Santander Buy To Let Mortgage
Santander is part of the Spanish Santander Group which is one of the world’s largest banking groups. They offer buy to let finance in the UK for first time landlords and those looking to extend existing rental portfolios.
These mortgages are only available through intermediaries, however, so you will need to use a mortgage broker if you wish to access buy to let finance from Santander.
Types of Buy to Let mortgage
There are several common types of buy to let mortgage which may be relevant to your borrowing needs and repayment requirements. Which you choose will affect how much interest you pay and whether you choose to pay more each month and less or nothing when your mortgage ends, or less each month and have the capital left to pay off at the end of your loan term.
Interest only buy to let mortgages – Let you minimise your monthly repayments and leave paying back the capital until the end of the loan term.
Capital and interest mortgages – Mean you pay more each month, but gradually pay off some or all of the capital. This reduces the amount you are paying interest on each month and leaves you with less, or nothing, to pay when the mortgage ends.
Fixed rate buy to let mortgages – Give you a set interest rate for an introductory period (usually 2-5 years) after which you pay a standard variable rate.
Tracker mortgages – Set your interest rate at a pre-agreed interval above the Bank of England Base Rate so your rates tend to stay in line with inflation over the lifetime of the mortgage.
Lending criteria for Santander Buy to Let mortgages
To be considered for a buy to let mortgage with Santander:
- At least one applicant must be employed or self-employed
- At least one applicant should own their own home
- The projected monthly rental income must exceed the monthly mortgage payments
- The property must be worth at least £75,000
If you qualify you can:
- Borrow up to £750,000
- Borrow up to 75% of a property’s market value (70% on new build flats)
It is also worth considering other providers as their lending criteria may be a better match for your requirements and circumstances. To find out more about your options and get the best deal possible, it is highly recommended to discuss your borrowing needs with a mortgage advisor.
Interest rates on Santander Buy to Let mortgages
How much interest will you pay on a buy to let mortgage? It depends on a number of different factors, most obviously how much you need to borrow and how long for. Perhaps less obvious though, is the influence of your loan to value ration or LTV.
LTV is a way of showing how much you want to borrow as a percentage of the property in question’s market value. So, if you need to borrow £50,000 on a £100,000 property, you will have an LTV of 50%. Lenders typically give better interest rates on mortgages with a lower LTV as this is seen as being a lower risk for them.
Compare Buy to Let mortgage rates
Getting the best rates on buy to let mortgages can involve a lot of work checking different brands and their products. Our free mortgage calculator makes things much easier, allowing you to see all the best deals on buy to let mortgage finance in one place.