If you are looking to buy a new build to add to your property portfolio, you’ve come to the right place.
In this guide, we’ll cover everything from new build buy to let mortgages to why Avant Homes are the ideal choice to buy to rent out!
If you aren’t a cash buyer, meaning you’ll need a loan to help fund your next investment, you will need to apply for a buy to let mortgage.
Slightly different from your traditional mortgage, a buy to let mortgage is specifically designed for people looking to purchase an investment home, which will then be rented out.
The rates you get will also differ slightly depending on whether you are a first time investor or a seasoned landlord, as most lenders will generally give preferable rates to people with experience.
However, don’t let that put you off, as there will always be the right product for your needs, and our new build specialist mortgage advisors are here to support you every step of the way.
The main advantage of choosing a new build for your buy to let investment is these will often have a better EPC rating since they are built to current building regulations.
This means that lenders offer bespoke products tailored to the new build market with enhanced rates and greater affordability. With the UK committed to reaching net zero by 2050, picking an energy efficient home could be more important than ever, not only now but also in the future.
Wondering how much of a deposit you’ll need for a buy to let mortgage? It’s a bit more than you might expect.
While most traditional deposits tend to be around the 10% mark, buy to let mortgage deposits tend to be closer to 20-25% (and sometimes even more).
One of the main reasons for this is lenders tend to see buy to let (or BTL) loans as riskier since the person taking out the loan isn’t the person living in the property. This means they are treated more like commercial loans.
A lot is taken into consideration, such as potential periods of time when the landlord might not have a tenant in the property and the fact that investors/landlords (historically) default more on their payments.
There are also more rigorous stress tests, as buy-to-let mortgages are assessed on the projected rental income, which normally needs to cover 125-145% of the mortgage repayment.
There are several reasons why an Avant new build home is the perfect choice for your next buy to let investment.
Firstly, our homes are all built in areas with access to great travel links and amenities, meaning your rental home will be in a sought-after location.
Secondly, our homes are brand new! This means there will be no hassle in getting the property ready to be rented out. A new build home also doesn't require any refurbishing, as any boilers, electricals and appliances will also be new and unused.
Finally, you’ll also benefit from a 10-year warranty with a new build Avant home. This is because every Avant home comes with a 2-year Avant warranty and a further 8 years of cover from one of our warranty providers, either the NHBC or Premier Guarantee.
Not only are our new build buy to let homes designed for modern living, meaning they’ll appeal to a wide range of tenants looking for a place to rent, but they also have the bonus of being energy efficient.
This will mean lower bills for your tenants, making an Avant home an attractive place to rent and potentially allowing you to command a higher monthly rental yield due to tenant demand for new, energy efficient homes.
All Avant new build homes come with an Energy Performance Certificate (EPC) and are all rated B or above. By comparison, older homes are more likely to have a lower rating, meaning they have more issues with ventilation, insulation and heating systems, upping maintenance costs for tenants.
For example, renting a property with an A or B rating could typically save tenants 20% on their energy bills compared to a property rated D, and this can increase to a staggering 58% if the property has an EPC rating of G.
Therefore, with better insulation and modern construction types, keeping the heat in could save tenants hundreds of pounds!
Investing in a new build buy to let Avant home will not only benefit your tenants’ pockets, but also yours!
Banks and building societies are trying to do their bit as well by incentivising you to go green. They do so by offering exclusive rates when buying a property with an EPC rating of A, B or C. This includes discounted rates of 0.1% or 0.2% on many fixed rate deals, which is money definitely better off in your back pocket!
These deals are also available when you’re looking to remortgage, meaning you could benefit from the reduced rates for the lifetime of your investment. This all adds up to a safe investment with an improved rental yield.
Not only could you benefit from cheaper monthly payments, but a handful of lenders are also offering greater affordability on a property with a high EPC rating. This could mean you could reduce the deposit you're looking to put down and increase the size of your portfolio.
When buying your new build buy to let home, it’s easy to get wrapped up in the here and now, but it’s important to have one eye on the future. This is something that buy to let mortgage providers are acutely aware of.
Official figures from the ONS show the average UK house price rose from £167,000 in January 2013 to £268,000 at the end of January 2026, an increase of just over 60%. A contributing factor behind this rise has been the increased demand for energy efficient properties.
Property values and rents are driven by demand, so when demand is high, you can expect higher value, better yields and stronger returns on your investment.
Another benefit of choosing Avant for your buy to let property is the speed of completion!
Buying directly from Avant Homes means you won’t have any upward chain to contend with. We also have a selection of homes which are ready now, speeding the whole buying process up significantly.
Furthermore, there’s also security and certainty when buying a new build home for your buy to let investment, as there’s no risk of buyers pulling out.
Add to that our reservation fee and membership with the New Homes Quality Code, and you are guaranteed to experience both protection and excellent customer service.
Ultimately, whether it’s better rates, greater rental yield or the peace of mind that your property is safe from future changes in the market, there’s never been a better time to choose a new build for your next buy to let investment!
How much you can borrow is largely based on your expected rental valuation, with most mortgage lenders requiring your expected rental income to cover 125%-145% of the interest only mortgage payments.
However, some may also require you to earn around £25k/year to grant you a mortgage. our Sales Advisors about expected rental figures.
Most buy to let mortgages require a 25% deposit, with more experienced landlords potentially being able to reduce their deposit to 20%.
The best way of deciding how much to rent your buy to let home out for is by doing market research and seeing what similar homes in the area are being rented out at price wise.
Our Sales Advisors can help you with this! Your lender will also do their own checks and give you a recommended rental price based on what the home is worth.
Yes, you will need to pay Stamp Duty (or LBTT in Scotland) on a buy to let property. This will be a higher rate due to it being a ‘second property’.
It is possible to rent your buy to let home to a family member, but this should be disclosed to your mortgage lender as many lenders have regulations on renting to family.
Some lenders offer a special mortgage for people who want to rent out their home to a family member. This is usually called a Family Buy to Let mortgage. This mortgage type allows you to charge family members a reduced rental cost, but you will likely need a bigger deposit as the affordability testing is much stricter.
