \n \n\n \n \n\n With the unpredictability of the mortgage market, we want you to have complete confidence in our service, and trust that you're getting the best available rate and the highest chance of mortgage approval.\n\n If you're concerned or confused about what to do next, Get In Touch and we'll match you with a Specialist who'll give you the right advice for you and your circumstance.\n\n \n Get Started \n \n \n\n\n\n \n Many Brits consider buying an overseas\u00a0buy to let (BTL)\u00a0property but feel confused about where to go for advice, or are simply unsure whether an\u00a0overseas property\u00a0is a good investment.\nAs well as this, BTL mortgages for overseas properties can be a tad trickier to arrange because\u00a0 there can be different rules regarding taxes and property laws \u2013 but that\u2019s not to say it\u2019s impossible.\nThe good news is that there may be lenders in the UK and overseas who are willing to approve your\u00a0mortgage application.\nTo help make the process as simple as possible, we\u2019ve created this guide with lots of helpful tips including\u00a0where you can turn to for advice.\n \n\n\n\n let quickLinks5 = () => (\n active: 0,\n setActive(newActive) \n let activeEl = document.getElementById('oma-quick-links-v2--5').querySelector('.oma-quick-links-v2__topic--active');\n\n if (this.active === 0 && activeEl) \n activeEl.classList.remove('oma-quick-links-v2__topic--active');\n \n\n this.active = newActive;\n \n )\n\n\n\n \n \n \n What are you looking for?\n\n \n \n \n Overseas buy to let mortgages \n\n \n \n \n Can I get a buy to let mortgage for a property abroad? \n \n \n \n Why invest in a Buy to Let property abroad? \n \n \n \n How to finance an overseas mortgage \n \n \n \n Calculating the rental yield \n \n \n \n Get expert advice about buy to let mortgages overseas \n \n \n \n \n \n Key things to consider \n\n \n \n \n Where to buy your overseas Buy to Let \n \n \n \n What should I look out for when buying an overseas property? \n \n \n \n How to find the best overseas BTL lender \n \n \n \n How to find tenants for a buy to let property abroad \n \n \n \n Is there a mortgage calculator I can use? \n \n \n \n \n \n \n \n\n\n\n \n Can I get a buy to let mortgage for a property abroad?\nYes. Although it can sometimes be more complicated to get a mortgage for an overseas Buy to Let because every country has different rules, taxes and processes when it comes to property, not to mention a different language.\nWhether or not you will be approved for a Buy to Let overseas mortgage will depend heavily on:\n\nThe lender\nYour income\nYour employment type\nYour age\nAny bad credit or debt you have\nThe amount of\u00a0deposit\u00a0you have to put down\n\nFor more information on how any of the above factors could affect your BTL overseas mortgage application,\u00a0speak to an advisor.\u00a0\nWhy invest in a Buy to Let property abroad?\nA BTL let property can be a great investment opportunity and can also help landlords build an international\u00a0property portfolio.\nMany landlords are drawn to overseas property because the interest rates on mortgages can be lower in some countries.\nAs well as this, in certain locations, property can be cheaper in comparison to investment opportunities in the UK.\nOf course, another great appeal is that depending on the country you choose to buy in, an overseas property can provide a great\u00a0holiday home\u00a0when not occupied by tenants.\nWhere to buy your overseas Buy to Let\nMany investors seek buy to let opportunities abroad as opposed to the UK because of the prospect of higher rental yields.\nPerhaps you\u2019re seeking a holiday villa near the beach? If so, you\u2019ll need to consider the upfront costs versus the return on rent.\nWhen considering the various locations to buy in, it can be helpful to research and get a good understanding of the demand for property in the area.\nThis, combined with a prediction of rental profit, can help you make a decision about where you can potentially make the most money with the least risk.\nWhich countries are the most popular among international BTL buyers?\nAlthough the advisors we work with have helped customers secure mortgages in a broad range of different countries, there are a handful of territories that are particularly popular.\nIncluding\u2026\n\nTurkey\nCanada\nUSA\nPoland\nSpain\nFrance\nItaly\nPortugal\n\nClick on any of the countries above for detailed information about buying in that territory. If the country you\u2019re interested in isn\u2019t on that list,\u00a0make an enquiry\u00a0and the expert brokers we work with will help you find the right international lender for your needs and circumstances.\n \n\n\n\n \n \n Speak to a overseas mortgage expert \n\n \n \n \n Get Started \n\n \n Call us 0808 189 2301 \n \n \n\n\n \n How to calculate the rental yield for an overseas property\nTo be confident that your initial investment will give you a good return in rent, you need to work out how much rent you would charge per year.