Buy to Let
Looking to invest in property? Option Finance offers expert advice and access to competitive buy-to-let mortgage deals whether you’re a first-time landlord or building a portfolio.
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Why Option Finance?
No.1 Buy to Let Mortgage Advisors
At Option Finance, we believe property investment shouldn’t be out of reach no matter your credit history. That’s why we specialise in helping landlords secure the right buy-to-let mortgage, combining expert financial guidance with a personal approach that puts your goals first. Whether you’re building a portfolio or buying your first rental, we’re here to help you move forward with confidence.
Our Guides
Buy to Let Mortgage Guides
Thinking of investing in property but worried about your credit history? You’re not alone and you’re not out of options. At Option Finance, we support landlords with complex credit backgrounds, including CCJs, defaults, IVAs, and even discharged bankruptcies. While other lenders might say no, we specialise in finding a way forward. Discover how our tailored buy-to-let solutions can help turn your investment plans into reality.
Buy-to-Let Remortgage
Buy-to-Let Remortgages For landlords and property investors, a buy-to-let remortgage offers an opportunity to improve the terms of their mortgage, access additional funds, and optimise rental investments. This comprehensive guide explores what a buy-to-let remortgage...
Buy-to-Let Repayment Mortgages.
Buy-to-Let Repayment Mortgages A buy-to-let repayment mortgage can be an attractive option for landlords who wish to secure long-term investment gains and build equity in a rental property. Although many landlords opt for interest-only buy-to-let mortgages, repayment...
Buy-to-Let Mortgages for First-Time Buyers.
Buy-to-Let Mortgages for First-Time Buyers Investing in property as a first-time buyer is an exciting prospect, especially in the UK’s thriving rental market. However, securing a buy-to-let (BTL) mortgage as a first-time buyer comes with unique challenges. For many,...
Mortgages For Holiday Let
Mortgages For Holiday Lets With the rise in demand for staycations and short-term rental properties, holiday let investments have become increasingly popular among property investors. However, purchasing a property for short-term rental purposes requires a specific...
Interest Only Buy To Let Mortgage
An interest-only buy-to-let mortgage is a popular choice among landlords, allowing them to keep monthly payments low by paying only the interest during the mortgage term. Buy to let interest rates play a crucial role in determining the affordability and attractiveness...
How It Works
Simple Process to Find Out Where You Stand
At Option Finance, technology doesn’t replace the personal touch—it enhances it. We use smart tools to handle the admin, so our team can focus on what really counts: listening to your story, understanding your needs, and securing the mortgage that’s right for you. Real people. Real support. No shortcuts.
Why Work with Option Finance for Bad Credit Mortgages?
At Option Finance, we specialise in mortgages for complex credit scenarios. Our team works with all major bad credit lenders and has access to exclusive deals that aren’t available on the high street.
Understanding one’s credit report from a credit reference agency can help in securing a mortgage.
Over 20 years of experience
Full market access to specialist lenders
Fast, honest, and personalised mortgage advice
Expert help with complex or recent credit issues
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What is a buy-to-let mortgage?
A buy-to-let mortgage is designed for those buying a property to rent it out. It works similarly to a standard mortgage you put down a deposit and borrow the rest from a lender but the criteria, rates, and deposit requirements are often different. Most lenders will require a deposit of at least 25% and assess the rental income potential of the property.
How much could I borrow?
Unlike residential mortgages, buy-to-let borrowing is primarily based on rental yield. Lenders want to see that the rental income will not only cover the mortgage repayments but also an additional 25%–45% buffer to allow for taxes, insurance, and maintenance.
If you’re buying through a limited company, lenders may also assess your business finances. A higher rental yield and strong financials can increase your borrowing potential.
Buy-to-let vs. residential mortgages
- Interest rates: Typically higher for buy-to-let due to increased risk
- Repayment type: Often interest-only rather than capital repayment
- Fees: Usually higher and percentage-based
- Deposit: 25% minimum in most cases
- Criteria: Stricter, often including proof of experience or income
- Loan calculation: Based on rental income more than personal affordability
- Regulation: Most buy-to-let mortgages are not regulated by the FCA
How to get the best buy-to-let rates
The bigger your deposit, the better the rate. While 25% is the minimum, putting down 40% will reduce your loan-to-value (LTV) to 60% which can unlock much more competitive deals.
Types of buy-to-let mortgages
- HMO Buy-to-Let: For Houses of Multiple Occupancy, such as student rentals. Not all lenders offer this, but it can be a higher-yield investment.
- Limited Company Buy-to-Let: Increasingly popular due to tax advantages. These mortgages are usually arranged under a Special Purpose Vehicle (SPV).
- Let-to-Buy: Allows you to rent out your current home and buy a new residential property. This involves managing two mortgages at once.
- Regulated Buy-to-Let: If renting to family or becoming an accidental landlord, you may qualify for a regulated or consumer buy-to-let mortgage with extra protections.
Can I get a buy-to-let mortgage?
Yes and we can help you get the right one. While each lender has their own criteria, most will look at:
- Age: Typically 21–25 minimum. Some lenders are flexible with upper limits.
- Home ownership: Preferred by many lenders, but not essential.
- Income: Some lenders have a minimum income threshold, while others focus solely on rental income.
- Rental yield: This is key. Lenders often want rental income to cover 125%+ of mortgage repayments.
- Credit history: Stronger credit helps, but there are specialist lenders for those with adverse credit.
Buy-to-let tax liabilities
Tax plays a big role in buy-to-let profitability. If you own another property, you’ll usually pay a second-home stamp duty surcharge:
- England & Northern Ireland: 5% surcharge on top of standard SDLT
- Scotland: 8% surcharge on top of LBTT
- Wales: Rates vary based on price bands
You may also pay income tax on rental profits and Capital Gains Tax when selling. If in doubt, speak with a tax advisor to plan your investments wisely.
How to apply for a buy-to-let mortgage
- Research: Understand local rent values, demand, and running costs.
- Plan your repayment: Know how you’ll pay back the loan at term-end, especially for interest-only mortgages.
- Prepare your documents: Proof of deposit, income, ID, and letting income forecast. Companies need accounts and tax records too.
- Get a mortgage in principle (MIP): We’ll help you find out how much you could borrow.
- Secure your deal: Use your MIP to make an offer, and we’ll find the best deal from our whole-of-market lender panel.
Can I remortgage a buy-to-let property?
Yes. When your current deal ends, your lender usually moves you to their standard variable rate (SVR), which is often higher. Remortgaging could save you money and free up equity.
Whether you stay with your current lender (product transfer) or switch to a new one, Option Finance can compare all your options and guide you to the most cost-effective solution.
Act now to secure your rate
Buy-to-let mortgage rates can change quickly. If you’re planning to invest or already have a property now is a great time to review your options.