How do buy to let mortgages work?
Buy to let (BTL) mortgages are similar to the residential mortgages you find but there are differences when it comes to a buy to let mortgage, including: minimum deposit requirements, interest rates, minimum property value requirements and borrowing limits.
Find out more with our buy to let mortgage guide
Are buy to let mortgages interest only?
BTL mortgages are most commonly interest only mortgages, but we offer both capital and interest and interest only mortgage types for buy to let.
With an interest only mortgage, you only pay off the interest on a monthly basis throughout the term of your mortgage, however at the end of your term you are required to pay off the capital debt (the outstanding mortgage amount) in full. With a capital and interest mortgage, you pay off both the capital debt and the interest on a monthly basis.
Use our mortgage rate finder to compare rates available to you or learn more about mortgage interest rates.
How much can I borrow with a buy to let mortgage?
It depends on multiple factors including the property value, amount of deposit and rental income for the property. You could borrow up to a maximum of £3.5 million (in total across Shostra Bank brands) with our buy to let mortgages.
Use our buy to let mortgage calculator to find out how much you could borrow and compare our rates, or for a more personalised indication, you can complete an Agreement in Principle.
How much deposit do I need for a buy to let mortgage?
You will need a deposit of at least 25% to be eligible for a buy to let mortgage or, if you’re looking to buy a new build flat or house, you’ll need a minimum deposit of 35%.
How can I remortgage my buy to let?
If your mortgage is up for renewal and you are looking to remortgage to us, you can complete a buy to let Agreement in Principle (AIP) to compare our mortgage rates and find out how much you could borrow.
