Buy to Let Mortgage Guide

If you want to buy a property to rent out rather than live in, a Buy to Let mortgage (BTL) can help you get there. It's specially designed for anyone looking to become a landlord or add to their existing property portfolio.

Whether you're an experienced landlord – or it's your first buy to let property – Leeds Building Society has a range of Buy to Let mortgages available. Besides helping you purchase a buy to let property, we're also here if you'd like to remortgage from another lender.

Our Buy to Let mortgage calculator can help you work out how much a Buy to Let mortgage will cost you and how much you can borrow. It's just part of our Buy to Let Mortgage Guide which is designed to answer some of the most frequently asked questions we hear from our members.

What is a Buy to Let mortgage?

Just like an ordinary mortgage, a Buy to Let mortgage is designed to let you buy a property. But there are some key differences:

• With a Buy to Let mortgage you don't live in the property, you rent it out to others. It's for people looking to invest in property and then make money from the rent paid by tenants.
• The amount you can borrow with a Buy to Let mortgage will depend on how much rent you expect to get from the property.
• You generally need a bigger deposit with a Buy to Let mortgage and interest rates tend to be higher than a residential mortgage.

How do Buy to Let mortgages work?

Typically, Buy to Let mortgages are a bit more expensive than the type of mortgage used to buy your own home. That's because traditionally, lenders see getting rent from tenants to be more of a risk that a homeowner making their own monthly mortgage payments. You also need to be aware that lenders will take into account extras such as maintenance costs, agent's fees and landlord's insurance when working out how much you can borrow.

Who can get a Buy to Let mortgage?

A Buy to Let mortgage can be for someone who wants to become a professional landlord or already owns properties and wishes to add to their portfolio. Others who may need to apply for a Buy to Let mortgage are ‘accidental landlords' – those who own their home but would like to rent it out. If it's for less than a year, you can apply for a Consent to Let. For longer than this period, you may want to think about switching to a Buy to Let mortgage.

How much can you borrow with a Buy to Let mortgage?

The amount you can borrow with a Buy to Let mortgage is calculated in a different way to most other mortgages:

• Your mortgage amount is based on how much income you will earn from renting out the property.
• This is what's called your Income Coverage Ratio – it's there to make sure your rental income is enough to cover the total cost of your mortgage and associated fees.
• Lenders also use something called a ‘stress rate'. This factors in your income and existing debt to calculate whether you could afford a higher rate of interest.

Our Buy to Let mortgage range

Here's where you'll find our current range of Buy to Let mortgages:

View our Buy to Let mortgages

How can I apply for a Buy to Let mortgage?

Need help and support with your Buy to Let mortgage?

If you'd like some assistance with your application – or you have any questions you'd like to ask – why not speak to one of our Mortgage Assistants?

Call to speak to one of our Mortgage Assistants: 03450 50 50 62 (press option 2)