We’ve helped many new landlords step into the rental property market, as well as helping experienced investors build their property portfolios. With a selection of discounted and fixed rate mortgages, we can help make your property investment come to life.
Your eligibility depends on your individual circumstances. When it comes to your application, we factor in both your personal income and rental income to assess your affordability, so we can help you find the right mortgage for you.
To apply for a mortgage with us, you’ll need to meet our Buy-to-Let lending criteria. A few things to look out for are:
You have a total earned income of at least £20,000 per annum.
You currently own your home (with or without a mortgage).
The property is in England, Scotland or Wales
The property is not a new build flat (under 5 years old).
The property is to be let on an Assured Shorthold Tenancy, between 6 and 12 months.
The maximum LTV on the property is 80%.
The minimum mortgage amount is £50,000.
The minimum valuation for Buy-to-Let mortgages is £75,000.
The minimum EPC rating must be ‘C’ for 80% loan-to-value (LTV) applications.
Whether it’s your first or fifth rental property, we understand that property is a huge investment and our team is on hand to guide you through the process. To discuss our full criteria, or if you have any questions, give our team a call on 0800 781 4311.
Which Buy-to-Let mortgage do I need?
There are three categories for this type of mortgage, so it’s important to first consider which one best fits your circumstances. Not sure which is right for you? Give our team a call on 0800 834 312.
Unregulated Buy-to-Let Mortgage
The most common type of Buy-to-Let mortgage. If you’re a landlord buying a property to rent out, this is the one for you. Also known as ‘Investment Property Loans’, these mortgages are not regulated by the Financial Conduct Authority.
Regulated Buy-to-Let Mortgage
Also known as ‘Family Buy-to-Let’, this is the right mortgage if you’re intending to rent out your property to a family member.
If you’re moving house but want to remortgage your existing property to let out, this is known as a ‘Consumer Buy-to-Let’ (or an ‘Accidental Buy-to-Let’). This also applies if you inherited the property.
You can have multiple Buy-to-Let mortgages, however, we have a limit of five properties. If you already own five or more rental homes, then unfortunately you would not be eligible for a Buy-to-Let mortgage with us.
Can I switch my residential mortgage to a Buy-to-Let?
Switching to a Buy-to-Let mortgage is possible. For Furness customers, the easiest way to change your mortgage would be to simply switch to a new Furness product. Non-Furness customers can go down the remortgage route instead. Before switching to a Buy-to-Let mortgage, ensure you check the terms of your current mortgage first. You may be eligible for an early repayment charge if you’re still within the deal period.
Alternatively, you may be able to get ‘Consent to Let’ on your current mortgage. This would allow you to rent out your home, without breaking your mortgage terms. It’s vital that you get permission from your current mortgage lender, as renting out a residential property without consent could be viewed as mortgage fraud. If this were to happen, you may be asked to repay your mortgage in full or risk losing your home.
Consent to Let is usually only granted for a certain amount of time. So, if you’re changing your main residence into a rental property long-term, a Buy-to-Let mortgage would be more suitable.
Am I eligible to switch to a Buy-to-Let mortgage?
Whether or not you’re able to change your residential mortgage to a Buy-to-Let with us depends on a variety of factors. This includes your property type, personal circumstances and the terms of your original mortgage agreement. Our advisors will need to assess your circumstances thoroughly to see if you are eligible and, if so, provide you with your options.
What’s the difference between Buy-to-Let and Let-to-Buy?
Whilst they may sound similar, they’re very different. A Buy-to-Let mortgage is required for properties that you intend to rent out.
A Let-to-Buy, on the other hand, is slightly more complex. This type of mortgage allows you to rent out your current home, whilst providing you with a loan to purchase a new home. This is actually done using two mortgages - one for the property you’re renting out (Buy-to-Let) and another for your new home (residential).
What fees are involved in a Buy-to-Let mortgage?
As with any mortgage product, additional fees will apply. More information on the fees that may apply can be found on our mortgage fees and charges page.
Can I have a residential mortgage on a rental property?
In most circumstances, you cannot have a residential mortgage on a rental property.
In some situations, you may be able to get consent from your lender to rent out your home, without changing your mortgage. This is known as ‘Consent to Let’ and it can only be used as a short-term solution. Getting this permission before renting out your home is crucial, otherwise, you risk losing your property.
Can you get a Buy-to-Let mortgage as a first time buyer?
While it’s possible for first time buyers to secure a Buy-to-Let mortgage, most lenders view them as high-risk applicants. This is mainly due to their lack of experience in property ownership. It's also worth noting that here at Furness, our lending criteria requires Buy-to-Let applicants to already own their own home - either outright or mortgaged.
From new mortgages to remortgaging and Buy-to-Let, we can help you find the right deal.