Buy-to-Let Mortgage
Are you looking to invest in a rental property? When purchasing an investment property, we stand by your side from start to finish. We offer tailor-made solutions and make the complex financing process clear and straightforward for you.
Mortgage Center
Buy-to-Let
To share:
- ProviderRate %
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ABN AMRO
3.45%
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Rabobank
3.69%
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ING
3.60%
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ASN Bank
3.38%
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Lloyds Bank
3.25%
Investment Scan
Before you buy a property, we look at your financial capacity. How much of your own money do you have and what is the intended return? We make a trial calculation in which we offset the expected rental income against the mortgage costs.
Search and market value
You will start looking for a suitable property. Pay attention to the location and the rentability.
Tip from Mortgage Center: A buy-to-let mortgage is based on the ‘market value in rented state’. This is often lower than the value for owner-occupancy.
Introduction of the Affordable Rent Act
The introduction of the Affordable Rent Act (Wet betaalbare huur) has a major impact on the return for real estate investors. With this, the government wants to regulate rental prices for middle incomes, but for you as a landlord, this means that the rules for determining rent and taxation have changed.
On top of that, receiving support in the Netherlands in our mother tongue was truly invaluable. It made everything so much clearer and easier to navigate. We are deeply grateful to have had Engin by our side. He will forever remain a key part of our journey to purchasing our new home in the Netherlands. Thank you, for being such an incredible envoy in making our dream come true!
Thank you!
Frequently Asked Questions
This is the most frequently asked question, because the rules are stricter than for a normal home.
LTV limit: With a buy-to-let mortgage, you can usually borrow a maximum of 70% to 80% of the market value in rented state.
Own contribution: You must therefore contribute at least 20% to 30% of the purchase price yourself.
Buyer’s costs: Don’t forget that you also have to pay the additional costs, such as the increased transfer tax of 8%, entirely out of your own pocket.
Many people want to keep their old home to rent it out when they move, but usually this is not allowed just like that.
Owner-occupancy clause: Almost all standard mortgage deeds state that you must live in the house yourself and are not allowed to rent it out without written permission from the bank.
Conversion: Do you still want to rent it out? Then you often have to refinance your current mortgage to a specific buy-to-let mortgage. The interest rate will increase slightly, because the bank charges a risk surcharge for rental properties.
Banks do not only look at your personal salary, but also at the object you are buying.
Future rent: A large part of the (appraised) rental income may be added to your income to calculate your borrowing capacity.
Vacancy risk: The bank often does not calculate with the full 100% of the rent, but takes a safety margin (for example 70% or 80% of the rent) to cover costs and potential vacancy.
Return requirement: In most cases, the rental income must be high enough to largely cover the monthly mortgage costs of the property.