Near you, no matter where you are.
Appointed Representative of The Right Mortgage Network (FCA No. 1004260). Company No. 15189091. Registered in England and Wales.
Mortgages · Investment and borrowing
Buy to Let Mortgages
“Property investment done properly.”
A buy to let mortgage is designed for property you’re buying to rent out. The lending criteria are different from residential mortgages, and getting the right deal matters more than ever.
FCA regulated · whole of market · 90+ lenders · 5 star reviews
Quick answer
A buy to let mortgage is for a property you intend to rent out. Lenders mainly assess the expected rent rather than your salary, usually wanting it to cover 125% to 145% of the interest at a stressed rate. Most need a deposit of at least 25%. The main thing to know is that tax and stamp duty rules make the numbers very different from buying a home.
Typical deposit
25% or more
How lenders assess you
Expected rent against a stressed rate
When to start
Before you make an offer
Main thing to watch
Rental cover and tax
How rental income affects what you can borrow
Lenders use an interest cover ratio: the expected monthly rent must exceed the monthly interest, calculated at a stressed rate, by a set margin, often 125% to 145%.
Higher rate taxpayers usually face the higher ratio, because Section 24 limits the tax relief on mortgage interest for individual landlords.
Most landlords choose interest only to keep payments low, but you’ll need a clear plan to repay the loan at the end of the term.
Property types lenders accept
Standard houses and flats are straightforward. Houses in multiple occupation, multi unit blocks, holiday lets and ex local authority flats all have their own lender rules.
Some lenders want you to be an existing homeowner or have landlord experience. We know who is flexible on first time landlords.
Eligibility and what lenders assess
Who may qualify
Buyers of a property to let, usually with a minimum income around £25,000 for many lenders.
Deposit and LTV
Usually 25%, with some lenders at 20%.
Rental income
Must meet the lender’s cover ratio at a stressed rate.
Credit history
Clean recent history opens up the mainstream lenders.
Property requirements
Type, condition and lettability all matter.
Common reasons for decline
Rent that falls short of the cover ratio, or a property type the lender avoids.
What happens from first call to completion
1
Review your circumstances
A proper conversation about your income, commitments, plans and timescales before anything else.
2
Check affordability and criteria
We check what lenders will realistically offer and whose criteria you fit, before any credit search.
3
Compare suitable options
We compare the market on total cost, not just the headline rate, and explain the trade offs.
4
Prepare and submit the application
We package your documents so the underwriter has what they need first time.
5
Manage valuation and underwriting
We chase the lender, valuer and solicitor and deal with any questions that come up.
6
Receive your offer and complete
Once the offer is issued we keep things moving through to completion day.
Costs, risks and when it may not be suitable
Being upfront about this is part of doing it properly.
Costs to budget for
- Product and arrangement fees
- Valuation and legal costs
- Early repayment charges if you leave a deal early
- The total cost of borrowing over the full term, not just the initial rate
- A longer term lowers monthly payments but increases the total interest you pay
Risks to weigh up
- Void periods and arrears still leave you paying the mortgage
- A higher rate of stamp duty applies to additional properties
- Interest only leaves the full loan to repay
- Your home may be repossessed if you do not keep up repayments on your mortgage
When it may not be suitable
- If the rent only just covers the stress test, a rate rise could wipe out your profit
- If you’re a higher rate taxpayer, a limited company may be more efficient
What you will need
The exact list depends on your lender, but this is what to start gathering.
Photo ID and proof of address
Bank statements (usually 3 months)
Details of credit commitments
Rental assessment or tenancy agreement
Payslips or accounts
Existing mortgage statements
Landlord portfolio schedule if relevant
How MBNM helps
- Assess your circumstances properly, not just your salary
- Compare suitable lenders and products across the whole market
- Check criteria before an application goes anywhere near a lender
- Explain the total costs and trade offs in plain English
- Manage the application and chase the people who need chasing
- Support you all the way through to completion
What it costs
Your first chat is free. If we can help, we will explain any fees before you decide whether to proceed. There are no hidden fees, and we will not move forward until you have agreed them.
Buy to Let Mortgage FAQs
Can I let a property I already own?
How is affordability assessed?
Personal or limited company?
Can I be a first time landlord?
Do I pay more stamp duty?
Is interest only allowed?
Looking at a buy to let?
Share the property and expected rent and we’ll check the numbers against lender criteria before you offer.
Your first conversation is free and there's no obligation. If we can help, we'll explain any fees before you decide whether to go ahead.
Your home may be repossessed if you do not keep up repayments on your mortgage.