How Many Buy to Let Mortgages Can I Have?

FREE cash offer within minutes
<strong>How Many Buy to Let Mortgages Can I Have?</strong>
  • Free cash offer within minutes. Receive funds within 7 days.

Lots of people enjoy investing in property. Many landlords make significant sums of money by purchasing houses and then renting them out to tenants – with some even making this their sole source of income.

In this instance, for someone trying to go down this route, taking out multiple buy to let mortgages can be valuable. But is taking out multiple buy to let mortgages even possible – and if so, how many are you able to take out?

We’ve provided clear answers to these questions, and more, in the blog below.

What is a Buy to Let Mortgage?

A Buy-to-Let mortgage means that a property has been purchased with the sole purpose of being rented out to tenants. Someone who takes out this type of mortgage will typically agree with the building society or bank that the property will be used specifically for this reason.

The vast majority (although not all) of buy to let mortgages are interest-only. This means that you don’t immediately pay off the full sum of the mortgage, and instead only have to initially pay back the interest on the loan. However, you must be willing to either remortgage, sell the house or pay off the loan in full at the end of the mortgage period.

With a buy to let mortgage, the amount that you will be charging for rent dictates the amount that you can apply for. In this rare instance, your salary is almost insignificant. The higher the rent you will be charging, the larger the mortgage you can get.

Finally, buy to let properties typically require a larger deposit (at least 25% in many cases) because they are considered a riskier investment by the lender.

How Many Buy to Let Mortgages Can I Have?

Technically speaking, there is no limit to the number of buy to let mortgages someone in the UK can have. However, individual lenders will usually limit the amount of money that they are willing to lend one person, simply to minimise their risk.

Most major mortgage lenders in the UK will limit the number of buy to let mortgages one person can have at somewhere between 3 and 5. However, some smaller lenders may let you take out as many as you like.

While the big lenders’ limitations do not stop any individual from approaching another mortgage lender, some lenders set restrictions on how many mortgages you can have with other lenders.

You should also keep in mind that the more buy to let mortgages you take out, the more ‘hoops’ you may have to jump through in the application process. This is simply so the bank or building society can ascertain that you are a reliable recipient of their loan.

Why might someone want multiple Buy to Let Mortgages?

Property developers and investors are the most common people that want to take out multiple buy to let mortgages. These individuals will often generate most of their income from the rent payments made by tenants – so the more buy to let mortgages they have, the more money they are able to make.

Pros and cons of having multiple Buy to Let Mortgages

Lots of property developers and investors are able to make huge amounts of money by taking out lots of buy to let mortgages. This can provide a significant financial advantage to taking out lots of this type of mortgage.

On the other hand, taking out multiple buy to let mortgages can be time-consuming and risky. With lots of tenants, it can be even more challenging to ascertain that they are all highly reliable, and are continuing to follow all the terms of your agreement. It may also be more time-consuming for landlords to maintain all the properties in their portfolio – especially if there are lots for them to keep track of.

Buy to let mortgages typically have higher interest rates, and higher deposits, so landlords keen to take out several mortgages will need to factor this into their calculations, when deciding whether multiple mortgages is a worthy investment.

Sell your property with WeBuyAnyHome

WeBuyAnyHome are chain-free cash house buyers who can purchase your property up-front and quickly, without hassle or stress. You are in the perfect place to sell your house fast.

Using our own funds, we will purchase your property at a set price, by a date of your choosing, fully managed from beginning to end.

Any location, any condition, we buy any house. We can provide you with an offer for your UK property – Cardiff to Clyde, Durham to Dover. Our specialist team have helped assist thousands of people to a quick and stress-free house sale.

Are you looking for more guidance on selling with tenants? Click on the link to read our blog on this subject.

Fill in our enquiry form below if you are interested in getting a cash offer for your house.

Free cash offer within minutes, any condition, any location.

Posts Related To Sell A Tenanted Property

View all articles
Joint Tenants vs Tenants in Common, What’s the Difference?
Is It the End of the Buy to Let Boom?
How Much Can a Landlord Raise Rent in a Year?
Consent to Let – Everything You Need to Know
Dealing with Problem Tenants
How Much Does a Sitting Tenant Devalue a Property?
The Rise of Build to Rent
What Should I Ask Potential Tenants When Looking to Rent Out My House?
Can a Landlord Keep a Deposit – and If So, When?

Get a free cash offer today
Enter your details below

"*" indicates required fields

This field is for validation purposes and should be left unchanged.