Buy-to-let mortgages

A mortgage broker makes the buy-to-let process easier to understand. They explain what lenders look for, compare mortgage deals for you and help with the paperwork. They’ll also speak to the lender on your behalf and keep your application moving.

Here’s how they support you:

• They explain the criteria: Buy-to-let lenders often have different expectations around things like rental income, your own finances and the type of property. A broker breaks this down, so you know exactly what matters.
• They compare deals for you: Instead of scrolling through endless rates, your broker looks at the whole market and shows you the mortgages that could work best for your plans.
• They help with the paperwork: Applications can be detailed. A broker guides you through what to provide and makes sure nothing important is missed.
• They speak to the lender on your behalf: If something needs clarifying, or the lender has a question, your broker deals with it so you don’t have to.
• They keep things moving: From application to offer, they stay on top of the process and let you know what’s happening at each step.

Typically, you’ll need a deposit of at least 25% of the property’s value, though some lenders may accept less depending on your circumstances. Speak to a mortgage adviser who will be able to confirm this for you.

Yes. Many landlords own their primary residence and use a separate buy-to-let mortgage for their rental property.

If your property is empty or tenants miss payments, you’ll still need to pay the mortgage. Property values can also fluctuate, so it’s important to plan carefully.

Whether you should fix or track your buy-to-let mortgage rate depends on your goals, attitude to risk, and the wider interest rate outlook.

A fixed-rate buy-to-let mortgage gives you certainty, your interest rate and monthly repayments stay the same for a set period (usually two, three or five years). This can help you budget with confidence and protect against rising interest rates. However, if rates fall, you won’t benefit from lower payments until your fixed term ends.

A tracker buy-to-let mortgage, on the other hand, moves in line with the Bank of England base rate (plus a set margin). This means your monthly repayments can go up or down depending on how the base rate changes. Tracker mortgages can offer lower initial rates, but come with the risk that payments could rise if interest rates increase.

• Fixed rate means stability and predictable repayments.
• Tracker rate means flexibility and potential savings, but with more risk.

When deciding between the two, think about your long-term investment plans, cash flow, and risk tolerance. If you value certainty, a fixed rate might suit you better. If you’re comfortable with some fluctuation and expect rates to fall, a tracker could be worth considering.

It’s always wise to speak with a mortgage adviser who can help you compare options and choose the deal that best fits your buy-to-let strategy.

This is called remortgaging. Compare new rates, check for exit fees, and apply when your current fixed term ends. Remortgaging can reduce costs or release equity for further investment.

A buy-to-let mortgage is for people who want to buy a property as an investment, usually to rent out to tenants. A residential mortgage, on the other hand, is designed for people who plan to live in the property themselves.

With a buy-to-let mortgage, lenders will usually ask for:

• A larger deposit (typically 20 to 40%).
• Higher interest rates than standard residential mortgages.
• Proof that the expected rental income will comfortably cover the mortgage payments, often by at least 125 to 145%.

Many buy-to-let mortgages are interest-only, meaning you pay just the interest each month and repay the full loan at the end of the term, often by selling the property.

A residential mortgage is more about your personal affordability. Lenders look at your income, outgoings, and credit history to decide how much you can borrow. Most residential mortgages are repayment mortgages, where you pay off both the amount borrowed and the interest over time.

• Buy-to-let = investment property (rental income focus).
• Residential = home you live in (income and affordability focus).

It’s important to remember that you can’t live in a buy-to-let property without your lender’s consent - doing so could breach the terms of your mortgage.

A small portfolio landlord is someone who owns and rents out between two and four buy-to-let properties. They’re more experienced than a first-time landlord but don’t run a large property business. Lenders often assess small portfolio landlords differently, looking at their full rental income, existing mortgages and overall finances to make sure they can comfortably manage all their properties.

Yes, here at Nottingham Building Society we do offer buy-to-let mortgages. These are available through intermediaries, which means mortgage brokers can place buy-to-let applications with us.

If you’re looking for buy-to-let advice, we work with Mortgage Advice Bureau, who can help you find the right mortgage for your plans, including products from Nottingham Building Society.

You can book an appointment with a Mortgage Advice Bureau adviser using our online enquiry form. They’ll chat through your options and guide you from start to finish.