Buy to Let Mortgages
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Buy-to-Let Mortgage Services

Thinking about investing in a rental property? A buy-to-let mortgage can help make your plans a reality. Whether you’re just starting out as a landlord or adding to your portfolio, we’re here to help you find the perfect mortgage to suit your needs.

What is a Buy-to-Let Mortgage?

Buy-to-let mortgages are designed for properties you plan to rent out. They’re a little different from regular residential mortgages. For example:

  • You’ll need a bigger deposit, typically 20–40% of the property’s value.
  • Interest rates tend to be higher.
  • The expected rental income needs to cover at least 125–145% of the mortgage repayments.

Who Can Apply?

You could be eligible for a buy-to-let mortgage if you:

  • Are buying a property to rent out.
  • Meet the lender’s income requirements.
  • Have a suitable deposit ready.

What to Keep in Mind

When choosing a buy-to-let mortgage, here are some key things to consider:

  • Rental Income: Make sure your rent will comfortably cover the mortgage payments.
  • Repayment Options: Decide whether you want an interest-only mortgage (lower monthly payments) or a repayment mortgage (build equity over time).
  • Costs and Taxes: Be aware of extra expenses, including Stamp Duty, maintenance, and taxes on rental income or property sales.
  • Insurance: Protect your property with landlord insurance to cover things like damage or legal liability.
  • Management: Think about whether you’ll handle tenants yourself or use a letting agent to save time.
  • How Will the Property Be Used: If you plan to rent your property to a single tenant or a family under a simple rental agreement, you’ll likely have access to a wide range of buy-to-let mortgage options. However, if you’re considering investing in student housing, a House of Multiple Occupation (HMO), or a holiday let, your mortgage choices may be more limited.
  • Solicitors’ Fees: You’ll need to hire a solicitor to manage the legal side of your property purchase and mortgage. Some charge a fixed fee, while others bill by the hour.
  • Mortgage Costs: Setting up a buy-to-let mortgage comes with several potential costs, including:
  • Broker Fees: If you work with a specialist broker for guidance and support, there may be a fee for their service.
  • Booking Fees: Some lenders require a non-refundable deposit to secure the deal.
  • Arrangement Fees: Many lenders charge a fee upon completion, which can often be added to the mortgage. Keep in mind this will increase your total loan amount.
  • Valuation Fees: Before approving your loan, the lender will value the property to ensure it matches the amount you wish to borrow. Some lenders include this as part of their mortgage deal.

If you’re unsure about the property’s condition, consider a more detailed homebuyer or RICS survey to check for structural or maintenance issues. These surveys cost more but provide valuable insights into the property’s long-term value.

If the property is valued below your expected purchase price, you can:

    • Negotiate a lower offer with the seller or agent.
    • Challenge the valuation by providing evidence of similar property sales in the area.
  • Exit Fees
    Check your current terms if you’re switching lenders or paying off an existing mortgage early. You may need to pay early repayment or exit charges, especially if you leave before the deal’s agreed term ends.

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What Are the Risks?

Every investment comes with risks, and buy-to-let is no exception. Here are a few to be aware of:

  1. Empty Property: If the property is vacant, you’ll still need to cover the mortgage payments.
  2. Rising Interest Rates: Your monthly costs could increase if rates go up.
  3. Tenant Problems: Late rent or property damage can impact your income.
  4. Unexpected Repairs: Maintenance and repairs can be costly, so it’s smart to have a backup fund.
  5. Market Changes: Property values and rental demand can fluctuate, affecting your returns.

Can You Get a Buy-to-let mortgage with Adverse Credit?

Yes, getting a buy-to-let mortgage is possible, even if you have a less-than-perfect credit history. While it can be more challenging, there are lenders who specialise in helping people with adverse credit secure a mortgage.

Improve your chances by:

Showing Strong Rental Income Potential: Lenders want to see that the expected rental income comfortably covers the mortgage repayments (typically 125–145%).

Provide Proof of Financial Stability: Demonstrating a steady income and good financial habits since your credit issues can help your case.

Why Work with Us?

Finding the right mortgage can feel overwhelming, but we’re here to make it simple. Here’s how we can help:

  • Expert Support: Our team knows the buy-to-let market inside and out, giving you clear advice you can trust.
  • Wide Range of Choices: We work with many lenders to find the best deal for you.
  • Tailored Advice: We help you choose a mortgage that matches your goals, whether buying your first property or expanding your portfolio.

Our Simple Process

We’re with you every step of the way to make the process easy and stress-free:

  1. Chat with Us: Tell us about your plans and what you need.
  2. We Do the Research: We’ll find options that fit your goals and budget.
  3. Smooth Application: We’ll guide you through the paperwork and handle the details.
  4. Celebrate Success: Once approved, we’ll make sure everything is set up so you can start earning rental income.

Ready to Start?

Let’s find the right buy-to-let mortgage for you. Get in touch today and take the first step toward achieving your property investment goals.

Remember, property investments involve risks, so it’s always a good idea to seek professional advice.

Buy to Let Mortgages
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.

