Buy to Let

Not all landlords are the same, but whether you’re an accidental landlord, buying your first investment property or you already have a portfolio of properties, we have buy-to-let mortgage advisors that can help you build your nest egg throughout the United Kingdom.

On the face of it, becoming a landlord seems a no-brainer. Once you find a flat or house at a good price, all you need to do is find tenants to pay the mortgage for you. Then, if all goes well, you sell it and sit on a pile of cash from the profit. Do this and you are putting your faith in the property market and you may well end up with most — if not all — of your assets tied up in bricks and mortar. Managing the property can come with a lot of stress. From tenants being unable to afford the rent, to sorting out faults and keeping the place in good order, even if you’re busy at work, or having to pay an agent to manage it for you, cutting into your return.

There is some risk involved with a buy-to-let decision, but we are always available by phone and e-mail to give expert advice. You will need to have a mortgage offer which is specifically for BTL properties, you can’t use a residential mortgage to fund it. We are here to help you choose a mortgage designed to meet your needs and maximize the benefits of owning an investment property.

There are two key things to bear in mind about borrowing for a buy-to-let:

1 - You can only borrow 75% of the property’s value. Whilst you will need a deposit for any property purchase, lenders for a BTL will require at least 25% deposit from your savings or equity from your own home.

2 - You need to yield a rental income that covers 145% of your mortgage payments at a set stress test rate. The surplus gives you a cushion against empty periods when you’ve no tenants and helps with maintenance costs. This rental income is usually calculated on mortgage payments more expensive than the ones you are making on a fixed term. Often lenders calculate your monthly payment using the rate you will move on to after a special short-term deal ends. Or will pick a higher notional rate, typically 6% or 7%, to allow for rate rises.

If you have more questions about your Buy to Let mortgage needs, please see our guide below and get in touch with one of our expert advisers.

**Your property may be repossessed if you do not keep up repayments on your mortgage.

Because we play by the book we want to tell you that...

Your home may be repossessed if you do not keep up repayments on your mortgage.

There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.

The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Helpful Guides

Buy to Let Guide

Find out more about landlord responsibilities, choosing the right mortgage, and much more.


"As a property investor myself I fully understand what is involved in negotiating a great deal with a seller and trying to get the best out of your investment. There are lots of different strategies to follow regardless of whether or not this is your first step into the Buy to Let Market or you are a seasoned Portfolio Landlord, Advice on investment properties can be complex and its more important than ever that you talk to an expert. Whatever your investment property aims are, at CARA Mortgage Services, with specially qualified Buy to Let Advisers on hand to help, we can help you make the most of your Buy to Let property journey."

Jeff Annal, Senior Mortgage & Protection Adviser