Whether you are purchasing your first investment property or growing an established portfolio, BridgeCross Finance can help you secure the right buy-to-let mortgage solution.
Buy-to-let mortgages are designed specifically for landlords and property investors purchasing residential property to rent out to tenants. From single investment properties to specialist cases such as HMOs and multi-unit blocks, we work with a broad panel of lenders to source competitive and tailored mortgage options.
A buy-to-let mortgage is a mortgage designed for residential investment properties that will be rented to tenants rather than lived in by the owner.
Unlike residential mortgages, buy-to-let lending is typically assessed based on the rental income the property is expected to generate, alongside factors such as deposit size, property type and landlord experience.
Buy-to-let mortgages may be suitable for:
Traditional buy-to-let mortgages are commonly used for standard residential properties rented to a single household or family.
These are often the simplest form of landlord borrowing and may provide access to a wider range of lenders and products.
An HMO (House in Multiple Occupation) is a property occupied by tenants from separate households, often renting individual rooms.
HMO mortgages are considered more specialist and may require lenders with experience in this area due to additional licensing, management and valuation considerations.
Examples include:
Buy-to-let lenders will typically assess:
Projected rental income plays a major role in determining affordability and borrowing limits.
Larger deposits may improve lender choice and access to more competitive mortgage products.
Some specialist properties may require previous landlord experience, although many lenders also support first-time landlords.
Standard properties, HMOs, MUFBs and semi-commercial assets can all have different lending criteria.
HMO stands for house of multiple occupancy, which means members from multiple families occupy the same property and potentially let a room or a unit each. The most common form of a HMO would be student lets, one property let to students from different families
MUFB stands for multi unit freehold block, which means there is one freehold title, so any borrowing against the property is registered against this one title, but there are multiple units on this one title. This could be something like one house split into 2 flats, but the flats do not have their own leaseholds, or it could be something like an entire apartment complex where there are lots of individual units. The difference between a MUFB and a HMO is that each unit in a MUFB is self contained and has its own kitchen and bathroom etc whereas a HMO may have shared facilities.
This is a very common misconception and this is where a buy to let mortgage gets confused with the term ‘interest only’. Interest only is a form of repayment type for a mortgage, where you pay the ‘interest only’ each month, meaning your mortgage balance will remain the same for the term of your mortgage.
This may seem like an obvious answer on the surface but its actually not always straightforward. It is best to discuss products with a broker who can calculate the true cost of each product taking in to account fees, interest payments and also your other needs and circumstances.
Lenders will often offer a range of products and these products will also come with a range of fee options and this is where a broker can help point you in the right direction.