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The buy to let mortgage experts

Mercantile Trust specialises in helping our clients purchase buy to let properties, or release equity from an existing property. Our flexible, experienced team of experts provide a service that is second to none and are there to help ensure that applying for a buy to let mortgage for your dream property is as easy as possible.

Whether you’re looking at buying your first rental property or are experienced at letting it is essential to find the right btl mortgage provider. At Mercantile Trust, we are here to help and support you through the life of your mortgage, from application through to completion and beyond.

Our team of experts know that our customers are individuals, and their needs are unique, so they will make sure they understand your specific requirements, and provide you with the very best buy to let mortgage deal.

The sooner you can secure your mortgage, the sooner you can begin enjoying the rewards!

What is a Buy-to-Let Mortgage?

A buy-to-let mortgage is a finance agreement that allows you to purchase a property in order to rent it to a third party.

A regular residential mortgage does not let you rent the property out, unless you gain the permission of your mortgage lender. Whilst residential lenders may give you permission if you ask for it, there will often be an additional charge to do so.

Our first charge mortgages are intended for the sole purpose of purchasing a property to rent, so no additional fees are charged for doing so.

Buy-to-let mortgage applications are assessed mainly on the potential rental income of the property i.e. how much rent can be charged for the house or flat / apartment being purchased. This means that there are far fewer affordability checks, however it is essential to ensure that you can afford the mortgage, as the property may be repossessed if you do not keep up with the repayments.

Mercantile Trust, unlike many other lenders don’t have a minimum income or employment requirement, so if you aren’t working as a result of retirement or other factors, you may still be eligible for a btl loan.

How to get a buy to let mortgage

If you are looking for a mortgage for a buy to rent property or for investment, we can help you.

We specialise in obtaining the best buy to let mortgages for our clients and always ensure that the quality of our service is second to none, making us a company you can trust to deliver the deal and service you want.

We provide First Charge and Second charge buy to let mortgages and specialise in helping find the best mortgage deals for landlords just like you.

We can help first time buyers in the purchase of their 1st btl property as well as experienced landlords with large portfolios of rental properties. We can also provide HMO Mortgages as well as mortgages for Limited Companies.

We have a range of Capital and Repayment or Interest Only buy to let mortgages available. We offer Fixed Rate as well as Variable Rate interest rates and will always ensure to calculate the mortgage term and mortgage payments so that they are the best for your specific needs.

Buy to let mortgage deposits and LTV’s

The amount of deposit you have available can have a significant impact on your mortgage.

The larger your buy to let mortgage deposit, the lower amount of credit you will need to borrow. If you borrow less money, your monthly payments and interest rates could be lower and the total amount you repay could be reduced.

To help you calculate your buy to let mortgage costs we can lend you a maximum of 75% of the value of the property which means you will be required to pay a minimum of 25% deposit. If you want to discuss your circumstances in advance, just give us a call and we'll be happy to help.

Buy-to-let mortgage applications are assessed mainly on the potential rental income of the property i.e. how much rent can be charged for the house or flat / apartment being purchased. This means that there are far fewer affordability checks, however it is essential to ensure that you can afford the mortgage, as the property may be repossessed if you do not keep up with the repayments.

Buy to let mortgage rates

The buy to let mortgage rate you are offered depends on a number of factors unique to your case. This includes your financial situation, the rental income of the property you’re looking to purchase, how much you’re expecting to borrow and whether you’re borrowing for a first or second charge mortgage.

Because of the amount of factors considered, buy to let mortgage rates can vary, as such establishing an idea as to what your buy to let mortgage rate may be can be difficult. The best way to find out what rate you may be able to borrow at is to discuss your needs and circumstances with our expert advisors.

Buy to let mortgage rates

Second Charge Buy-to-Let Mortgages

If you want to raise some extra cash and release some equity from an existing rental property, our second charge buy to let mortgages could be the ideal solution.

Whether you want to raise the money for a deposit for your next property, to renovate an existing property or for any other reason at all, a second charge buy to let mortgage is a great way to get the capital you need, fast.

At Mercantile Trust, we know that when you need extra cash, the last thing you want is frustrating delays. That’s why we specialise in processing our second charge BTL mortgages as quickly as possible. We will need to request and assess some information from you, but we do not require long-winded income and expenditure checks – we don’t even need to involve solicitors!

So if you need to release money fast, apply today and you could have your money before you know it!

Buy to let mortgage criteria

We will do our very best to help everyone, however there are certain lending criteria and requirements that must be met in order to apply:

Buy to let Criteria

  • Up to 75% loan to value
  • Rates from 7.99%
  • 1st and 2nd charge
  • Tenants must not be related to applicant
  • Applicants must be at least 18 years old
  • Mortgage term must end by applicant’s 80th birthday
  • Rent must cover monthly payment at 125%
  • 1% stress rate
  • 12 months mortgage or rental history required
  • Top slicing available
  • No personal income requirements
  • Mortgage term can be between 3 and 25 years
  • Most property constructions accepted
  • Individuals and limited companies accepted
  • First time landlord, first time buyers accepted
  • HMO's (Houses in Multiple Occupation) accepted
  • No maximum number of rooms in HMO’s
  • DSS tenants accepted

Landlord Tips

We are always here to help you and we want your property to be a success – here are a few useful tips and hacks we picked up over our years of lending…

Always be prepared for times when there’s no rent coming in

In the life of any rental property, there will almost certainly be periods when there are no tenant and no rent is being received. It is essential to plan ahead for these times (known as “voids”) as you will still be required to make your mortgage repayments in order to retain the property.

During the times you are receiving rent, transfer some of it to a savings account and keep this account topped up whenever possible. This money can be used to make mortgage payments during voids, or to cover any unexpected repair bills such as blocked drains or a broken boiler.

Never rely on the sale of the property to repay its mortgage

Assuming that you will be able to sell a property in order to repay the mortgage can be a risky trap to fall into. Even in a buoyant economy there is always the danger of house prices dropping. If this was to happen, you may not be able to sell your property for as much as you anticipated, and you would still have to cover the difference on the outstanding mortgage.