Buy to let UK mortgages
What is a buy to let mortgage?
This is a mortgage designed for clients who intend to purchase property in the UK to rent out to others and provide the owner with an income. Our buy to let mortgages can normally be arranged as either a fixed rate mortgage, tracker rate mortgage or a combination of both.
Why you might consider a buy to let mortgage?
If you want to balance your investments, then property could be an option. So whether you’re considering investing for the first time or are already renting out, a buy to let mortgage could help you achieve the return you are looking for.
What are the key criteria to obtain a buy to let mortgage?
Here are examples of the key criteria that would be considered by many lenders.
Most lenders will want to run a check on your credit history in the UK before lending to you. If you do not have any recent financial dealings in the UK, then you may not have a recorded UK credit history. In this case most lenders would not want to lend to you.
However, if you have an account with Barclays international banking your overall financial position will be taken into account, which may make it easier to get a mortgage.
Deposit and property rental revenue
The deposit required for a buy-to-let mortgage is generally higher than a typical residential mortgage. You will typically need to raise a deposit of around 40% or more of the property value.
Along with raising a deposit of around 40% you should seek independent verification that the net rental income from the property will equate to between 125% and 135% of the monthly interest payments on the mortgage.
This additional return allows for maintenance costs and times when the property does not have tenants and you will still need to maintain payments on your mortgage.
Possible risks with buy to let mortgages
Like other types of investments, property should be viewed as a long term investment opportunity where its value and any rental income can go down as well as up and the possibility of you having to reduce the mortgage by repaying capital in order to maintain the loan to value requirements..
You should make provisions for how you would make your monthly buy to let mortgage repayments in the event of your buy to let property being empty, your tenants failing to pay or if interest rates rise.
You should have an understanding of the total costs involved with purchasing a property in the UK, for example Stamp Duty Land Tax and solicitors' costs.
Consider the implications on your tax affairs. We recommend that you consider taking professional tax advice from an accountant or discussing with your tax office.
Key benefits of our mortgage service
- A wide range of mortgages with competitive interest rates
- Help from our team of experienced Mortgage Advisers, who are specially trained to understand the needs of our clients
- A simple and straightforward application process
- If you have recently moved to the UK and don’t yet have a substantial UK credit history we will take into account your worldwide financial position
- Mortgages for clients who are permanently resident overseas and considering purchasing a property in the UK for residential or investment purposes
- The reassurance of holding your mortgage with a bank with over 300 years of history and experience in banking, backed by the expertise of the Barclays Group
YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT..
For more information or to apply
Call us on +44 (0)1624 684 305† to discuss your buy to let mortgage requirements or arrange for one of our Mortgage Advisers to call you back.
Security will be required against the property.
Terms and conditions apply to all mortgage products. We strongly recommend that you obtain your own independent tax advice before proceeding with an offshore mortgage.
Barclays will require a first legal charge over the property.
As a responsible lender, we only want you to borrow what you can afford, and in a way that is best for you. When considering your application, your financial circumstances will be assessed before we make a decision to lend money. And remember, if you should run into any financial difficulties, please contact us as soon as you become aware of them.
In all forms of advertising and marketing material where repayments are quoted, we will show clearly a typical Annual Percentage Rate (APR). We will also clearly indicate in all lending-related advertising issued in Jersey that we abide by the Code of Practice for Consumer Lending.
† Lines are open 24 hours a day, 7 days a week except for 25 December when the lines are closed. Call costs may vary - please check with your telecoms provider. Calls may be recorded so that we can monitor the quality of our service and for security purposes.
The products and services described on this page are provided by the following companies, which are part of Barclays: Barclays Bank PLC in London and Barclays Private Clients International Limited in the Isle of Man, Jersey and Guernsey. For further Information on these companies and Barclays please read the Important Information.