Barclays is one of the UK’s best known high street banks and offers buy to let finance for people looking to invest in the rental market.
Types of Buy to Let mortgage
If you are interested in a buy to let mortgage with Barclays, there are several main types you will need to consider.
Interest only buy to let mortgages allow you to keep your monthly repayments low, but mean you are not clearing any of the capital on your mortgage. This will have to be paid off in one go when the mortgage ends.
Capital and interest mortgages mean you pay off some or all of the capital over the lifetime of the mortgage by making higher monthly payments.
Fixed rate buy to let mortgages give set interest rates, usually for 2-5 years, at the start of your mortgage term. This can make financial planning easier.
Tracker mortgages keep your interest rates at a set interval above the Bank of England Base Rate (or an equivalent) so your interest rates keep pace with inflation.
Lending criteria for Barclays Buy to Let mortgages
To qualify for a Barclays buy to let mortgage you must:
- Be 21 years old or over
- Own a residential property in the UK (either outright or with a mortgage from a UK lender)
If you qualify, you may be able to:
- Borrow up to 75% of the property’s market value
- Borrow up to £1million per property (up to a total of £3million spread across no more than 6 buy to let properties)
Lending criteria vary from provider to provider, so if Barclays does not offer a good match for your borrowing needs or personal circumstances you may still be able to access the money you need from another lender.
A professional mortgage advisor will be able to help you find the most appropriate deals for you.
Interest rates on Barclays Buy to Let mortgages
With any buy to let finance, the interest rate you pay is one of the most important factors in determining how much of a return you will earn on your investment.
It’s also worth remembering that most lenders will require your monthly rental income to exceed your interest payments, so the higher your interest payments, the more you will need to charge in rent.
One of the main things which will affect your interest rate is your LTV or loan to value ratio.
This shows how much you are looking to borrow as a percentage of the market value of the property in question. So a £70,000 mortgage on a £100,000 property equals an LTV of 70%. Interest rates normally tend to be higher on mortgages with a higher LTV.
Compare Buy to Let mortgage rates
Want to find the best possible interest rates for your buy to let finance? Our free mortgage calculator makes this much easier.
Simply follow the link and where it says “Reason for mortgage” select “Buy to Let”. You will then see matching deals from all the leading lenders allowing you to see which offer the very best value for your borrowing requirements.
Independent Mortgage Advice
Remortgaging is particularly popular at the moment as interest rates are low.
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Whether it will be a good idea for you to remortgage your buy to let(s) depends on a number of factors, including your goals and your personal circumstances.
However, in general, if interest rates are lower than you are currently paying on your mortgage, it may be a good time to remortgage.
If interest rate are higher than you are currently paying, it may be better to look at other options, such as a second mortgage or a personal loan (if you aim is to borrow more).
If you are not sure whether now is the right time to remortgage, it is a good idea to speak to an independent mortgage broker who will be able to offer impartial advice on Barclays btl mortgages as well as other lenders.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
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Mortgages Direct provides an independent mortgage quotes and advice service. When you submit this form you will be contacted by a regulated mortgage adviser to discuss your options.
