Buy to Let Mortgages

Domus Mortgages delivers comprehensive advice on buy-to-let mortgages, whether you're investing in your first property or growing your portfolio. We assist individual landlords, portfolio landlords, and limited companies.

We guide you  by explaining:

-available products

-outlining potential risks

-clarifying how different ownership structures affect your choices.

Our aim is to provide straightforward options so you can make confident, informed decisions.

Risk Warning: Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.

Individual Landlord Mortgages

If you are considering property investment as an individual, securing a buy-to-let mortgage will depend predominantly on the projected rental income of the asset. Domus Mortgages evaluates

- lender requirements

- anticipated rental yields

- affordability assessments to ensure the selected product aligns with your objectives.

Risk Warning: Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.

Portfolio Landlord Mortgages

If you want to invest in more than four mortgaged buy-to-let properties, the portfolio mortgage is the right for you.  Landlords with four or more mortgaged buy-to-let properties must meet portfolio criteria. This is more risky and lenders typically request portfolio details, stress tests, and proof of experience. Domus Mortgages will help with  all these requirements and manage property financing.

Risk Warning: Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.

Limited Company (SPV) Buy to Let

Under certain circumstances, landlords opt to acquire properties via a limited company (Special Purpose Vehicle, or SPV). While this structure may offer tax advantages, it also entails distinct lender requirements, legal obligations, and associated costs. Domus Mortgages provides detailed explanations of these implications and assists you in evaluating whether this strategy aligns with your individual circumstances.

Risk Warning: Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.

Key features often include:

• MAXIMUM 75% – 80% Loan-to-Value

• Rental stress tests are usually between 125%–145% of the mortgage payment

• Personal guarantees required from directors/shareholders

• Gifted deposits allowed from directors

• Portfolio lending options for landlords with 4+ properties

• Few lenders offering Holiday let mortgages

Basic Criteria

Lenders normally expect:

• A company registered in the UK

• SPV structure with the appropriate SIC code (property-related classification)

• Directors & shareholders named on the application

• Director credit record in the UK

• Disclosure of Group Structure and Ownership

Mainstream banks are generally more selective with partnerships and LLPs, so specialist lenders often provide most of the support in this sector. Many lenders accept newly established SPVs, offering funding even if there’s no trading history, as loan approvals are usually based on expected rental income rather than current company accounts.

HMO Mortgages (Houses in Multiple Occupation)

HMO properties often offer enhanced rental yields; however, they are governed by stringent regulations and require specialized lender approval. It is important for you to have the best advice before committing. Domus Mortgages partners with lenders experienced in HMO financing and we will ensure clients are fully informed of their obligations prior to entering into an agreement.

Risk Warning: The Financial Conduct Authority does not regulate most Buy-to-Let mortgages.

Holiday Let Mortgages

Holiday lets require mortgages that take into account seasonal rental income and potential void periods. We explain how these products differ from standard buy to let and which lenders may offer appropriate terms.

Mortgages for holiday consider both seasonal rental earnings and possible periods when the property isn’t rented. At Domus Mortgages, we guide you through these mortgages and explain the difference from regular buy-to-let loans and highlight lenders who might provide suitable options.

To qualify, lenders usually expect the property to be:

• Available 210 days per year to guest

• Let for at least 105 days per year

• Fully furnished and marketed as a holiday rental

The property can still be used personally, but only for short stays. In the case that the property is mainly for personal use, the second- home mortgage will be the right one.

Deposit & Rates

Deposit usually vary between 30% – 35% (on special circumstances even 20% but in other cases 40%+ is the requirement).

Holiday-let mortgage rates tend to be higher than those of standard buy-to-let products. Affordability is evaluated based on realistic occupancy forecasts, rather than assuming year-round (52-week) rental income.

We charge a broker fee of £399, payable on application.

Risk Warning: The Financial Conduct Authority does not regulate most Buy-to-Let mortgages.