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From a first rental property to an established portfolio, the right mortgage will depend on the property, expected rent, ownership structure and wider purpose of the investment.
Jayhawk Capital advises landlords and property investors on buy-to-let purchases, remortgages, capital raising and more specialist requirements.
We take the time to understand the property and the wider plan, giving you an early and honest view of what appears possible, where the challenges may lie and how the borrowing could be structured.
For first-time landlords, experienced investors, limited companies and portfolio property owners.
Buy-to-let mortgages are assessed differently from mortgages on homes occupied by their owners.
The lender will usually consider whether the expected rental income provides sufficient support for the mortgage. It may also assess your deposit, income, credit position, landlord experience, ownership structure and any other rental properties you already own.
Before considering individual mortgage products, we will look at:
This helps us establish how the proposed investment is likely to be assessed and which lenders may be suited to the requirement.
Lenders can consider applicants purchasing their first buy-to-let property, although the available options will depend on the property, expected rent, deposit and borrower.
Some lenders will also consider whether you already own your home, your personal income and the reason for entering the rental market.
We will explain what is likely to be required and help you understand the mortgage position before you commit to the purchase.
A landlord purchasing another property may be using savings, company funds or equity released from an existing asset.
The new purchase should be considered alongside the current portfolio, including property values, rental income, outstanding mortgages and product end dates.
Looking at the full position can help establish whether the property should be financed individually or considered as part of a wider refinancing plan.
You may be approaching the end of an existing mortgage deal, looking to review the rate and terms or moving to a lender better suited to the property or ownership structure.
The potential benefit of changing mortgage should be considered alongside early repayment charges, product fees, legal costs and the effect on the wider portfolio.
Remaining with the existing lender may sometimes be appropriate. In other cases, reviewing a broader range of lenders may provide a more suitable option.
Equity held in a rental property may be released to provide a deposit for another purchase, fund refurbishment or support another defined investment purpose.
The amount available will depend on the property value, outstanding mortgage, rental income and lender criteria.
Increasing the borrowing can affect the monthly cost and rental coverage, so the existing and proposed transactions should be considered together.
Let-to-buy involves retaining your current home as a rental property while purchasing a new home to live in.
The existing residential mortgage, expected rent, available equity and affordability of the new residential mortgage will all need to be assessed.
Depending on the circumstances, the current lender may provide consent to let, or the property may need to be remortgaged onto a buy-to-let product.
Bridging finance may be used where a property needs to be purchased quickly or requires work before it is ready for a standard buy-to-let mortgage.
Once the property is lettable and meets the relevant lender criteria, it may be refinanced onto longer-term buy-to-let borrowing.
The likely buy-to-let exit should be considered at the beginning so that the purchase, refurbishment and refinance form one realistic plan.
The expected rental income is usually central to a buy-to-let mortgage assessment.
Lenders commonly compare the rent with a stressed mortgage interest cost to establish whether the property provides sufficient rental coverage. The exact calculation varies between lenders and can also depend on the mortgage product, ownership structure and applicant.
A lower advertised mortgage rate does not always mean that the lender will provide the largest loan. Rental calculations and lending criteria can be just as important as the product itself.
The amount available may therefore be affected by:
Where the rent does not meet the standard calculation for the full mortgage required, some lenders may consider personal income alongside the rental income.
This is commonly known as top slicing.
The lender will normally consider whether you have sufficient surplus income to support the mortgage after allowing for regular expenditure and other financial commitments.
Top slicing will not be suitable or available in every case. We will assess both the rental figures and your wider financial position before explaining which lenders appear worth considering.
A buy-to-let property can be owned personally, jointly with another person or through a limited company.
The proposed structure can affect:
The ownership structure should ideally be considered before an offer is made or a mortgage application begins.
Jayhawk Capital can explain how the proposed structure affects the mortgage. An accountant or tax adviser should advise on the tax and financial implications before the ownership structure is chosen.
With a personal buy-to-let mortgage, one or more individuals own the property directly.
The lender will assess the borrowers, the property, the expected rent and any existing portfolio. The borrowers remain personally responsible for meeting the mortgage commitments.
A limited company buy-to-let mortgage is arranged in the name of a company, often one created specifically to hold rental property.
The lender will usually assess the company, its directors and shareholders, the expected rent and the proposed property. Directors are commonly asked to provide personal guarantees.
Limited company ownership is not automatically the right route for every investor. Mortgage pricing, fees, accounting responsibilities and personal tax circumstances all need to be considered.
Where a landlord owns several mortgaged rental properties, lenders may assess the wider portfolio as well as the individual property being purchased or refinanced.
This can include:
A property may support its own mortgage while another part of the portfolio affects the overall application. We take the time to understand how the proposed transaction fits with the existing borrowing rather than treating it as an isolated mortgage.
Lender criteria can also vary according to the property and how it will be let. Jayhawk Capital can help assess requirements involving:
HMOs and multi-unit properties often require a more specialist lender assessment. The lender may consider the property configuration, tenancy arrangements, licensing position, expected rent and landlord experience.
Where substantial refurbishment is required or the property is not currently suitable for occupation, bridging finance may need to be considered before a buy-to-let mortgage becomes available.
