Buy to Let

Whether you’re an established landlord or it’s your first time, we’re here to help

Taking the hassle out of building your property portfolio

Property is a popular investment for the future and we’re used to helping our clients plan their extra retirement income or obtain capital growth through property. Whether you’re looking to purchase your first investment property or expand your portfolio, your Caenstone advisor will talk you through the options available to you.

Our step by step guide on
how it all works

Find out how much you can borrow

Put bluntly, it depends on what you can afford.

A buy to let purchase differs from a residential purchase in that the estimated rent will be a driving factor as to how much can be borrowed as well as an applicants earnings and commitments.

That’s why we start with a review of your current finances, and we talk you through the various costs of buying a property. Before you start browsing the property pages, you need to know your budget, including how much deposit you should have available.

We will let you know what documentation is required.

Step 1
Get a Mortgage in Principle

A mortgage in principle is not a guarantee, but it does show that a lender is willing in principle to financially support your property purchase.

When you start viewing properties, this makes you look like a serious buyer.

Step 2
Start house hunting

Know what you’re looking for (including your must-haves, nice-to-haves, and deal-breakers).

Then you need to know where to look, including websites, estate agents, property developers, and auctions.

Step 3
Contact your mortgage broker

As soon as you’ve found your perfect place, put in an offer and wait for it to be accepted.

Contact us to let us know and we’ll start to get the wheels in motion for you.

Step 4
Find a solicitor

You’ll need a solicitor to take care of the legal work involved in purchasing a property.

1) They understand the property sale and purchase process

2) They handle the various pre-purchase searches so that there are no surprises

3) They take care of the contracts

4) They will register the property in your name

Step 5
Apply for a mortgage

Now it’s time to get back in touch with your mortgage broker lender and make a detailed mortgage application. You won’t necessarily apply to the lender you have the agreement in principle with, your adviser will assess the most suitable options available at the time of application.

Step 6
Get a valuation

As part of the application process, the mortgage lender will carry out an independent valuation and survey of the property.

The minimum requirement is a ‘basic’ or ‘mortgage’ survey which is a relatively simple price appraisal, but you have the option to go for a more detailed survey that examines the building’s structure and flags up any possible long-term issues.

The bank’s surveyor will appraise the property value and also the expected rental amount that could be achieved in the current market.

Step 7
Receive a mortgage offer

Following the lender’s credit check, an examination of your financial details, and valuation of the property – and assuming everything is okay in that it falls within their lending terms and conditions – they will offer you a mortgage.

Step 8
Exchange contracts with the seller

Exchanging contracts usually takes place 7-28 days before the date of completion (when the property becomes yours!) and involves the lawyers on both sides confirming that both seller and buyer are ready to proceed (for you as a buyer, that usually means the mortgage offer has been issued, having a signed contract, transferred deposit funds and a buildings insurance policy is in place.

Step 9
Move into your new home

Once contracts have exchanged and completion has taken place, you’ll be given the keys and you can secure a tenant to move in.

Step 10

Helping to find you the best
possible mortgage

We deal with a wide network of lenders offering the best mortgages on the market

Talk to an expert advisor today
020 3909 9585

Too busy to talk now? Find a convenient time for you Arrange a callback

Commonly asked questions

Can a first-time buyer buy to let?

It is possible but options are limited. Most lenders insist that an applicant already owns a property before they are prepared to lend to them on a buy to let basis.

What is the minimum deposit for BTL?

The minimum deposit is usually 20% – but more lenders come to the market at 25%.

What is a regulated BTL mortgage?

A regulated BTL mortgage is used when the property is to be rented to an immediate family member.

The majority of lenders will refuse a mortgage on a property to be rented to a family member because of the risks involved should it come to repossession. There are lenders willing to offer a regulated mortgage for this type of arrangement.

The complete guide to buying your first home

Buying your first home is exciting! It’s also stressful, with plenty of ‘traps’ for the unwary.

Expert advice and guidance is essential, and we lay out the whole process – step by step and jargon-free – in our complete mortgage guide for first time buyers.

First time buyer - case study

Learn how Mai’s personalised experience saved her time and money, giving her the mortgage she wanted.

Read Mai's story

Talk to an expert advisor today
020 3909 9585

Too busy to talk now? Find a convenient time for you Arrange a callback