Buy-to-Let Mortgages

A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).

More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.

There are many potential benefits to investing in property and the financial returns can be twofold: there is the potential for capital growth if the value of the property appreciates and the property may also yield a regular rental income.

Cost of Buy-To-Let Mortgages

Buy-to-let mortgages are usually more expensive than residential mortgages, as lenders often consider them to have a higher associated risk. However, any difference can usually be balanced by rental yield. Although some lenders will limit the number and /or total value of buy-to-let mortgages available to an individual, others may provide services to help private investors expand their property portfolio.

Today there are plenty of competitive buy-to-let mortgage deals available that are specifically aimed at the buy-to-let market, ranging from special offer buy-to-let mortgage deals to fixed and variable rate options.
In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.

When you take out a buy-to-let mortgage, you will be expected to meet certain criteria and you will be required to put down a deposit which will be typically larger than for a standard residential mortgage, usually 15-25% of the property’s value.

Rental income

Your expected rental income must exceed your buy-to-let mortgage repayments by a certain percentage – for example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments.
Your buy to let mortgage lender will also want to establish whether the property you are buying is a good long-term investment.

At Carter Lee we have proven track record in sourcing buy-to-let mortgages for individuals looking to invest in the property market for the first time as well as for established investors who already have a property portfolio.

As we have access to a wide range of lenders who support buy-to-let mortgages, you can be sure that you’re getting the right guidance for you or your businesses. We will provide advice and guidance throughout the whole process making your buy-to-let investment work for you from the word go.

For more information about buy-to-let mortgages, call Carter Lee on 01792 416260 or email us with your specific enquiry at

Your home may be repossessed if you do not keep up repayments on your mortgage.