Buy to let mortgages

Buying property and becoming a private landlord should not be seen as an easy way of making money. It can be riskier and more complicated than you may think. It can also be very time-consuming than most other forms of investment.

There are many reasons for this. Selecting the property to buy, the location and type all requiring some thought and research.

Many Buy-to-let property owners do so to take advantage of the increases in house prices, these often exceeding the returns from other investment vehicles.

However, the property market may not rise as much as you planned. And if the rental monies do not cover the mortgage payments and other costs like mortgage insurance (this and other forms of landlord insurance being vital), not to mention the initial costs such as legal fees, you can end up losing money.

As a Mortgage Broker, we have access to a wide range of Buy-To-Let Lenders

That said, having a second property to let to tenants could reap considerable financial rewards over time. And, as we have access to numerous buy to let mortgage providers, you be assured of getting the very best deal.

Your Buy to let mortgages contact

Ian Scott

Ian is the owner of Scott & Goose and has been in the Mortgage and Insurance business since 2003.

Just some of the providers we use...

Buy to let mortgages are very different from other ‘commercial mortgages’

  • Rent Potential – the decision as to whether or not a mortgage will be offered is usually based on the rent (also known as ‘loan-to-value’ or loan to the expected rental income) you will earn as well as your income. Although, in some cases, your income is not even considered, and so your credit score will not be affected.
  • Interest Rate – buy to let mortgages have slightly higher interest rates.
  • A valuation is still required, and a larger deposit – typically a minimum of 20% or 25% of the property’s value is required as a deposit.
  • You can purchase a property in a limited company with the potential to save on income tax and capital gains.

Releasing funds from your home

Equity release is increasingly becoming a favourite method of raising the necessary capital to buy a property and is one route anyone over the age of 55 should consider. However, as with any important financial transaction, it is important to talk to a knowledgeable adviser before signing any paperwork.

Please see our Equity Release calculator for more details.

Consider your reasons for buying property to rent out

When buying a second property to let, you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make a profit month on month, or are you looking to make a profit through increased equity from the second property, as it grows in value over time? 

This decision may affect the type of property you purchase as well as its location. Scott & Goose can advise you on this, and all without using complicated jargon.

"Great service. We were removed out of our Decision In Principle (DIP) for a change in criteria in self employment, but Ian had already found another by the time i had called him. He's easy to talk to 🏠 and we are about to move in!"
"Ian has been dealing with my personal and buy to let mortgages and those of my family for many years now. He is helpful, knowledgeable and professional - highly recommended."

Frequently asked Buy to let mortgages questions

When choosing a property that you intend to let out, it is wise to take advice from local letting agents to determine; what types of properties are in need and which parts of the town are best or most wanted.

They can tell you if there is a University in the town, and if students are looking for somewhere to live, while perhaps having some knowledge about the planned expansion of local firms, all of which can have a significant effect on house prices in the future.

You should note that the Financial Conduct Authority (FCA) does not regulate most buy to let mortgages, which in turn means you have to be sure you are talking with the best advisers.

So, please do call for free advice, we know we can help you make the best decisions.

When you manage a property, there are many costs involved in addition to the monthly mortgage repayments. 
These additional costs include:

  • Property upkeep – maintenance costs for the property.
  • Letting agent’s fees – letting agents charge around 10% of the monthly rent for finding and vetting tenants with an additional cost of about 5% if you require a full management service.

  • Ground rent/service charges – applicable to leasehold properties.
  • Legal insurance – to cover costs from evicting tenants in the event of non-payment, very important, as this can be very expensive.

  • Insurance – building insurance and contents insurance for the items provided as part of the rental agreement.

  • Furnishings – the costs of purchasing of any furniture. If the property is to be let as furnished, make sure you include the costs of this in your calculations and are covered by insurance.
  • Gas / electrical appliances – the cost of maintaining appliances and ensuring they comply with any safety tests regulations.
  • Decorating costs – the property may require work ranging from painting, to a new bathroom suite before it is suitable for letting to tenants.

You can trust Scott & Goose

FCA Regulated

Scott and Goose is directly authorised and regulated by the Financial Conduct Authority under reference 661183.

Personal service

Being a small independent company, we can offer a genuinely personal service with direct access to your adviser via mobile during the day, evenings and weekends.

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Need more information?

The best way we can help you is to have a quick conversation to understand your situation and recommend appropriate products. Contact us today for a no-obligation discussion.