\nIf you are unsure, look at similar rental properties in the area on letting agency websites to compare rental fees.\nOnce you have this figure, divide it by the market price of the property and multiply by 100 to give you your rental yield percentage.\nIdeally, a rental yield of 7% or more is good and the higher the percentage, the better value the property.\n \n\n\n\n \n Here\u2019s an example\nIf you were to purchase a buy to let property in Spain for \u00a3120,000 and charge \u00a3700 a month in rent, your annual rent income would be \u00a38,400.\nTo calculate the rental yield divides your annual rent by the property price.\n(\u00a38,400 \/ \u00a3120,000 = 0.07)\nMultiply this by 100 and your rental yield is 7%.\n \n\n\n\n \n If you would like professional advice about the rental yield or profitability of a Buy to Let overseas property,\u00a0contact an advisor.\nHow to find tenants for a buy to let property abroad\nOften landlords will remain in the UK whilst they rent our their BTL property, so some use letting agents to manage their property and find tenants.\nThis can be expensive though with some agents asking for a 20% fee on rental income.\nIf you don\u2019t want to hire a lettings agent who can help you find tenants, there are things you can do yourself to market your Buy to Let overseas property.\n\nUse your own social media to market to your friends and family\nCreate a Facebook business page to promote your property\/properties\nCreate your own website\nAdvertise in local newspapers\nAdvertise on rural tourism websites\nAsk local businesses if you can leave flyers in their shop\/restaurant to attract tourist\nAttach flyers to local notice boards\n\n \n\n\n\n \n\n Rated excellent by our customers\n \n \n \n Absolute Fab: I got a mortgage as an ex-bankrupt !!!\n As an ex-bankrupt with a qualified Annulment I had to take several bridging loans to cover my debt. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. Within 6 weeks we exchanged contracts and I am now debt-free, and my house is safe.\n \n S Bakht \n \n \n They pulled out all the stops\n Great staff and good communication. Helped us understand the process and gone over and above to help in a difficult situation. Other companies couldn't even be bothered but Thank you so much!\n \n Anneke Woolley, 12 days ago \n \n \n Our advisor was amazing from the start!\n Aaron went above and beyond. He worked late and kept in contact with me and worked tirelessly to find me the best mortgage he could\n \n James, 10 days ago \n \n \n \n\n\n\n \n How to finance an overseas mortgage\nThere are a couple of BTL overseas mortgage options that may be suitable for you.\nThese include:\n\nUsing an international Buy to Let lender\nUsing a local lender in the country you\u2019re buying in\nRaise capital on a property you already own\n\nInternational lender\nUsing an international lender can sometimes be confusing, especially if you do not know the language and are unfamiliar with the local property laws.\nAs well as this, because international lenders do not have access to your UK credit file, it can take longer for them to establish whether or not you have bad credit and pose a risk to them as\u00a0bad credit mortgages\u00a0can be harder to obtain.\nThis can slow things down although in the right circumstances it may be possible to find a lower interest rate for your mortgage.\nIn some countries, you may also require a larger, non-refundable deposit for a buy to let foreign property mortgage, so have your mortgage advisor thoroughly check your paperwork and contract before paying any money upfront.\nUK-based lender\nTaking out an international buy to let mortgage with a UK lender can be easier because you\u2019ll be dealing with a UK lender and may be more familiar with the processes of a mortgage application.\nAnother benefit is that there are specialist UK lenders who offer overseas mortgages which can help to avoid any document translation issues or fees.\nThat being said, some UK lenders can be more restrictive when it comes to BTL properties so buying one abroad can sometimes heighten caution and result in higher interest charges or\u00a0larger deposits.\nYou\u2019ll also need to pass the lender\u2019s\u00a0affordability\u00a0checks although keep in mind that every lender you approach will have different rules on how much they can lend.\nA disadvantage of getting a loan from a UK lender for overseas property is that the lender will have a lack of local market expertise.\nBecause of this, it is important that you seek advice from a broker who has experience with overseas mortgages, like the ones we work with.\nI\u2019m moving abroad. Is changing my mortgage to buy to let possible?\nMoving abroad and changing your mortgage to buy to let can be a very risky decision, especially if the property you\u2019re considering\u00a0remortgaging\u00a0is your home,\nThis is because having your UK property as collateral for your new BTL mortgage will put it at risk if you cannot repay.\nIt\u2019s important to work out if you can afford to pay your existing mortgage as well as