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0330 223 4973
info@simsmortgages.co.uk

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  • About Us
  • Mortgages
    • Mortgage Advice
    • First-Time Buyer Mortgage
    • Remortgage
    • Buy–To–Let Mortgage
    • Home Mover Mortgage
    • Types of Mortgages
    • Mortgage Glossary
  • Insurance
    • Insurance Advice
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Buy–To–Let Mortgage

A buy-to-let mortgage is a type of Mortgage used to purchase a property that is intended to be rented out to tenants; unlike a residential mortgage, used to buy a property for personal use, a buy-to-let mortgage is specifically designed for landlords who want to invest in property to generate rental income.

Types of Mortgages

What Is a Buy-to-Let Mortgage?:

A buy-to-let mortgage is a type of loan specifically designed for people who want to purchase property to rent out to tenants. Unlike a residential mortgage used to buy your own home, a buy-to-let mortgage is tailored to landlords — whether you’re making your first investment or expanding your portfolio.

How Much Deposit Do I Need?

Most lenders require a minimum deposit of 25% of the property’s value, although some may accept as low as 20%. The more deposit you can provide, the better the mortgage rate you’re likely to get.

How Do Lenders Assess Rental Income?

To ensure your investment is viable, lenders use a ‘rental stress test’. This means the projected rental income typically needs to cover between 125% and 145% of the monthly mortgage repayments — based on a notional interest rate (often around 5% or higher).

Interest-Only or Repayment?

Most buy-to-let mortgages are interest-only — you pay only the interest each month and repay the full loan amount at the end of the mortgage term. Repayment options are available too, which allow you to build equity in the property over time.

What If I Own More Than One Property?

If you have four or more buy-to-let properties, you’re classed as a ‘portfolio landlord’. This comes with more detailed affordability checks, such as providing business plans and rental income across your whole portfolio. We can help you meet these criteria.

How Is Buy-to-Let Income Taxed?

Rental income is taxable, and you must declare it via a Self Assessment tax return each year. Since recent tax reforms, landlords no longer receive full mortgage interest relief. Instead, a 20% basic rate tax credit is available. For tailored advice, we recommend consulting a tax advisor.

Buy-to-Let Stamp Duty

Buy-to-let properties are subject to a 3% Stamp Duty surcharge on top of standard residential rates. Be sure to factor this into your purchase budget.

Landlord Licensing & Legal Responsibilities

Depending on your local authority, you may require a landlord licence. As a landlord, you’re also responsible for safety regulations, protecting tenant deposits, and maintaining the property in a liveable condition. We’ll help guide you through these obligations.

Why Choose Sims Mortgages & Protection?

• Whole-of-market access to 90+ UK lenders

• Exclusive buy-to-let products and rates

• Tailored advice from CeMAP-qualified experts

• Support for first-time landlords and property investors

• Flexible appointments — face-to-face, phone or video

Whether you’re buying your first investment property or refinancing an existing portfolio, our team of Derby-based buy-to-let mortgage advisors are here to help. Book your consultation today.

It’s important to note that investing in property comes with risks, such as the possibility of rental income not being sufficient to cover mortgage payments or unexpected maintenance costs. It is essential to carefully consider the risks and rewards before deciding to take out a buy-to-let mortgage.

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority

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Your home may be repossessed if you do not keep up repayments on your mortgage

Absolutely fantastic service!! Ro is so lovely to deal with. Nothing was too much trouble, always at hand on email or the phone; fitting it around our working schedule. Has worked extremely hard to get our mortgage offer approved, and had the go ahead today!

— Bex Fairweather- 2025

I would highly recommend the services of Sims. We used them in relation to a mortgage.

They were efficient and friendly.On this occasion we dealt with Rowena who made what can be a stressful experience a breeze! They covered all the basis, were straight up with their advice and no hard selling or pushing of other services, while still making us aware of the additional services they offered in line with the mtges should we need them.

Thank you Sims!

— Donna Pacey- 2025

I was really nervous about the whole mortgage process and knew not much at all, but Ro made it so much easier than I ever expected. From day one, she took the time to explain everything in a way that actually made sense and never made me feel like any question was too small. She was always easy to reach whenever I needed her, and being able to contact her via WhatsApp made life so easy—I could just drop her a call or text whenever something came up. Ro was honest about my current situation and the implications of income/debt etc. but was still positive.

When we hit a few bumps along the way, Ro kept me calm and found the best options to move forward. I never once felt like I was just another client—she was genuinely invested in getting me the best deal and just as excited about my new home as I was!

I honestly wouldn’t work with anyone else. If you need a mortgage advisor who’s knowledgeable, patient, and truly in your corner, Ro is the one!

— Catherine Boyle- 2025

Ro is honest, thorough and gives amazing service.

As first time buyers, we had no clue on what to expect or who we should trust. She helped sort more than our mortgage but also surveyor and solicitors. Always open for all the questions and makes it very clear that no question is a stupid one. She made this rocky road much smoother.

— Sarah Horobin- 2025

Ro has been absolutely amazing from start to finish! She has helped me with every aspect of getting a mortgage and beyond! She is friendly, kind and just a genuinely lovely lady who wants the best for you. She’s answered all my silly questions along the way and If I’ve been stuck on anything she’s just at the end of the phone!

— Rebecca Dudley - 2025

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Get in Touch

We'll be happy to offer you a consultation to discuss your options.

Sims Mortgages and Protection
1228a London Road, Alvaston Derby Derbyshire
United Kingdom DE24 8QP
0330 223 4973
info@simsmortgages.co.uk

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Local Experts with National Reach

We’re based in Derby, but we proudly serve clients across the East Midlands and the entire UK. Our flexible service model allows us to provide outstanding support no matter where you’re located.

📞 Ready to talk? Contact us today to book your consultation.

Sims Mortgages and Protection is a trading name of Sims Financial Services Limited, an Appointed Representative of PRIMIS Mortgage Network, a trading name of Personal Touch Financial Services Ltd. Personal Touch Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. Trading address: 1228a London Road, Alvaston, Derby, DE24 8QP. Registered Office: Vicarage Corner House, 219 Burton Road, Derby, Derbyshire, England, DE23 6AE. Sims Mortgages and Protection Ltd is registered in England and Wales with registration number 10473297

For mortgages, we are paid a fee, usually £500 and by commission from the lender

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The guidance and/or information contained within the website is subject to UK regulatory regime and is therefore targeted at consumers based in the UK.

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