Islands and UK buy to let mortgages

Have a chat with one of our experts to see if you can apply for a Buy to Let mortgage. If approved, they’ll let you know how much you could borrow. This is a free service and you do not have to apply for your mortgage with us.

Book an appointment to get started.

To help us find the right deal for you, bring as many of the following items as you can to your meeting:

About you

• proof of identity and residence - this could be your passport, driving licence or any official document with your photo and signature
• residency card (Jersey only)
• your National Insurance Card/Social Security Number
• three months’ bank statements for all accounts not held with Lloyds Bank
• your last three months’ payslips (if you are salaried) or the last 12 payslips (if you receive weekly pay)
• confirmation of last three years of bonuses
• if you are self-employed – your certified accounts and personal income tax assessments from the last two years
• the name and address of your Advocate/Solicitor (if available).

Your residential mortgage

• details of your existing mortgage if it is not with Lloyds Bank International
• proof of home ownership within the crown dependencies

Your rental properties and finances

• details of any other Buy to Let properties that you own
• details of any loans that you have, plus three months’ credit card or store card statements (if applicable)
• details of any existing endowment policies and investment products that you may intend to use to repay an interest only Buy to Let mortgage
• proof of your deposit (minimum 25%)
• if you have received funds in the form of a gift towards this purchase, please provide a letter from the donor stating that the money is a gift and is not expected to be repaid
• details of the property you wish to buy (if known) such as particulars from the Estate Agent or Builder, the address and purchase price.
• if the property is currently tenanted, please provide existing tenancy agreement

Tenants - think carefully about the type of tenant you want to attract e.g. young professionals, families or sharers. This will help you to decide on the type of property you buy and its location. The property should be let based on the equivalent of an assured shorthold tenancy agreement. This should be for 6-month min and 12-month max period.

Location -  do your research and visit different areas. Location will often affect the type of tenant you will let to. You don’t have to buy close to your own home. Think about in-demand areas which might attract more renters. Once you've chosen an area, think about what’s nearby e.g. transport links, parking, shops and schools. Pick the brains of letting agents for information about areas where properties may be easier to rent.

Condition of the property - if you're buying a property that needs work, you might find this will limit the amount you can borrow. It could also delay how quickly you can let the property out. Think: can you afford the mortgage payments during the renovation period?

Rental income - Talk to local letting agents and look on letting websites. You can check the local press to see how much other rentals cost. The mortgage valuation will have an estimate of the rental income for your property. This will be on an unfurnished basis. But, there are no guarantees of what rental income you will get or if the property will rise in value over time.

As a landlord, it’s your job to make sure your property is safe and liveable. Each jurisdiction has its own rules, so you will want to take independent advice from a local lawyer or agency.

A tenancy agreement is a contract between you, the landlord, and your tenant. You’ll most likely have an Assured Shorthold Tenancy agreement (AST). This will provide limited security of tenure to the tenant. 

Although the content of your agreement may vary, it should include the following information:

• details of the parties involved
• the date the tenancy began
• how long the tenancy will last (the AST should be for 6-month min and 12-month max period.)
• details of the initial deposit that the tenant should pay and how it is to be protected
• details of the monthly rent, when it is due and how it is to be paid
• the length of notice that the tenant and landlord need to give to end the tenancy
• details of the tenant's obligations while renting the property
• a provision confirming that the tenant is not liable for fair wear and tear to the property.

The rules can vary according to jurisdiction, so make sure you seek local advice. The agreement is signed by the tenant and the letting agent, or the landlord if no agent is involved. It can later be changed if both parties agree. We recommend you seek advice from a letting agent or independent legal advice on the terms of the proposed tenancy agreement.

Your tenant’s deposit is paid to you at the start of a tenancy. You can use it to pay for missing items or any damage caused by the tenant.

These schemes protect your tenant’s deposit. You’ll need to place your tenant’s deposit in a scheme soon after your receive it. Check the government’s website in the jurisdiction of your property for more detail.

It’s important you use the right insurance for your Buy to Let property.

Standard property insurance policies don’t normally pay out when a property is let. You’ll need to arrange landlord insurance instead.

Landlord insurance is a specialist policy that covers landlords against a range of effects. As well as insuring the building and any contents that belong to you, these policies often provide legal cover. This may help with the legal costs of tenant disputes. They can also include:

• rent guarantee cover - helps protect against a tenant failing to pay rent or something happening to the property that makes it impossible to let out
• landlord liability cover - protects against large compensation claims arising from an injury caused by a fault in the property.

Tenants are responsible for insuring their own personal possessions.

You will have some responsibility for the upkeep of your property. However, this will differ for each jurisdiction. Seek local advice to find out the right information for you.

If you want to end a tenancy or evict a tenant, you’ll have to follow a strict process. This process differs for each jurisdiction. Seek local advice to find out the right information for you.

Buy-to-Let properties in the UK must meet a minimum energy efficiency standard. Check the government’s website in the jurisdiction of your property for more detail.

For independent tax advice you should speak to an accountant about the implications of a buy to let mortgage.