Buy to Let Mortgages for Property Investors
Thinking of investing in property? The buy-to-let market has well and truly got back on its feet after a challenging couple of years. At dwello, we're seeing a new influx of first-time landlords alongside experienced portfolio builders, and there are more than enough products available for any type of application you need.
Whether you're looking to convert your current home when you move, add to an existing portfolio, or take your first step into property investment, we'll guide you through the process and help you make the right decisions for your long-term goals.
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Who is Buy to Let for?
We're seeing a fascinating mix of clients in the modern market:
Let to buy or home movers
Looking to keep their first property as an investment when they move to their forever home, rather than selling up.
Young investors
who view property as an investment vehicle first. Instead of buying their first residential property, they're using gifts from family to get that crucial 25% deposit and start building a portfolio early.
Existing homeowners
Ready to expand into investment property as a second income stream or pension planning strategy.
Experienced portfolio
Landlords looking to remortgage existing properties or add to their collection.
The key is understanding your long-term goals -- whether this is a one-off investment, the start of a portfolio, or part of your retirement planning.
The key is understanding your long-term goals -- whether this is a one-off investment, the start of a portfolio, or part of your retirement planning.
Deposit Requirements & Lending Criteria
The minimum deposit for most buy-to-let mortgages is 25% of the property value. For landlords who are slightly cash-strapped, we can access specialist lenders offering 20% deposit options, but we'd always recommend aiming for that 25% if possible.
Here's the crucial bit that many people misunderstand: buy-to-let mortgages aren't based on your income alone. They're assessed on the property's ability to pay for itself through rental income.
The magic number? 125% rental coverage. This means if your mortgage payment is £1,000 per month, the rental income needs to be at least £1,250. This rental coverage ratio ensures the property generates enough income to cover the mortgage with a buffer for void periods and maintenance.
Lenders will typically arrange a desktop valuation to assess both the property value and realistic rental income. If your projected rental seems high for the area, they might require supporting evidence from local estate agents.
How dwello Supports Landlords
We're seeing a fascinating mix of clients in the modern market:
We understand the whole market.
From first-time landlord-friendly lenders to those specialising in large portfolio applications, we know who's lending what and to whom.
We make the process streamlined.
Buy-to-let underwriting is actually more straightforward than residential mortgages because underwriters are assessing the property's affordability, not complex personal circumstances. When the rental income and property value stack up, these applications tend to be quite stress-free.
We think about your bigger picture.
Whether you're looking at HMOs for maximum rental yields, considering company vs personal structures, or planning a multi-property strategy, we'll help you make decisions that work long-term.
We handle complex cases.
From remortgaging large portfolios to structuring first-time investments with family gifts, we've seen it all and know how to get deals done efficiently.
Limited Company vs Personal Ownership
This choice affects everything from mortgage rates to tax bills, so it's worth getting right from the start.
Personal
Consider personal ownership if:
This is likely to be a single investment or small portfolio
You want the lowest mortgage rates and fees
You're not concerned about inheritance tax implications
You're not concerned about inheritance tax implications
Limited
Consider limited company if:
You're planning to build a substantial portfolio
You're a higher-rate taxpayer
You don't mind slightly higher borrowing costs for better tax efficiency
You don't mind slightly higher borrowing costs for better tax efficiency
Remember, you'll still sign personal guarantees either way, so the "limited liability" aspect is somewhat theoretical when it comes to mortgage lending.
Buy to Let FAQs
All your questions answered...
What rental yield should I be targeting?
How long does a buy-to-let mortgage application take?
Can I get consent to let when I move?
What if I've never been a landlord before?
The information contained in this article does not constitute financial or mortgage advice from Dwello Mortgages. It is provided for general informational and educational purposes only. No information contained constitutes a solicitation, recommendation, endorsement or offer by Dwello.
Dwello is not making any representations or warranties, and assumes no liability, for the content provided in this article, including any third party information. Consumers should always consult their own financial advisors before making any mortgage or remortgage decisions based on this type of general market commentary and analysis.
All mortgage pricing, rate scenarios and cost comparisons used are hypothetical examples. Actual rates, fees and mortgage costs may vary based on the specific lender and the individual borrower's personal financial circumstances.
Dwello Mortgages, a trading style of Dwello Mortgages Limited is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Dwello Mortgages Limited is registered in England and Wales with company number 14432864. Registered Office: St James House, Hollinswood Road, Telford TF2 9TW
Dwello is not making any representations or warranties, and assumes no liability, for the content provided in this article, including any third party information. Consumers should always consult their own financial advisors before making any mortgage or remortgage decisions based on this type of general market commentary and analysis.
All mortgage pricing, rate scenarios and cost comparisons used are hypothetical examples. Actual rates, fees and mortgage costs may vary based on the specific lender and the individual borrower's personal financial circumstances.
Dwello Mortgages, a trading style of Dwello Mortgages Limited is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Dwello Mortgages Limited is registered in England and Wales with company number 14432864. Registered Office: St James House, Hollinswood Road, Telford TF2 9TW
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Dwello Mortgages Limited, St James House, Hollinswood Rd, Telford TF2 9TW
