Buy-to-Let mortgages

Whether you’re a first-time landlord or expanding your property portfolio, our buy-to-let mortgage helps you or your business buy a property that you rent out to other tenants. We have various types of buy-to-let mortgages available, including fixed-rate and tracker-rate mortgages. We can also give you a lending decision upfront, subject to the valuation, suitability, and rental potential of the place you want to buy.

 
  • Borrow up to 80% of the property's value (80% for new build houses and bungalows and 75% for new build flats and maisonettes)
  • Borrow from £25,005 up to £1 million
  • Take out up to three TSB Buy-to-Let mortgages to a total value of £2 million
  • Get a lending decision in principle before you've found your property
  • Customers purchasing a new Buy-To-Let property receive a free basic valuation
  • Customers switching their Buy-To-Let mortgage to us will receive a free basic valuation and standard legals*
 

TSB Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

How to apply

Request a call back from a Mortgage Expert who can arrange a convenient time to discuss your mortgage needs via video, telephone or face to face.

Find out what information you’ll need to have to hand

To talk to us about a new mortgage, call us on
0800 056 1088

Lines are open Monday to Friday 8am to 8pm and 9am to 2pm on Saturday.

Stamp Duty

Learn about Stamp Duty Land Tax and understand how to calculate it with our complete Stamp Duty Guide.

Types of buy-to-let mortgages

There are various types of mortgages, such as a fixed-rate or tracker-rate mortgage. You can read below to find out about these. At TSB we offer both fixed rate and tracker rate buy-to-let mortgages.

Fixed-rate mortgage

With the fixed-rate buy-to-let mortgage, your interest rate will remain the same for a set period, such as 5 or 10 years. The benefit of a fixed-rate mortgage is that it helps you to budget more easily, because your interest rate will stay the same for the entire length of the deal. However, if you switch away from the mortgage before the fixed-rate period ends, you can be charged early repayment charges. Initial rates for fixed-rate mortgages also tend to be higher than tracker-rate or variable-rate mortgages. You can find out more about the fixed-rate buy-to-let mortgages we offer below.

Tracker rate mortgage

With a tracker rate mortgage, the lender sets the pricing which will be a margin above Bank of England base rate (BBR) at that time. As the base rate increases or decreases, so does the interest rate on your mortgage. As the interest rates drop, your monthly payments will too. However, if the rates increase, you need to make sure your budget can cover these higher monthly repayments. Early repayment charges will sometimes apply if you switch away from the mortgage before the tracker deal period ends.

2 year fixed rate deal

Mortgage payments stay the same during the fixed-rate period so they're easier to manage.

View details

2 year tracker

The 2 year tracker you’re free to leave at any time. This rate tracks a percentage above the Bank of England Base Rate (BBR), so your monthly repayments will go up or down depending on how the BBR moves.

View details

Buy-to-let mortgages FAQ’s

If you own a property that you are not living in and would like to rent it out to tenants, then you will need a buy-to-let mortgage to rent it out. It could be classed as mortgage fraud if you rent out a property without a buy-to-let mortgage. You can change your mortgage to a buy-to-let or apply for a consent to let.

If, you have made all your mortgage repayments and own the property, you can rent it out to tenants.

Permission to let gives you permission from your lender to let out your home on a residential mortgage for a specified time. You may need to apply for consent to let if you’re moving into a new property but can’t sell yours.

Your lender can refuse your application for consent to let. If they accept your application, they can charge you. If your application is granted, you’ll still need to take out landlord insurance and ensure the property is habitable for tenants.

Existing TSB mortgage customers can find more information about buy-to-let or consent to let on our dedicated page.

If you are not granted consent to let by your lender, you will need to switch from a residential mortgage to a buy-to-let mortgage. You will need your lender to approve this. If they decline, you can switch to another lender.

If you are the landlord of a buy-to-let property, you cannot live in this property. This would be in breach of the mortgage terms which could result in mortgage fraud.

It will depend on the lender’s criteria whether you can let a home on a buy-to-let mortgage to a family member. Family members can be deemed as higher-risk tenants when it comes to rent payments.

Often, the deposit for buy-to-let mortgages is more than a residential mortgage deposit. This is to protect the lender in the event the landlord defaults on their payments, due to issues with collecting rent from tenants.

The deposit for a buy-to-let mortgage is often between 20-40% of the property's value.

How much you can borrow for a buy-to-let mortgage will depend on how much rental income you plan to receive from tenants. Generally, lenders suggest the monthly rental income you receive should be at least 25% more than your monthly mortgage payments. This way, as a landlord you can cover costs like insurance, repairs, and agent’s fees.

It’s important you estimate what you’ll need to spend on the property each year, as well as account for any time the property will be vacant where you won’t be receiving rental payments.

Things to consider

As part of TSB’s policy, did you know you:

  • Must be at least 25 years old to apply for a buy-to-let mortgage
  • Can apply for a mortgage on your own for a joint mortgage
  • Can get an agreement in principle before you've found the place you want to buy
  • We will lend to landlords with a maximum of 3 mortgaged buy-to-let properties, either with TSB or other lenders
  • Buy-to-let is not available for first time buyers
  • Must earn a minimum of £25,000 per annum from employment, self-employment or pension income

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

*Free standard legals are provided through TSB's nominated firms of conveyancer. Additional services such as change of name, transfer of equity, deed of postponement, any additional costs in relation to leasehold properties, acting in or discharging Help to Buy arrangements. This information must be given directly to the acting Conveyancer. Our nominated firms of conveyancers will not act for remortgage customers where additional funds are raised to simultaneously extend the lease or for remortgages which involve acting in or discharging shared equity or shared ownership arrangements.