Learn about mortgages

We know there's a lot to think about when choosing a mortgage, but don't worry, we're here to make the whole process as simple as possible for you.

Buy-to-let

 

Thinking about investing in a property to rent out? Here at Northern Rock, we offer a range of Buy-to-let mortgage?s to help you achieve your goals for the future.

It's important to remember that owning a buy-to-let property is like running a small business and you will have to invest time as well as money into it to keep things running smoothly.

 

Before you start looking for a property

Here's a handy list of the things that you might want to consider before you start looking for a property.

  • Seek advice from local letting agents about the suitability of any property you are thinking of buying and the demand for rental properties in the area.
  • Think about costs such as solicitors' fees, stamp duty, letting agency and management fees. You will also be responsible for buildings insurance, ground rent and/or service charges for leasehold flats and maintenance and repairs for the property, so make sure you have sufficient funds in place.
  • You will have certain legal responsibilities as a landlord. You will be required to ensure the safety of all gas and electricity appliances as well as ensuring all furniture and furnishings meet fire safety requirements.
  • We recommend that you seek some professional advice from an accountant or your tax office on the effect that the property may have on your tax affairs.
  • Think about how you will afford your monthly Buy-to-let mortgage? payments if the property is empty, your tenants fall into Arrears? or if interest rates rise.
 

Things to consider

So, you've thought about the implications of becoming a landlord and now you want to choose a property? Now it's time to consider the following things.

  • Think about the type of tenants you are looking to attract. For example, young professionals will have different requirements than families, so it's important to consider what features your tenants will be looking for in a rented property.
  • Consider the location of the property and what amenities are important to your tenants. You might want to think about the distance to the nearest shops, schools or bars, depending on the type of tenant you are looking for.
  • Consider the size and condition of the property.
  • And finally, think carefully about whether you can afford the property. You should view your buy-to-let property as an investment and should think about whether you want this to be long or short term. It's also important to bear in mind that the value of properties can go down as well as up, so you should be prepared for this when you look to invest.
 

Buy-to-let mortgages

Now that you've thought about your responsibilities as a landlord and the type of property you're looking for, you will need to consider the type of mortgage you need.

Northern Rock offers a range of Buy-to-let mortgage?s which could help to fund your investment. Take a look at our range of buy-to-let mortgages.

Key facts about our buy-to-let mortgages:

  • Our mortgages are available for single properties up to a value of £1 million and you can hold up to ten properties up to a total value of £3 million.
  • We calculate affordability based on 120% of pay rate. This means that you must be able to show that the amount you are likely to receive in rent each month is 120% of the monthly interest you will pay on your selected mortgage. As long as your rental income covers your mortgage payment, there is no minimum income requirement.
  • You can choose the type of mortgage repayment that is best for you. This could be interest only, Capital? repayment or part-and-part.
  • The minimum age for someone looking to apply for one of our Buy-to-let mortgage?s is 21 and there can be up to four applicants for each mortgage.
  • Our Buy-to-let mortgage?s are available to individuals only. Currently, we do not offer buy-to-let mortgages to companies.

If you'd like to find out more about investing in a buy-to-let property, take a look at some of the links below, give us a call, or pop into your local branch to discuss your individual requirements with us.

Useful links

If you're looking for further information about buying a property to let, the Association of Residential Letting Agents links below may help.

  • Advice about buying a property to let: what is buy-to-let?
  • Frequently-asked questions from property investors, including information on tenancy agreements and maintenance: landlord information
  • Information on the income a property investor can expect, and basic buy-to-let tax guidelines: the returns

Why choose Northern Rock?

We'll help you find our best mortgage for your needs and ensure that everything runs as smoothly as possible from beginning to end.

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