Buy to Let Mortgages
Find out if you qualify in less than a minute. It won’t affect your credit score!
Get started

Getting you the right mortgage
We are confident that we can find you a lender, but you may not feel it’s the right mortgage for you. Whether the repayments are too high, or the deposit requirement is too much, we will help you to understand what you need to do, to get the right deal.

No broker fee mortgage
We appreciate the financial benefits of a mortgage from a high street lender, so will help our clients understand what it takes to get one.  Once their credit file is repaired and the mortgage we previously arranged for them is up for renewal, we will help them celebrate their successful application with a high street lender, by waiving our broker fee.


Can’t find what you are looking for?
Call us or complete the form on our contact page with any questions
01268 294777 Get in touch
FAQs

If you have questions about getting a mortgage with an adverse credit score, read our FAQs. Our wealth of knowledge within this market means that we’re confident in our ability to offer specialist mortgage advice and secure the mortgage you want regardless of your credit history.

Read more FAQs
What is an IVA?

An IVA, or Individual Voluntary Arrangement, is a formal deal between you and your creditors to pay off your debts over time.

You work with a specialist who figures out how much you can afford to pay each month. If creditors holding at least 75% of your debts agree to the plan, it becomes legally binding.

You make regular payments, usually over five to six years, and any remaining debt at the end is typically written off.

It's a way to avoid bankruptcy while still managing your debts, but it's important to get advice before committing to one as the effects this will have on your credit file is severe and it can impact your credit file for much longer than a Bankruptcy.

Can I get a mortgage if I am currently in an IVA?
Yes, however it is very difficult. The lender will insist that the IVA is settled prior to your solicitor requesting to draw on the mortgage funds and you will also require a minimum 30% deposit. However, if it is a Shared Ownership Mortgage you are after, these are not available for people who are currently in or have been in an IVA in the past 6 years.
What steps should I take to get a mortgage with an IVA?

Getting a mortgage with an IVA (Individual Voluntary Arrangement) can be extremely challenging, but it's not impossible. Here are some steps you can take:

  1. Complete your IVA: Wait until your IVA is finished and discharged, which usually takes about five to six years.
  2. Improve your credit score: Focus on demonstrating responsible financial management. Pay bills on time and avoid applying for unnecessary credit in an attempt to boost your credit score.
  3. Save for a deposit: The more you can put down as a deposit the better. The minimum amount you will require will depend on how long you have been discharged from your IVA.
  4. Speak to a Bad Credit Mortgage Specialist: There are very few lenders that will consider an application from somebody that has been discharged from their IVA for less than 3 years. A Bad Credit Mortgage Specialist will know the lenders that will consider mortgages for people in your situation, and they can give you accurate advice about how to increase your chances of success.
  5. Show financial stability: Provide proof of steady income and a strong employment history, having multiple jobs over the past couple of years can send out the wrong message.
  6. Be realistic: Understand that obtaining a mortgage with an IVA will come with higher interest rates, larger deposit requirement and stricter lending criteria. Be prepared for the possibility of having to pay higher fees or accept a smaller mortgage amount than you might have hoped for.

By following these steps and seeking professional advice, you can improve your chances of successfully obtaining a mortgage with an IVA on your credit record.

How long after an IVA can I get mortgage?

It is possible to apply for a mortgage whilst you are currently in an Individual Voluntary Arrangement (IVA). Some lenders will even allow them to continue to run alongside the mortgage under certain circumstances, as long as the conditions of the IVA continue to be met.

However, generally lenders will want the IVA to be settled prior to your new mortgage beginning, this can be for a few reasons.

  • Conditions set by IVA
  • Affordability
  • Lending criteria set by the lenders funders.

Once you have been discharged from your IVA (it’s been repaid), you will find yourself in a better position with the number of lenders that will now consider your application.

However, you can still expect to pay higher interest rates whilst the IVA is still showing on your credit file & insolvency register. 

The deposit you are likely to need with an IVA on your credit file is as follows:

  • 30% deposit – currently in an IVA or completed less than 12 months.
  • 25% deposit- completed over 12 months.
  • 20% deposit – completed over 24 months.
  • 5% deposit – completed over 36 months, providing no other negative markers on your credit file.
I am currently in an IVA can I apply for a Right to Buy mortgage?
Unfortunately not, there are currently no lenders that will accept your application until you have been discharged from your IVA for 3 years.
Will IVA affect my mortgage?

An Individual Voluntary Arrangement (IVA) will impact on your ability to obtain a mortgage. An IVA is a formal agreement between an individual and their creditors and are arranged by IVA practitioners.

Having an IVA on your credit file will make it more difficult to be approved for a mortgage and will also result in higher interest rates and your application be underwritten with more stringent lending criteria. Lenders will assess your current financial situation to determine if you should be approved for a mortgage.

However, there is potential to get a mortgage with an IVA. Our team at Adverse Mortgage Advisors work closely with their clients and the lender to ensure the best possible application is submitted to the lender. It is this attention to detail that has enabled us to deliver many successful applications for our clients where they never believed it would be possible.