UK Landlord Forum / Life

Hi

I am having great difficulty finding any bank or building society willing to advance a mortgage on a buy-to-let property.
Does anyone know of one that will?

Talk to a mortgage broker.

Agree with jpkeates — a whole-of-market mortgage broker is the way to go. Most high street banks have tightened up on BTL lending in the last couple of years, so going direct is a frustrating experience.

A couple of things that might help:

- If you're buying in personal name, most lenders want the rental income to cover 125-145% of the mortgage payment at a stressed rate (usually around 5.5%). If the numbers don't stack up on that basis, some lenders are more flexible than others — a broker will know which ones.
- If you're buying through a limited company, the market is actually a bit more open. Plenty of specialist lenders do SPV BTL mortgages. Rates are slightly higher but the tax treatment often makes up for it.
- Portfolio landlords (4+ mortgaged properties) get extra scrutiny under the PRA rules. Again, some lenders won't touch you, others specialise in it. A broker saves you weeks of rejection letters.

I've used a broker for my last three purchases and wouldn't go back to doing it myself. They know which lenders are actually lending and which ones have pulled back. Usually costs nothing upfront — they get paid by the lender on completion.

What kind of property is it and are you buying personally or through a company? That'll narrow down the options quite a bit.