Self-employed buy-to-let mortgages

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About Martin Alexander

Martin has been a mortgage advisor for over 15 years. Check to see if you qualify by filling out our quick form or give us a call on 0800 195 0490. mortgage reviews

Being self-employed certainly has its benefits, however in terms of getting a mortgage, it can make things slightly difficult. The good news is that some lenders have developed a more relaxed approach in lending to the self-employed. This is especially true where buy-to-let mortgages are concerned.

Self-employed buy-to-let mortgages aren’t as difficult as applicants often seem to think. A structured approach to your mortgage can even secure great mortgage rates.

As lenders have varied criteria, some may request a minimum income or three years accounts. On the other hand, there are lenders that will approve mortgages with:

  • Only 1 year of accounts
  • No minimum income requirement
  • Zero income for experienced landlords
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How to get a buy-to-let mortgage if you’re self-employed

You may wonder how it’s possible to secure a buy-to-let mortgage with no minimum income requirement so we’ll explain.

Even if a self-employed applicant showed just £100 profit on their accounts, the lender will see this as an income. As some lenders have no minimum income requirement, this won’t be an issue. Furthermore, if you’ve already owned buy-to-let property, lenders will see you as a smaller risk compared to less experienced buy-to-let borrowers. This means that experienced landlords can obtain buy-to-let mortgages and don’t even need to have an income to secure a mortgage.

The reason lenders tend to do this is because rent will usually cover mortgage payments and leave a monthly profit for the landlord. As a result, lenders don’t need to depend on the income of an applicant in order to repay the mortgage. As the majority of buy-to-let mortgages are taken out on interest-only rates, monthly mortgage payments can be very low.

Self-employed buy-to-let mortgages and deposits

Deposits can be generated from personal savings and gifted deposits. You can also generate a deposit by using the equity from a remortgaged property, but how much deposit do you actually need?

You will in almost all cases need at least a 25% deposit. This is because buy to let products often start at 75% LTV. Lenders may on some occasions accept slightly lower deposits of 15-20%. It’s advised using a higher deposit as you’ll usually secure favourable rates by doing so.

Current buy-to-let mortgage rates

Mortgage rates are constantly changing. As buy-to-let is essentially an investment, it’s worth shopping around and calculating the most viable deals. Have a look at our current rates below.

View current buy-to-let mortgage rates.

Speak to a buy-to-let mortgage specialist

Our expert mortgage advisors specialise in mortgages for the self-employed. Here are a few reasons to contact us!
  • Access to the whole market – Our advisors aren’t tied to one lender, meaning that they’ll search the entire market for a product that suits you.
  • Exclusive products – Our experts have access to exclusive mortgage products that may not be available elsewhere.
  • Independent advisors – Our advisors will always do what’s best for you, as they are not tied to certain products and companies.
  • Experienced advisors – Our specialists are all experienced, qualified and extremely knowledgeable on self-employed buy-to-let mortgages
  • Specialist advisors – With specialist knowledge in fields such as self-employed mortgages and bad credit mortgages. Even when a mortgage seems unlikely, our advisors are often able to locate approval.

You can make an enquiry below to get started.

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