Case Studies - Buy-to-Let Mortgages
Our residential buy-to-let mortgages offer medium term (max. 5 years) solutions for new and experienced landlords who require bespoke finance for their investment plans.
Latest Case Studies
Case Studies - Buy-to-Let MortgagesCase Studies - Refinance
Addressing how a shortfall would be covered for a BTL investment
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Case Studies - Buy-to-Let Mortgages
Exploring our repayment options to provide breathing space for a first time landlord
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Case Studies - Buy-to-Let Mortgages
Finding solutions for credit history issues for a BTL investment
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Case Studies - Buy-to-Let Mortgages
Focusing on the whole picture for foreign investors in the UK buy-to-let market
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Case Studies - Buy-to-Let Mortgages
Going through the details for a challenging BTL investment
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Case Studies - Buy-to-Let Mortgages
Helping a first time landlord with a multi unit freehold property purchase
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Case Studies - Buy-to-Let Mortgages
Helping a landlord with tenants in situ cover an existing charge
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Case Studies - Buy-to-Let Mortgages
Internal teamwork for a complicated deal with multiple properties
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Case Studies - Buy-to-Let Mortgages
Providing a way forward for a BTL investor with missed payments
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Case StudiesCase Studies - Buy-to-Let Mortgages
Returning offshore borrower looking to overcome tight BTL deadlines, with speed and security
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Case ScenariosCase Studies - Buy-to-Let Mortgages
The tools at our disposal to help with LTV limits and tricky business plans
Read case studyAdaptable Buy-To-Let Mortgages
We launched our residential buy-to-let mortgage specifically for investors, offering them flexible finance solutions for their needs. Borrow up to £3m per property or up to £10m for a portfolio. Our 5-year term mortgages feature low Early Repayment Charges (ERC) for the first two years, and no ERCs at all in the final years, making them ideal for those looking to optimize their investments.
We excel at simplifying complex situations with a bespoke approach to buy-to-let mortgages, and expert underwriting. Each case is handled by the same contactable underwriter from enquiry to completion, ensuring a smooth and personalised experience. Unlike other lenders, we don’t rely on rigid tick-box criteria – we always look for ways to lend, rather than find reasons not to.
As the only lender to roll and defer interest to maximize loan size, we also offer significant advantages to higher rate taxpayers by utilising a 130% Interest Coverage Ratio (ICR) across the board. Our residential buy-to-let mortgage products are tailored to meet the needs of a complicated, often challenging market.
5 easy steps towards your residential buy-to-let mortgage
Step 1: Loan Enquiry & Indicative Terms
Reach out to us via phone, email, or online—whichever way suits you best. Our underwriter will need a few details to provide an indicative tier, rate, and loan size. We offer various tools to make the Interest Cover Ratio (ICR) work for you.
- Response time: Within 4 hours of an enquiry
Step 2: Underwrite & Issue DIP
If you’re satisfied with the initial terms, we’ll request a few documents to finalise the underwriting process. We’ll then issue ‘credit approved terms’ in the form of a Decision in Principle (DIP), verified by our Credit Committee for reliability.
- DIP issued: Typically within 24 hours
Step 3: Valuation
Once the DIP is signed, and the valuation and admin fees are paid, we move towards valuing the property. Your dedicated underwriter will select the best terms and timescales from our panel for your specific circumstances. The valuation confirms the security details on which the DIP is based.
- Instruction: Usually in less than 24 hours of fees clearing
Step 4: Legal Documentation
At this stage, our solicitors step in to issue contracts and progress the case toward completion. We use a trusted panel to ensure timely completions, keeping you informed at every step.
- Instruction: quickly and only use firms we know and trust
Step 5: Loan Drawn Down
The loan is now ready to be utilised. An MFS residential buy-to-let mortgage can be put towards houses, flats, HMOs and more.
- Timeframe: Depending on your circumstances, capital can be issued within a week from the initial enquiry.
