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Borrow up to 85% loan to value
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100% buy to let mortgages
With equity in your home, or another property, you could get a no deposit buy to let mortgage.
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Can I get 100% borrowing on a buy to let mortgage?
The way to achieve 100% buy to let mortgage involves borrowing against equity in other property you own. This could be your home, a buy to let or commercial property. You will need to own the property outright, or with a mortgage with available equity. The maximum loan to value on the property you are borrowing against – after the additional funds have been raised – is 75% of the property value.
If you have this level of equity, or own a property outright that you can borrow against, then you could borrow the full value of another property you want to buy (using borrowing from your equity as a deposit and taking out a mortgage for the rest of the funds).
You can, in the future, remortgage and pay off the extra borrowing you raised from your other property.
Factors that may impact you getting a buy to let mortgage
- Some types of poor credit
- Not having enough equity in your residential home
- The value of the property you are buying being less than you expect
If you are ready to start a mortgage application, chat to our advisors on live chat, via the phone, or get a call-back, we're here to help.
We work with over 80 UK buy to let mortgage lenders, including:
Eligibility
- First time buyers to experienced landlords
- You must be over 18 years old
- A minimum of 25% available equity in your home
- Upper age limits at application are flexible
- Low personal incomes are accepted
- Property, pension and employment income is OK
Ready to get started?
Your personal advisor will call. Direct lines start 01603. Get today's rates, help, or apply. Lender terms provided in as little as two hours!
How does 100% buy to let mortgage borrowing work?
Typically, when you take out a buy to let mortgage you have to put down at least 15% of the value of the property you are buying, of your own money, as a deposit. This reduces the risk to the lender of giving you a mortgage, as it shows them you are taking on some of the risk of buying the property.
If you need to raise 100% of purchase price of a property, the lender needs some other way of reducing the risk they are taking on. They do this by using available equity in another property you own as security. This could be your home, or another buy to let property or commercial property that you own.
When using another property as security, the lender will place a legal 'charge' on it. This means the lender - as part of the mortgage agreement with you - will put a legal document in place, which means that if you don't keep up with your monthly mortgage payments they have a claim on part of the value of your property.
If you already have a mortgage on the property, you might be able to remortgage and raise capital to raise your deposit. If you are mid-way through an initial rate period of an existing mortgage and do not want to pay any applicable Early Repayment Charges (ERCs), or you are on a really good mortgage interest rate and don’t want to change it, then you can use a second charge buy to let mortgage, with permission from your primary mortgage lender.
Considerations when extending borrowing
In extreme circumstances of a borrower failing to keep up with mortgage payments, the 'security property' will become the possession of the mortgage lender, who will sell it to get back the money they are owed.
So, when you enter into an agreement to secure 100% buy to let mortgage borrowing, you are putting two properties at risk of repossession. This sounds and is serious, but, if you have confidence that you will be able to keep up with your mortgage payments and do so, it won't happen.
Mortgage lenders also have an obligation to ensure a mortgage they offer you is affordable, as well as you making your own checks to ensure that the income you get will remain constant, so you can make the payments. The lender will use their own mortgage affordability calculation. So there are ways a lender must check that you are not overstretching yourself financially as well as your own checks.
It is also possible buy a commercial property with no deposit in a similar way, see our page on 100% commercial mortgage borrowing.
Why choose Commercial Trust?
Apply with ease by phone
It couldn't be easier to secure a buy to let mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.
World class customer service
We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.
Lender decision in 2 hours
By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.
We can help you with...
- 100% buy to let mortgage borrowing
- No minimum income options
- Lenders with no upper age limits
- Flexible affordability calculations
- 2, 3, 5, and 10 year deal periods
- Cashback, free valuation and other incentives available
- Borrowing based on rental income from property
- Switch from residential mortgage to buy to let mortgage
- Unlimited portfolio sizes
- Remortgage to like for like loan, or to raise capital
- Houses of Multiple Occupation (HMO) options with no maximum number of bedrooms
- Multi-unit blocks options with no maximum number of units
- Special Purpose Vehicle (SPV) buy to let accepted
- Trading limited company buy to let accepted
- First time buyers accepted
- Repayment or interest-only mortgage payment options
- Finance for property development or auction purchase
Costs involved with a 100% buy to let mortgage
Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.
You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.
We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.
Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.
How to apply for a 100% buy to let mortgage
1
Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.
2
Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).
3
Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage that is the best match for all your needs and offers you the most cost effective option.
4
On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.
Commercial Trust is a member of the Legal & General Mortgage Club.
We chose to work with Legal & General as they are the largest, longest-running club in the UK.
This gives our clients the confidence that their borrowing is with a lender selected by an established and trusted club, who are involved in nearly one in three mortgages processed by intermediaries like us.
