Here at Newable Finance, we have a comprehensive range of financial services designed to cater to the diverse needs of businesses, one of which being But-to-Let Mortgages.


What is a Buy-to-Let Mortgage?


A Buy-to-Let Mortgage is a way to borrow money when you are purchasing property as an investment, specifically to rent out. Unlike a normal Residential Mortgage, which is used for buying a home to live in, a Buy-to-Let Mortgage caters to landlords and property investors.

Buy-to-Let Mortgages come in many shapes and sizes, they can either be secured against single units for new landlords looking to take their first steps into the rental property market or across a larger portfolio for seasoned investors to perhaps finance a holiday home.

Typically, investors will take out an Interest-Only Mortgage for their chosen property, with a view that they can re-assess the lending market for a better deal at the end of their term. They then only pay the interest on the loan as it accrues every month, generally from the proceeds of the rent they collect. The capital debt – the full amount of the mortgage – is paid at the end of an agreed term. This can be done by saving or selling the investment property. Most Buy-to-Let borrowers prefer to take out Interest-Only Mortgages, because they mean lower outgoings.


How do Buy-to-Let Mortgages work?


How much you can borrow will depend on your deposit, personal circumstances and rental income. Lenders require you to earn more in rent every month than you repay on your mortgage, this is how the affordability is calculated and the Loan to Value determined. Lenders consider your current portfolio (if any) and your history of obtaining and repaying Buy-to-Let finance when assessing your affordability.

The minimum deposit for a Buy-to-Let Mortgage is typically higher than a standard residential mortgage. To secure a Buy-to-Let Mortgage, you’ll typically need a deposit of at least 20-25% of the property’s value.

Bad credit may impact eligibility, but some lenders specialise in Buy-to-Let Mortgages for applicants with less-than-perfect credit histories.



What are the benefits of a Buy-to-Let Mortgage?


  • Income Generation: Buy-to-Let properties allow you to earn regular rental payments from tenants. Unlike other investments that may rely on market fluctuations or dividends, rental income from Buy-to-Let properties tends to be more stable.


  • Capital Appreciation: A Buy-to-Let property can serve as a reliable, long-term investment. Over time, property values may appreciate, providing potential financial gains. It’s essential to consider the long-term perspective when investing in real estate.


  • Property Market Entry: Buy-to-Let Mortgages provide an opportunity for beginners to enter the property market. Owning a rental property allows you to gain experience as a landlord and learn about property management. Becoming a landlord through a Buy-to-Let Mortgage allows you to understand the responsibilities and challenges associated with property ownership. You’ll learn about tenant management, maintenance, and legal obligations.


  • Tax Deductions: As a landlord with a Buy-to-Let Mortgage, you can qualify for tax deductions against certain costs related to managing your rental property. These deductions can help reduce your tax liability when filing your self-assessment tax return.


Newable Finance’s Role


At Newable Finance, we specialise in providing financial solutions to small and medium-sized enterprises (SMEs) and property-backed businesses. Here’s how we can assist you with Buy-to-Let Mortgages:


  • Borrowing Capacity: We help you determine how much you can borrow based on your financial situation and the property’s potential rental income.


  • Lender Access: With access to over 150 lenders, including high street and specialist options, we find the right fit for your needs.


  • Quick Funding: Our streamlined process ensures that funding can be available in as little as 48 hours. Just fill out this form in less than one minute, with some basic information about your business and how much money you need. One of our dedicated advisors will be in touch with you within 24 hours, between our working hours of Monday – Friday taking the time to understand your specific requirements. We will then request a few more details from you.


About Newable


For over 4 decades, Newable has been supporting thousands of businesses every year through the provision of MoneyAdvice and Workspace. An employee-owned business with a commitment to creating positive impact in all that we do, our team are on hand to help your business today.

Find out more about how Newable can help you and your business.


If you do not keep up repayments on a buy-to-let mortgage, the lender may repossess the property or appoint a receiver of rent.

Newable Commercial Finance Limited trading as Newable Finance is registered in England and Wales. Registration number: 07474588. Newable Commercial Finance is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register FRN 723703 | Data Protection number: Z6663758. Newable Commercial Finance is a finance broker, not a lender. Not all products offered by Newable Commercial Finance are regulated by the Financial Conduct Authority