We begin with the property, purchase price or value, expected rent, deposit or equity and amount required.
We also establish how the property will be owned, the intended tenancy and how the transaction fits with your wider property plans.
We assess the rental figures, property type, borrower and existing portfolio.
Where something could limit the available options or affect the proposed timetable, we aim to identify it early and explain what needs to be checked.
We consider lenders whose rental calculations, property criteria and ownership requirements appear suited to the transaction.
We then explain the recommendation, principal conditions and costs before preparing and submitting the application.
We remain involved while the lender completes its valuation and underwriting.
You will be kept informed about where the application stands, what is being reviewed, whether anything further is required and what needs to happen next.
Jayhawk Capital was built around direct advice, accurate preparation and constant client communication. For buy-to-let, that means understanding the property, the rental figures and the wider portfolio from the outset.
A buy-to-let mortgage does not always sit in isolation.
A landlord may be raising capital for another purchase, refinancing after refurbishment, retaining completed development units or reviewing borrowing across several properties. Jayhawk Capital’s experience across buy-to-let, bridging, development, commercial and residential finance allows us to consider how the different parts of a property plan connect.
Our aim is to arrange finance that supports the immediate transaction without overlooking what you intend to do next.
We believe in giving a direct answer at the beginning, preparing the application accurately and keeping you clear on where the transaction stands throughout the process.
This can be particularly useful where:
The deposit required will depend on the lender, property, expected rent, borrower and ownership structure.
Providing a larger deposit reduces the proportion being borrowed against the property and may increase the range of mortgage options available.
We will need to understand the full transaction before giving a meaningful indication of what appears realistic.
The amount available will usually be influenced by the rent the property is expected to generate.
Each lender applies its own rental calculation. The result can also be affected by the mortgage product, property value, ownership structure and applicant.
Some lenders may consider personal income where the rent does not support the full amount under the standard calculation.
Yes. Lenders can consider applicants purchasing their first rental property.
The available options may depend on whether you already own your home, your income, deposit, credit history, proposed property and expected rent.
Potentially. Some lenders consider applicants who do not already own a residential property, while others require at least one applicant to be an existing homeowner.
The lender may look more closely at the reason for the purchase, personal affordability and intended use of the property.
The appropriate structure will depend on your individual circumstances and longer-term plans.
Personal and limited company mortgages can differ in availability, rates, fees, rental calculations and legal requirements.
Jayhawk Capital can explain the mortgage implications. You should obtain tax advice from a suitably qualified accountant or tax adviser before deciding how to own the property.
Potentially. The amount available will depend on the property value, outstanding mortgage, rent, applicant and lender criteria.
The lender will also want to understand how the additional funds will be used.
Increasing the mortgage can affect the rental coverage, monthly cost and wider level of portfolio borrowing.
You may be able to obtain consent to let from the current lender or remortgage the property onto a buy-to-let mortgage.
The appropriate route will depend on the existing mortgage terms, property, intended tenancy and how long you expect the property to be let.
You should obtain the lender’s required permission before letting a property secured by a residential mortgage.
Yes, although an HMO will often require a specialist mortgage.
The lender may consider the number of occupants, room and tenancy arrangements, licensing position, expected rent and landlord experience.
It will depend on the property’s current condition and the extent of the proposed work.
A property requiring light cosmetic improvement may still be considered for a buy-to-let mortgage.
Where substantial work is required or the property is not currently habitable or lettable, bridging or refurbishment finance may be more appropriate initially.
Many buy-to-let mortgages are arranged on an interest-only basis, although repayment mortgages are also available.
With an interest-only mortgage, the regular payments do not reduce the original capital balance. A credible plan will therefore be needed to repay the mortgage at the end of the term.
The appropriate structure will depend on the rental income, cash flow and longer-term plan for the property.
The regulatory position depends on the nature of the transaction and the reason the property is being let.
Many buy-to-let mortgages arranged for business investment purposes are not regulated in the same way as residential mortgages. Different treatment can apply to certain consumer or family-related buy-to-let arrangements.
We will explain the relevant position once we understand the circumstances.
Great customer experience! John was brilliant start to finish and really supported us throughout the whole process. Bridging loans were all new to us so John really took the time to make sure the loan was right for us, along with explaining everything in detail. We had a short timescale and John again made sure this was pushed along at each point in the process
Adviser: John Symons
You may be considering a first rental property, adding to an established portfolio, refinancing existing borrowing or raising capital for another investment.
Tell us about the property, expected rent, amount required, ownership structure and timeframe.
We will review the initial details and contact you to discuss what appears possible, which routes may be worth exploring and what information is needed next.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Some buy-to-let mortgages are not regulated by the Financial Conduct Authority. The regulatory position will depend on the nature and circumstances of the transaction.
Jayhawk Capital may charge a tailored broker fee of up to 1% of the loan, subject to a minimum fee of £500.
For mortgage applications, the fee is generally payable when the mortgage offer is issued. The amount and payment stage will be confirmed before you decide to proceed.
Your buy-to-let mortgage may also connect to other areas of property finance. Explore related services offered by Jayhawk Capital.
