Some buy to let mortgages are not regulated by the Financial Conduct Authority.

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

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Whether you are looking to buy your first rental property or want to expand an existing portfolio, getting the right mortgage products and financial advice can make all the difference.

Speak to an experienced buy to let mortgage advisor and you stand a much greater chance of successfully expanding your portfolio and maximising your profits. Choose the wrong option, and you risk experiencing void periods and being unable to offset the management and maintenance costs of the property.

The buy to let sector is currently the fastest growing part of the UK market, so it’s essential you choose an advisor who is not tied to any particular bank or building society. We have access to products that are unavailable to individuals, allowing us to comb the market in search of the right deal for your own unique circumstances.

We can also help you with protection insurance and advise you on how to successfully and profitably manage your rental property.

Ready to begin your buy to let journey or take your portfolio to new heights? Speak to our experienced team of buy to let mortgage brokers in Northampton today.

What is a Buy to Let Mortgage?

A buy to let mortgage is designed for individuals who purchase property as an investment, instead of acquiring one for their own residence. They operate differently compared to regular residential options.

When deciding to rent out your property, lenders will usually recommend using buy to let to fund your purchase.  

How Do Buy to Let Mortgages Work?

  1. Put down a deposit — Typically, the deposit is at least 25% of the property’s value, but it can range from 20% to 40%.  
  2. Interest-only payments — This form of payment ensures that you will only pay the interest monthly, not the full capital amount.  
  3. Pay back the amount —  At the end of the mortgage term, the borrower must repay the full amount of the loan.

Why Get a Buy to Let Mortgage?

There are very attractive yields to be had when investing in property via a buy to let mortgage, but it should not be seen as an easy way to make money. This sector of the market is becoming increasingly more complex. However, with the right advice, knowledge and attitude from your buy to let advisor, it can be very profitable.

How Much Deposit Do I Need For a Buy to Let mortgage?

These deposits are generally higher compared to other types of mortgages due to the higher risks involved. The interest rates for buy to let mortgages may vary. Strictly speaking, a larger deposit is required. The amount of the deposit plays a crucial role in determining the options of deals that are accessible. Usually, a deposit of 15-20% of the property’s value is necessary.  However, this percentage can change depending on the lender’s requirements and individual situations.  

What to Consider Before Getting a Buy to Let Mortgage

Before applying for a buy to let mortgage, it’s important to understand the following:

  • You might need landlord insurance. We can help with this.
  • You will typically need a larger deposit — usually 20% to 25% of the property’s value.
  • You will be offered a mortgage based on the rent potential of your property (how much rent you will earn from the property).
  • Additional costs to consider include maintenance costs, letting agent’s fees, management service fees, ground rent, service charges, insurance, furnishings, gas and electrical appliances. Plus potential cleaning anddecorating costs in between tenancies.

If you’d like to discuss any of this with our Northampton mortgage advisors, give us a call — we’re happy to help.

Am I Eligible?

Lenders view this mortgage deal as more risky due to its unique characteristics compared to conventional residential mortgages. Instead of focusing solely on personal income, lenders consider the rental income that will be generated when assessing eligibility.  The maximum loan you can receive depends largely on the expected rental income from your tenant(s).   

However, similar to residential mortgages, lenders will also consider your personal situation, including factors such as your age, income, down payment, and borrowing track record.    

If you are unsure about your eligibility for a buy to let mortgage, contact one of our advisors today for professional advice at no cost.  

Tailored Buy to Let Advice in Northampton

Instead of just finding you a cheap mortgage deal, at Derngate Wealth we carefully consider your personal circumstances and goals. Our mission is to find a mortgage that’s right for you - one that can help you achieve your long-term aims.

Our experienced buy to let mortgage advisors in Northampton can help you decide what you hope to achieve by becoming a landlord. Perhaps you’d like to create another income stream? Or maybe you are looking to make a profit through increased equity, as the property increases in value over time.

Your aim, along with other key factors, will determine the type of property you buy and its location. That’s why it’s important to talk to letting agents to find out what is in demand, and the rental value of the different types of properties available.

For hands-on, practical and jargon-free advice that helps you achieve your goals, talk to us today.

Why Choose Us?

  • Jargon-free, transparent advice that’s easy to understand
  • Services are tailored to your individual needs and circumstances
  • Excellent value for money
  • We’re not tied to one lender - a wide range are available to choose from
  • We cover the whole of Northampton, including Kingsthorpe, West Hunsbury and Collingtree
  • We have a great reputation - read some of our latest reviews below

Quick Buy to Let Mortgage Enquiry

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“ I found the company really helpful friendly and approachable. Rob was amazing very professional and friendly felt very at easy with him. Will definitely tell friends and family.”
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“ Rob was so helpful and amazing with our application. We can't thank him enough for making this such a straightforward process. He was on top of everything and we did everything and more to support us.”
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“ Excellent communication throughout and looked after me and my curcumstances.”
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Frequently Asked Questions

Can a first time buyer get a buy to let mortgage?

Yes, but fewer mortgages will be available to you if you’ve not owned a home before.

What is the minimum deposit for a buy to let mortgage?

Typically, upwards of 20% of the property’s value - significantly more than for normal mortgages.

Are buy to let mortgages more expensive?

Yes, buy to let mortgages are more expensive. This is due to the higher deposit and interest rates associated with them, as lenders see them as riskier loans.