Buy-to-Let Mortgage Lenders

If you’re an investor looking to secure a buy-to-let mortgage, you might be wondering which lenders are best for the job. Here, we look at the different types of lenders available for buy-to-let and explain how to choose the right one.

What is a buy-to-let mortgage lender?

A buy-to-let mortgage lender is a mortgage provider that specialises in finance for landlords. While many high street lenders can offer these services, some borrowers are best served by providers that focus solely on the buy-to-let sector and have a track record in that space.

The main difference between general high street lenders and lenders that specifically offer buy-to-let mortgages is that:

• Buy-to-let specific lenders are more likely to allow top slicing - which enables you to declare your personal income to make up a shortfall between the mortgage payments and the expected rental income

• They are less likely to have high minimum rental income requirements of 145% of the mortgage repayments, and more likely to accept 125%

• They are more likely to offer a higher loan-to-value loan (above 70% LTV), meaning you may not need such a high deposit

• They are more likely to accommodate first-time landlords and portfolio landlords

• It can be easier to mortgage more complex buy-to-let options, such as HMO and MUFB properties

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Who are the best buy-to-let mortgage lenders?

While the best mortgage lender for you will depend on your specific need, those lenders that specialise in or deal exclusively in buy-to-let may be more likely to be able to help you.

Criteria can vary substantially even between buy-to-let lenders, it’s important to speak to a knowledgeable broker, like ourselves, to find the most suited lender for your needs.

Here are some examples of UK lenders that either specialise in, or exclusively deal in buy-to-let mortgages:

1. West One Loans

West One Loans is a specialist lender offering buy-to-let mortgages, commercial mortgages and bridging loans up to a maximum borrowing amount of £10 million across a portfolio. They are a good option for portfolio landlords, as there is no limit on the number of properties they can hold, as long as total borrowing doesn’t exceed the maximum limit.

They can also offer a lot of flexibility in terms of the types of property they will lend on, and will consider both individual and limited company buy-to-let applications. They have no minimum income requirement and can offer a maximum of 80% LTV.

2. Godiva Mortgages

Specialising in buy-to-let mortgages for both individual and portfolio landlords, Godiva Mortgages is only accessible through an intermediary. This means you’ll need to use a broker like us to arrange a mortgage with them. They provide buy-to-let loans at a maximum of 75% LTV and consider bad credit applications.

They predominantly offer fixed-rate buy-to-let mortgages, but also have some tracker options available. If you’re looking to improve your EPC rating by making your investment property more economical, Godiva can help you to access additional borrowing to make these updated through their green mortgage range.

3. Accord mortgages

Accord Mortgages are another lender that can only be accessed through an intermediary, like ourselves. They offer a range of buy-to-let mortgages at competitive rates and have fairly flexible criteria, so can be a good option for borrowers with minor credit issues and non-standard income structures.

Accord has a maximum LTV of up to 80% on buy-to-let mortgage applications, but may accept top slicing in some cases. The maximum combined borrowing total is £3 million for landlords with a portfolio of up to 10 mortgaged buy-to-let properties, and £1 million for first time landlords.

4. The Mortgage Works

The Mortgage Works specialises in buy-to-let mortgages for both independent buy-to-let landlords and portfolio landlords. They accept applications from both individuals and limited companies, and will consider some more complex buy-to-let property types, such as HMO (House of Multiple Occupancy).

They have a maximum LTV of 75%, but this may be increased to 80% for those qualifying as for a green mortgage through a high EPC rating. They may also consider some bad credit buy-to-let mortgage applications.

5. BM Solutions

Formerly Birmingham Midshires, BM Solutions is the buy-to-let mortgage arm of Lloyds Banking Group, launched in the summer of 2021 following a rebranding.

They offer a wide range of fixed-rate deals with introductory periods ranging between two and five years. The lender is also offering let-to-buy deals with the same product type and introductory rates periods, and other specialist products like green buy-to-let mortgages.

In addition to this, BM Solutions offers product transfers and further advances for existing customers, all done through mortgage brokers. They also offer exclusive deals for portfolio landlords and will allow top slicing for customers who fit the criteria.

6. CHL Mortgages

CHL Mortgages is a lender that specialises solely in buy-to-let mortgages and offers them exclusively through intermediaries like Teito.

They offer standard buy-to-let mortgages to individuals and limited companies, as well as HMO and multi-unit freehold block mortgages for properties with up to six bedrooms. Their mortgages come with either two or five-year introductory rate periods.

Let-to-buy lenders

Let-to-buy mortgages are very niche, and not offered by all buy-to-let lenders. In fact, a let-to-buy arrangement is where you have two mortgages at the same time for different purposes. Sometimes these are with the same lender, and sometimes they’re not. Accord and The Mortgage Works both offer let-to-buy options.

Lenders for limited company BTL

If you’re a portfolio landlord, or looking to buy investment property through your business, you’ll likely need a limited company buy-to-let mortgage lender. Some high street lenders tend to shy away from limited company lending, but specialist lenders such as MT Finance and building societies like Bath Building Society may be able to help.

Consumer BTL lenders

Consumer buy-to-let mortgages, sometimes known as ‘accidental landlord mortgages’. Some high street lenders like NatWest offer them, however, specialist lenders, such as Vida Homeloans and CHL Mortgages may have more flexible criteria.

Lenders for specialist property types

If you’re looking to buy a HMO or MUFB style buy-to-let property, or even purchase a holiday let, specialist lenders are typically the way to go. Vida Homeloans and Kent Reliance both offer mortgage options for MUFB properties, although criteria vary. Paragon also offers both MUFB and HMO buy-to-let mortgages.

Do high street lenders offer buy-to-let mortgages?

Some high street mortgage lenders offer buy-to-let mortgages, although they tend to be less flexible with their criteria than specialist lenders. The following high street lenders may be able to offer buy-to-let mortgages to some borrowers:

• Barclays: Will offer up to 6 buy-to-let mortgages at a maximum of 75% LTV, so long as the combined borrowing does not exceed £4.5million

• HSBC: Offer buy-to-let mortgages with a maximum LTV of 75%

• Santander: Offers applicants with an income above £25k buy-to-let loans with a maximum of 75% LTV

• NatWest: Offer buy-to-let mortgages at up to 75% LTV to landlords with a maximum portfolio of 4 investment properties

How to choose the right lender for your buy-to-let mortgage

As well as finding the best rates, it’s important to find buy-to-let mortgage lenders with criteria that match your circumstances and those of the investment property you hope to buy. There are many intricacies in the criteria of each lender, so using a broker with expertise in buy-to-let mortgages, like Teito, can be instrumental in securing the right loan for you.

At Teito, we allow you to compare buy-to-let mortgage rates for free, but also provide specialist broker support to help progress your application. Many specialist buy-to-let lenders are only accessible through an intermediary (or broker), so this can be key to your success.

We offer:

• A free initial consultation with no obligation

• Exclusive rates and deals are available

• 5-star rated services, as determined by leading review websites

• Brokers who specialise in all areas of buy-to-let investment purchase

Ready to compare the latest rates from UK buy-to-let lenders and book a free, no-obligation chat with one of our experts? Get started here.