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Buy-to-let mortgages
A buy-to-let mortgage could kickstart your rental property portfolio or help you expand it. Find out how to apply and explore our buy-to-let deals today.
What is a buy-to-let mortgage?
A buy-to-let mortgage is a type of loan that can help you buy an investment property. It’s usually for people thinking about buying a property to rent out rather than live in.
They can be either repayment or interest-only mortgages. If it’s interest-only, you’ll only pay back the interest on your loan each month rather than the money you borrowed, known as the capital. At the end of the mortgage term, you’ll then need to repay the capital in full. You can do this by selling the property, using cash savings, or taking out a new mortgage.
It's your responsibility to make sure there's a plan in place to pay off the mortgage.
Steps to getting a buy-to-let mortgage
You could lose your property if you don’t keep up your mortgage repayments
Buy-to-let mortgage offers with Club Lloyds
As a Club Lloyds current account customer, you could a get discount off your initial buy-to-let mortgage rate.
- You must have a Club Lloyds current account open before you take out your mortgage. This includes our Silver and Platinum Club accounts.
- There is a £5 monthly fee for the Club Lloyds current account. We refund this each month you pay in £2,000 or more.
- The offer can be changed or withdrawn at any time.
- Exclusions and conditions apply.
What happens next on your buy-to-let journey?
Finding a conveyancer
This is the legal side of buying and selling a property. A licensed conveyancer or solicitor can help you with the ins and outs of this part of the buy-to-let process.
- You can use the Lloyds Conveyancing Service to compare quotes from our panel of up to 200 conveyancing professionals.
- Review quotes and choose a conveyancer based on what matters to you – whether that’s the price, the firm's location or their service rating.
Let’s look at the details
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The size of your deposit can vary depending on your lender’s requirements. You’ll typically need a deposit of at least 25%, giving you a loan to value (LTV) ratio of 75%.
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Yes, you’ll usually find that buy-to-let mortgage rates and fees are higher than standard residential mortgages. But, your monthly mortgage repayments may be lower if your deal is interest only because you’ll only be paying the interest. Repayment mortgages are different – you pay back the loan and the interest.
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If you’re looking to buy a property and rent it out rather than live in it yourself, you’ll need a specific buy-to-let (BTL) mortgage. BTL mortgages are usually interest only, so you’ll still need to pay the borrowed debt at the end of the term.
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Yes. If you’d like to move your buy-to-let mortgage to us from a different lender you can always remortgage. You can also remortgage to a buy-to-let from a residential mortgage if you’ve decided to rent out your property and live somewhere else. If your existing mortgage is fixed term, you may need to check for any extra fees.
Use the remortgage calculator.
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There are different regulations for residential and buy-to-let mortgages. Some conditions may state that you can’t live in the property if it’s intended for rental purposes. If you break this condition, your lender could ask you to repay the mortgage.
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