Buy-to-Let Mortgage Advice Made Simple
Whether you’re purchasing your first rental or growing a property portfolio, we help landlords secure the right buy-to-let mortgage with expert advice and access to exclusive deals
What is a Buy-to-Let mortgage?
A buy-to-let (BTL) mortgage is for people who want to purchase a property to rent out, rather than living in it themselves. Whether you’re building a property portfolio or just letting out your first home, these mortgages are different from standard residential ones.
Unlike residential mortgages, lenders assess the potential rental income to decide how much you can borrow – not just your personal income. A buy-to-let mortgage broker can help you explore your options quickly and easily.
Who can get a buy-to-let mortgage?
Buy-to-let mortgages aren’t exclusively for experienced landlords or those with high incomes. In reality, with the right advice and a proper setup, almost anyone can become a landlord. Even first-time buyers or those with a lower income.
Lenders assess landlord mortgage applications differently to residential ones. The expected rental income is usually the key factor. If your numbers stack up, your options may be broader than you think.
Whether you’re employed, self-employed, or even just starting out, we can help match you with a buy-to-let mortgage lender that suits your situation.
In short: If the property has strong rental potential and you’ve got a suitable deposit, there’s likely a deal out there for you
Should I use a limited company for buy-to-let Mortgages?
When buying a rental property, some landlords consider using a limited company (also knows as an SPV – Special purpose vehicle) instead of buying in their own name. Each route comes with different costs, lender options, and potential tax implications – and the best approach depends on your circumstances.
Personal (individual) buy-to-let mortgages
Most landlords purchase property in their own name. This typically gives access to:
- A wider range of mortgage lenders and deals
- Lower interest rates compared to limited company buy-to-let
- Fewer admin and setup costs
However, rental income is usually added to your personal income, which may affect how much tax you pay – Especially if you’re a higher-rate taxpayer. (Speak to a qualified tax adviser for guidance).
Limited company buy-to-let mortgages
Some landlords set up a limited company to hold buy-to-let properties. This can offer different financial benefits, such as the ability to offset mortgage interest as a business expense, and may provide more flexibility in how profits are managed or reinvested.
That said, limited company buy-to-let mortgages often come with:
- Higher mortgage rates and fees
- Fewer lender options, although more and more lenders are now offering limited company ranges
- Extra setup and running costs
IMPORTANT: Choosing between personal or limited company buy-to-let can have tax and financial implications. We always recommend speaking with an accountant or tax adviser to get advice specific to your situation.
How Buy-to-Let Mortgages Work
Buy-to-Let (BTL) mortgages are specifically designed for properties you plan to rent out rather than live in. They work differently to residential mortgages in a few key ways.
Rental income is key
Instead of basing what you can borrow on your personal income alone, lenders look at the expected rental income from the property. Most require the rent to cover 125-145% of the monthly mortgage payment.
Larger deposits usually required
BTL mortgages generally need a bigger deposit – Often 25% although some lenders have recently started to offer 20% deposit options. The more you can put down, the better rates you’re likely to access.
Interest-only is common
Many landlords opt for interest-only mortgages. This means you only pay the interest each month and repay the full loan at the end of the term – Often by selling the property or using other investments. This keeps monthly costs lower and can improve cash flow.
Higher rates and fees
BTL products usually come with slightly higher interest rates and arrangement fees compares to standard residential mortgages, as lenders view them as higher risk.
Eligibility requirements vary
While some lenders prefer you to own your own home or have a minimum income, others are more flexible. Each lender has their own criteria, and that’s where an adviser can help you find the right fit
What you’ll need to apply for a buy-to-let mortgage
Lenders will want to see that the investment is financially viable and that you’re in a good position to manage it. Typically you’ll need to provide:
- Proof of ID and address
- Deposit funds
- Details of the property you’re buying, if you’ve already got one in mind
- Proof of your personal income, even though affordability is based on rental income
- Projected rental income, or a letting agents estimate
- Existing mortgage or property portfolio details (if you already own other properties)
We’ll walk you through exactly what’s needed and flag anything that could slow things down – so nothing holds your application back.
