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A buy to let mortgage could kickstart your rental property portfolio or help you expand it. Find out how to apply and explore our buy to let deals today.
A buy to let mortgage is a type of loan that can help you buy an investment property. It’s usually for people thinking about buying a property to rent out rather than live in.
They can be either repayment or interest-only mortgages. If it’s interest-only, you’ll only pay back the interest on your loan each month rather than the money you borrowed, known as the capital. At the end of the mortgage term, you’ll then need to repay the capital in full. You can do this by selling the property, using cash savings, or taking out a new mortgage.
It's your responsibility to make sure there's a plan in place to pay off the mortgage.
As a Club Lloyds current account customer, you could get a 0.20% discount off your initial buy to let mortgage rate.
This is the legal side of buying and selling a property. A licensed conveyancer or solicitor can help you with the ins and outs of this part of the buy to let process.
The size of your deposit can vary depending on your lender’s requirements. You’ll typically need a deposit of at least 25%, giving you a loan to value (LTV) ratio of 75%.
Yes, you’ll usually find that buy to let mortgage rates and fees are higher than standard residential mortgages. But, your monthly mortgage repayments may be lower if your deal is interest only because you’ll only be paying the interest. Repayment mortgages are different – you pay back the loan and the interest.
If you’re looking to buy a property and rent it out rather than live in it yourself, you’ll need a specific buy to let (BTL) mortgage. BTL mortgages are usually interest only, so you’ll still need to pay the borrowed debt at the end of the term.
Yes. If you’d like to move your buy to let mortgage to us from a different lender you can always remortgage. You can also remortgage to a buy to let from a residential mortgage if you’ve decided to rent out your property and live somewhere else. However, if your existing mortgage is fixed term, you may need to check for any extra fees.
There are different regulations for residential and buy to let mortgages. Some conditions may state that you can’t live in the property if it’s intended for rental purposes. If you break this condition, your lender could ask you to repay the mortgage.