Residential Buy-To-Let Mortgages –
All you need to know:
Main features
An MFS residential buy-to-let mortgage can cover:
- First timers to Portfolio Pro’s – up to £10m with MFS
- Higher Loan Sizes: We strive to lend more than other BTL lenders by boosting loan sizes through deferred interest, rolled-up/deferred months, and top slicing
- Breathing space with rolled Interest: For example, roll two months of interest to complete light refurbishments, or secure a tenant before starting monthly payments
- Diverse Property Types: We finance holiday lets, unlimited HMOs, 30-unit MUFBs, and more
- Flexible Term Lengths: 5-year terms with the possibility to exit early, providing flexibility for various investment strategies.
- Specialised financing: We cater to expats, foreign nationals, trusts, offshore companies, and other unique setups
- Comfort with large loans: We handle large loans, such as £3 million at 75% LTV on single properties, or up to £10 million for portfolio investments
- Ideal for exit strategies: Use an MFS bridging product to convert or refurbish a property, and then transition to our longer-term BTL range
How does the mortgage work?
A residential buy-to-let mortgage is an investment mortgage for properties that owners rent out to a third party in exchange for rental income. Typical tenants can include a single person, a family, unrelated groups (such as students or multiple tenants each renting a room), and short-term operations such as AirBnB.
Most buy-to-let mortgages are interest-only, meaning only monthly interest is paid on the loan amount. However, the principal borrowed at the start must be repaid at the end of the term. This can be achieved by selling the property, using savings to settle the debt, or re-mortgaging with another lender.
Fees involved
When arranging a residential buy-to-let mortgage with MFS, you should be aware of the following fees:
- Admin Fee: £199 per property (up to a maximum of £995), payable when you proceed to a property valuation
- Product Fee: Starting from 2% of the loan amount, this fee is paid when the loan is redeemed
- External Fees: These include valuation and solicitor fees. Every property requires a valuation by a surveyor, and a solicitor must be involved to ensure all details are correct, and ownership is properly recorded
How to apply
You can apply for BTL finance with a deposit of at least 25%, so long as your circumstances fit in with our criteria. It’s crucial to find a mortgage lender that understands and addresses your specific needs.
Our products are designed according to multiple “tiers” to accommodate a variety of requirements. You can find all the details and applicable products for your situation with our calculator.
Alternatively, contact our mortgage team. They are ready to discuss your needs and help you find the best product for you.
I have adverse credit
Our residential buy-to-let mortgages can accommodate clients with adverse credit, so long as their investment plans are sound, and there is a clear exit strategy at hand. We can consider the following issues during the application process:
- Missed mortgage payments
- Unsecured card or loan repayments
- County Court Judgments (CCJs) and defaults
- Bankruptcy, Individual Voluntary Arrangements (IVA), or Debt Relief Orders (DRO)
Is this an interest-only mortgage?
Our fixed-rate and tracker mortgages are interest-only, but we offer options to defer up to 2% of payments and/or roll up to 9 months of payments. This allows for larger loan sizes and added flexibility.
Do I need a deposit?
The deposit needed will depend on your loan-to-value. Our maximum loan-to-value is 75% (for our Solutions BTL & Specialist BTL) and 70% (for our bespoke level). This means the minimum deposit you will require will be 25% of your property’s value.
Re-mortgaging
Certainly. Whether you’re considering switching from another provider, transitioning from a different financial product like a bridging loan, or applying for another flexible buy-to-let mortgage from MFS, we will evaluate your application and offer appropriate solutions where possible.
Can I change my mortgage?
Yes, this is possible, but it hinges on how you plan to utilise the property. Your finance provider might permit you to switch to a ‘consent to let’ agreement. However, certain lenders may mandate that you obtain a new mortgage specifically designed for buy-to-let purposes when transitioning. Additionally, you must ensure that your property complies with your local council’s regulations and guidelines for buy-to-let properties if you are altering its usage.
Not sure where to find this information? Visit gov.uk for more details.
