buy to let mortgages


How do buy to let mortgages work?

When you require a mortgage for a property you are going to rent out (not live in), you will need a buy to let mortgage. Unlike a residential mortgage, when a bank looks at how much to lend you, they’ll calculate your forecasted rental yield.


What is rental yield?

Rental yield is the amount you receive from the tenant after your mortgage cost comes out. So, if your tenant pays £1000, and your mortgage costs £900 – your rental yield is 10%.


How do I get a buy to let mortgage?

You’ll apply for funding from a bank. However, you’ll usually need a 25% deposit, as buy to let mortgages are seen as riskier than normal (residential) homes. This is because the lender will consider that if you can’t find a tenant, you’ll probably be paying the buy to let mortgage plus your own.


Top tips on investing in a buy to let property

  • Start small – two-bed terraces with a small garden are in demand.
  • If you have more than one rental, try and share the risk across different properties in different areas.
  • Excellent transport links, schools, shops and low crime are essential.
  • Ask around, is this a good area/street to live in?
  • Parking is at a premium, so ensure that there is somewhere possible.
  • Look at local rental yields, how much could you realistically expect.
  • Neighbours – any reports of noise or disturbance?
  • Get a survey even if it’s at auction – your property needs to be a sound investment.
  • Put durable interiors in that can easily be replaced – use neutral colours.


Find a buy to let mortgage adviser in your area

A buy to let mortgage adviser will be able to help you with your application for a buy to let mortgage, discussing what your current circumstances are, your wealth goals, your investment and any potential pitfalls.

You are more likely to get a ‘yes’ with a mortgage adviser.

If you’re not sure which mortgage is right for you, how much you can afford based on expected rental yield, or whether you meet the lender's requirements, speak to one of our qualified mortgage specialists. They’ll advise you and help guide you through the application process. Just call 03300 583 859.

Why choose NM Money?

  • We don’t charge you a thing - our service is fee free
  • Simple mortgage advice without the jargon
  • We search the whole market to find you the best deal
  • Our expert advisers are available 7 days a week
  • We’re authorised by the Financial Conduct Authority (FCA)

Call us today on 03300 583 859 or request a call back.

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