0330 043 0327
0330 043 0327
WRITTEN BY
Richard Aston
Mortgage Adviser

Jan 06 2023

In this Guide

Your home may be repossessed if you do not keep up repayments on your mortgage
The Financial Conduct Authority does not regulate most Buy to Let Mortgages

Buy to let FAQ

Entering the Buy to Let property market in Northern Ireland is not as simple as it may first seem there are many things to consider before taking your first step to becoming a Landlord below we answer some of the most frequently asked questions we get in regards to Buy to Let property investment.

How many buy to let properties can you have in Northern Ireland?

Most lenders will impose restrictions on how much total exposure they are willing to risk on a single applicant. Some lenders may only allow you to have 1 property mortgaged with them, some will allow 3 and some lenders may not have any limit depending on your circumstances. If you wish to expand your portfolio and you aren’t sure where to apply next contact us today our mortgage advisors will assess your circumstances and instantly know where to apply next.

How much can you borrow?

This will not be calculated in the same way as a residential mortgage as well as using your own personal income your lender will expect your rental income to cover the mortgage repayments by at least 125%. In order to prove your expected rental income your lender may ask for a letter which has been stamped and signed by an approved letting agent stating the amount they would expect the property to fetch on a monthly basis.

What products are available?

If you want a guarantee that the mortgage will be repaid in full at the end of the term a repayment mortgage is the option for you. Your monthly repayments will be considerably higher but you will own the property outright at the end of the term providing you keep up with the repayments.

With an interest only mortgage you will only be required to pay the interest each month and nothing off the capital, many landlords choose this option for their buy to let properties as it makes their portfolio easier to manage during void periods ( when they have no tenant ) and it also keeps cash free for any unexpected repairs that need to be carried out. They can then save up the excess money collected from rent and pay off the loan in lump sums when they feel the time is right. There is no guarantee that you will ever be able to clear the debt with an interest only mortgage so if you choose this option you must plan carefully for the future.

There are always plenty of fixed rate products available on the buy to let market they will come in the form of both interest only and repayment loans and are usually 2, 3 or 5 year deals at the end of which you will be moved to your lenders SVR which is usually higher. At this point we would recommend that you consider re-mortgaging for a better rate.

These will usually come in the form of trackers where the interest rate is set a certain percentage above the Bank of England’s base rate or a percentage below your lenders SVR ( Standard Variable Rate ). These deals will also usually last for a predefined period of 2, 3 or 5 years after which you will revert back to the standard variable rate.

What are the tax implications?

It’s important that you fully understand all of the tax implications before committing to buy to let property investment. If you are in any doubt contact a mortgage broker who can assess your circumstances and explain exactly what you will be liable to pay.

Tax rules on buy to let properties are always changing and for that reason it’s best to contact a professional who can update you with the latest rules and regulations.

Is a buy to let mortgage a good investment?

It can be if done right but there are plenty of risks involved it’s important that you get your sums right and carefully consider everything renting out property entails before committing to becoming a landlord. Remember never invest money that you cannot afford to loose, if you are in any doubt contact us today and we will guide you through the process.

The Latest 75% LTV Buy to Let Products

The products below are based on a purchase price of £150000 with the applicant contributing a depsoit of £37500 which means the loan amount would be £112500. All of the products listed are based on a mortgage term of 30.

2 Year Fixed Rates
5 Year Fixed Rates
Tracker Rates

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£528.70
Initial Monthly Payment
2 year fixed
Rate Type
£1800
Product Fee
3.87%
Initial Rate
8.24%
Follow on Rate
8%
APRC
£12688.8
Initial Period Cost

Buy to Let interest only mortgage. Standard variable rate 8.24%, Cash Back £0.00, Total fees £1,957.00. An early repayment charge is applicable to this mortgage until 01-Apr-27.

Your rate of 3.87% will last for the first 26 months of your mortgage (the 'initial period'). After that, you'll switch to the lender's standard variable rate (SVR). For Virgin Money that's 8.24%. Based on what you've told us, your loan to value (LTV) is 75%, the maximum loan to value for this product is 75%. The total cost of this mortgage is £259563. That's the total cost you will pay over the whole term of the mortgage.

Subject to eligibility
expand_more
£546.87
Initial Monthly Payment
2 year fixed
Rate Type
£1800
Product Fee
4.15%
Initial Rate
9.09%
Follow on Rate
8.7%
APRC
£13124.88
Initial Period Cost

Buy to Let interest only mortgage. Standard variable rate 9.09%, Cash Back £0.00, Total fees £1,900.00. An early repayment charge is applicable to this mortgage until 31-Mar-27.

Your rate of 4.15% will last for the first 26 months of your mortgage (the 'initial period'). After that, you'll switch to the lender's standard variable rate (SVR). For BM Solutions that's 9.09%. Based on what you've told us, your loan to value (LTV) is 75%, the maximum loan to value for this product is 75%. The total cost of this mortgage is £286338.84. That's the total cost you will pay over the whole term of the mortgage.

Subject to eligibility
expand_more
£546.87
Initial Monthly Payment
2 year fixed
Rate Type
£3499
Product Fee
4.15%
Initial Rate
7.74%
Follow on Rate
7.6%
APRC
£13124.88
Initial Period Cost

Buy to Let interest only mortgage. Standard variable rate 7.74%, Cash Back £0.00, Total fees £3,529.00. An early repayment charge is applicable to this mortgage until 02-May-27.

Your rate of 4.15% will last for the first 28 months of your mortgage (the 'initial period'). After that, you'll switch to the lender's standard variable rate (SVR). For NatWest that's 7.74%. Based on what you've told us, your loan to value (LTV) is 75%, the maximum loan to value for this product is 75%. The total cost of this mortgage is £243816.68. That's the total cost you will pay over the whole term of the mortgage.

Subject to eligibility
expand_more

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