Is buy-to-let right for you?
Thinking about becoming a landlord? Here’s a quick look at the upsides, and a few things to keep in mind:
Why buy-to-let could work for you:
- Earn regular rental income to help cover your mortgage and build cash flow
- Potential property value growth over time can boost your investment returns
- Flexible interest-only mortgages often available to keep monthly costs manageable
- Grow your property portfolio with access to multiple buy-to-let deals
- Tax relief on some expenses (speak to a tax professional for details)
Why buy-to-let might not be a fit:
- You’re not prepared for periods without tenants, which means you still cover mortgage costs
- You don’t want the responsibility of managing maintenance and legal duties
- You’re not ready to put down a larger deposit (usually 20% or more)
- You can’t commit to the long-term investment horizon and potential tax implications
- You prefer a hands-off investment, as buy-to-let requires active management
How a buy-to-let mortgage broker can help you
Navigating the buy-to-let mortgage market can be complex, especially with varied lender criteria, interest rates, and borrowing limits. A specialist mortgage broker acts as your guide, helping you:
- Access the exclusive deals: Brokers have access to exclusive lender offers and a wider range of products than you’ll find on your own
- Simplify the application: We handle the paperwork and liaise directly with lenders, reducing delays and errors
- Tailor advice to your situation: Whether you’re a first-time landlord or expanding your portfolio, we find mortgage solutions that fit your goals
- Explain mortgage criteria: We’ll guide you through how mortgage lenders assess applications differently for personal buy-to-let versus company buy-to-let mortgages, helping you understand what to expect from each
- Save time and stress: Instead of spending hours researching and applying, you can focus on finding the right property while we do the mortgage legwork
Working with a knowledgeable broker gives you confidence and clarity, helping you make informed decisions and secure the best possible buy-to-let mortgage.
Your Buy-to-Let Mortgage Questions Answered
What is a buy-to-let mortgage?
A buy-to-let mortgage is a loan designed specifically for purchasing property that will be rented out to tenants, often requiring a larger deposit that residential mortgages.
How much deposit do I need for a buy-to-let mortgage?
Typically, buy-to-let mortgages require a deposit of at least 25%, but this can vary on the lender and your financial situation.
Can I get a buy-to-let mortgage if I’m a first time landlord?
Yes! Many lenders welcome first-time landlords even those without previous rental experience or property ownership.
What’s the difference between a personal and limited company buy-to-let mortgage?
Personal buy-to-let mortgages are in your name as an individual, while limited company mortgages are held by a company you own. Each has different lending criteria and implications.
Can I get a buy-to-let mortgage if I’m self employed?
Yes, but you’ll need to provide proof of income usually, including tax returns, to demonstrate affordability where the property may be vacant.
What interest rates are typical for buy-to-let mortgages?
Interest rates for buy-to-let mortgages are generally higher than residential mortgages, reflecting the increased risk to lenders.
What is an interest-only buy-to-let mortgage?
An interest-only mortgage means you pay just the interest each month, with the capital repayment due at the end of the term – a popular choice for many landlords.
How does rental income affect my mortgage application?
Lenders usually base the amount you can borrow on the expected rental income, often requiring it to cover 125% or more of the mortgage payments.
Are there special government schemes for buy-to-let investors?
Currently, government schemes are limited for buy-to-let investors, but there are some regional incentives and support available in certain areas where local government housing may be scarce.
What fees should I expect with a buy-to-let mortgage?
Buy-to-let mortgages often have higher arrangement fees, valuation fees, and often higher interest rates that residential mortgages.
Thinking about investing in property? let's talk
Whether you’re planning your first rental or expanding your portfolio, we’ll guide you through your buy-to-let mortgage options with expert, jargon-free advice. Get in touch today and let’s make your next investment simple.