Buy to Let Mortgages in Reading & Caversham
Whether you are buying your first rental property or expanding an existing portfolio, buy-to-let mortgages work differently from residential mortgages. At Templar Mortgages, we specialise in buy-to-let lending and work with lenders working nationally and who understand the rental market in Reading, Berkshire and Oxfordshire.
Our Buy To Let services
First-Time Landlords
Becoming a landlord for the first time is a significant decision. We guide first-time landlords through the entire process, explain costs involved, help you understand rental yield calculations, and find lenders who are welcoming to new landlords.
Portfolio Landlords
If you own or are looking to own four or more rental properties, you are classified as a portfolio landlord. We work with specialist lenders who understand property investment and can help you expand your portfolio efficiently.
Limited Company Buy-to-Let
Many investors now purchase rental properties through limited companies for tax efficiency. We work with independent tax advisors that can advise owning buy-to-let properties personally or via a Limited Company. Advice can also be given in respect of Estate planning and Blood Line planning.
How Templar Mortgages helps you
Free Consultation
We start with a free, no-obligation conversation about your situation. We can meet in person at our Caversham office, over the phone, or by video call.
Search & Recommendation
We search our extensive panel of lenders to find the options that best suit your circumstances. We explain your choices in plain English and recommend the most suitable solution.
Application to Completion
We handle everything from application through to completion. You will have easy access to your adviser throughout, making the process smooth and stress-free.
Why choose Templar Mortgages?
Plain English Service
We explain everything in clear, simple language without confusing jargon.
Local Expertise
Based in Caversham, we understand the Reading and Berkshire property market.
Extensive Market Access
We search our large panel of lenders for the right solution for you.
Transparent Fees
No hidden charges. We tell you upfront what our service costs.
Common questions about buy to let mortgages
Common Questions About Buy to Let Mortgages
Most buy-to-let mortgages require a minimum deposit of 25% of the property value, though some lenders may accept 20% for certain properties or experienced landlords. The larger your deposit, the better interest rates you will typically access. Buy-to-let deposits are higher than residential mortgages because lenders view rental properties as higher risk.
How do lenders assess buy-to-let mortgage affordability?
Unlike residential mortgages which are based on your salary, buy-to-let mortgages are assessed on the expected rental income. Most lenders want the rent to cover 125-145% of the mortgage payment. For example, if your mortgage payment is £1,000 per month, lenders typically want rent of at least £1,250-£1,450 per month. Your personal income may be considered but is less critical.
Can I live in a buy-to-let property?
No. Buy-to-let mortgages are specifically for properties you intend to rent out to tenants. If you want to live in the property yourself, you need a residential mortgage. Living in a buy-to-let property would breach your mortgage terms and could result in the lender demanding immediate repayment. If your circumstances change and you want to move into your rental property, speak to us about switching to a residential mortgage. Conversely, we can help swap from a residential mortgage to a buy-to-let mortgage if you want to start renting your home.
What is a portfolio landlord?
You are classified as a portfolio landlord if you own four or more mortgaged buy-to-let properties (either personally or through a limited company). Portfolio landlords can face additional scrutiny from lenders, including stress testing across the entire portfolio. We work with lenders who specialise in portfolio landlords and understand the complexities involved.
Should I buy through a limited company or in my own name?
This depends on your personal tax situation. Since 2017, tax relief on mortgage interest for individual landlords has been restricted, making limited company ownership more tax-efficient for higher-rate taxpayers. However, limited company mortgages often have slightly higher interest rates, and there are costs involved in setting up and running a company. We can discuss your situation and help you make an informed decision, though you should also consult an accountant for tax advice.
What are the tax implications of buy-to-let?
As a landlord, you pay income tax on your rental profits (after allowable expenses). You may also pay Capital Gains Tax when you sell a rental property. If you own properties through a limited company, the company pays Corporation Tax on profits instead. Tax rules for landlords have changed significantly in recent years. We recommend speaking to an accountant who specialises in property taxation for specific advice on your circumstances. We can also refer you to an independent tax advisor how specializes in such assessment decisions.
How long does it take to get a buy-to-let mortgage?
Buy-to-let applications can sometimes take longer than residential mortgages particularly if the property is unusual or if you are a portfolio landlord requiring additional checks. We keep the process moving as quickly as possible and keep you informed throughout.
Do I need landlord insurance?
Yes. Standard home insurance does not cover rental properties. You need specialist landlord insurance. Many landlords also take out rent guarantee insurance to cover lost rent if tenants default, and legal expenses insurance to cover eviction costs if needed – this is also an area that we can assist you with.
Most Buy to Let mortgages are not regulated by the Financial Conduct Authority
