A buy to let mortgage is a loan for a property you plan to rent out rather than live in. The big difference is how the lender works out what you can borrow. With your own home it's mainly about your salary. With buy to let, the lender looks first at the expected rental income and checks it comfortably covers the mortgage interest, usually by 125% to 145% at a stressed interest rate. Most lenders also want some personal income, often around £20,000 to £25,000 a year, and you'll normally need a deposit of at least 25%. Rates tend to be a little higher than residential rates, and lots of landlords choose interest only so the monthly repayments stay low while the rent covers the bills.
Our buy to let advice is fee free for most landlords. There is a £299 fee on mortgages under £100,000, payable on offer, and complex or adverse credit cases can carry a fee depending on the circumstances, up to a maximum of £995. We will always tell you before we start.
You can go straight to a bank for a buy to let mortgage, and plenty of landlords do. The catch is that you only see that one lender's products and that one lender's rules. Lending criteria varies far more on buy to let than on residential mortgages, so a case one bank turns down can sail through with a mortgage lender that looks at things differently. As a whole of market buy to let mortgage broker, our job is to know those differences and put your case in front of the right lender first time.
We compare buy to let mortgage products from high street banks, building societies and specialist lenders, including some that only work through brokers. That gives you a far better chance of the best deal for your circumstances, not just the best deal one bank happens to have.
Most declined buy to let applications fail on the rent. We know which lenders use lower stress rates on five year fixes, which allow top slicing from your personal income, and which set a kinder interest cover ratio for basic rate taxpayers.
Some lenders offer exclusive deals that are only available through a broker, and specialist mortgages for HMOs, holiday lets, ex local authority flats or flats above shops rarely appear on comparison sites. If your plan is a little unusual, that matters.
Buying in your personal name or through a limited company changes the lenders, the rates and the tax you pay. We'll show you how each route affects the mortgage, and point you to a property accountant for the tax side before you commit.
From the agreement in principle to the mortgage offer, we package the application, sort the valuation, answer the underwriter's questions and keep your solicitor and the estate agent updated. You get on with finding the right rental property.
The lender pays us when your mortgage completes, so most landlords pay us nothing at all. Where a fee does apply, like a loan under £100,000 or a complex adverse credit case, we tell you before we start, never after.
Thinking about your first rental, or your next property purchase? Have a no obligation chat with a mortgage expert.
Call 03300 432 428Put in a rough purchase price, your deposit and the expected rental income, then choose how you'll own the property. The calculator applies the interest cover ratio most lenders would use and shows the rent you'd need, the amount you can borrow based on that rent, and rough monthly repayments.
For illustration only and not financial advice. Every lender has its own stress rate, cover ratio and lending criteria, so the amount you can borrow will vary. Your property may be repossessed if you do not keep up repayments on your mortgage.
With buy to let, the amount you can borrow is driven mainly by the rent, not your salary. Here's how most lenders work it out, and where the right broker can change the numbers.
Lenders want the expected rental income to cover the mortgage interest by a certain percentage. That's usually 125% for basic rate taxpayers and limited companies, and 145% for higher rate taxpayers, because the tax bill on the rent is bigger in a higher tax bracket.
The interest isn't worked out at your actual rate. On shorter fixes most lenders use a stress rate of at least 5.5%, or your pay rate plus 2%. Fixes of five years or more can usually be tested at the pay rate itself, which is why so many landlords fix for longer.
If the rent falls a little short, some lenders let you use spare personal income to make up the difference. This is called top slicing. Not every lender offers it and the rules vary a lot, so it's an area where knowing the market really pays.
Most lenders want at least a 25% deposit, a maximum loan to value of 75%. A few go to 80% or 85%, at higher rates. A bigger deposit opens up better mortgage rates and makes the rental calculation much easier to pass.
Many lenders ask for a minimum personal income of around £20,000 to £25,000, while some have no minimum income for experienced landlords. A good credit history helps, but there are specialist lenders for past missed payments or defaults.
Lenders care about the property's value and how easily it would let. Standard houses and flats are simple. Flats above shops, ex local authority blocks, non standard construction and houses in multiple occupation come with strict criteria and fewer lenders.
Say the property would let for £1,200 a month. A basic rate taxpayer passes comfortably. A higher rate taxpayer falls about £46 a month short, so the options are a bigger deposit (around £69,500 would do it), a lender that allows top slicing, a five year fixed rate tested at a lower rate, or buying through a limited company. This is exactly the kind of puzzle we sort out for landlords every week.
There's no legal limit on how many buy to let mortgages you can have. Once you own four or more mortgaged rental properties, though, lenders class you as a portfolio landlord. That means they look at your whole portfolio on every new application, not just the property you're buying: total borrowing, the rent across every property, your cash flow and your plans. Some lenders also cap how many properties, or how much total borrowing, they'll have with one landlord. Getting the portfolio paperwork right before you apply makes a big difference, and it's something we help with all the time.
Most people who own their own home and have a decent deposit can get a buy to let mortgage, but every lender has its own view on first time landlords, first time buyers and more complicated income. Here's where you might fit.
Plenty of lenders welcome first time landlords, as long as you own your own home, have a sensible deposit and the rent passes the stress test. Some want you to have owned your home for six or twelve months first.
Buying a rental before you've owned your own home is possible, but fewer lenders will do it and the criteria are stricter. We explain it all in our first time buyer buy to let guide.
Moving home but want to keep your current property and rent it out? That's let to buy, and we arrange both mortgages together. See our let to buy mortgage guide.
Whether it's your second rental or your twentieth, lenders want to see a track record, sensible borrowing across the portfolio and rent that covers the mortgages. Experienced landlords often get access to more lenders and better terms.
Being self employed is rarely a problem, because the rent does most of the work. Lenders still check your personal income, usually from your latest tax calculations. More on this in our self employed mortgages guide.
Many lenders have a maximum age at the end of the mortgage term, often between 75 and 85, and some have no upper age limit on buy to let because the rent pays the mortgage. Retired landlords with pension income are often fine too.
The deposit is the big number, but it's far from the only one. Before you commit, add up every cost so you know the real rental yield you're working with, and remember that buy to let is a long term investment. Property values can fall as well as rise, and there may be months with no tenant.
In England and Northern Ireland, buying an additional property means paying a 5% surcharge on top of the normal stamp duty rates. On a £250,000 buy to let that comes to £15,000 in total. Scotland and Wales have their own taxes. Check the current stamp duty rates on GOV.UK.
Budget for conveyancing legal fees, searches, a valuation or survey and the lender's arrangement fee. Some products have higher fees with lower rates, or the other way round, so we compare the true cost over the fixed period, not just the headline rate.
You'll need landlord insurance rather than normal home insurance, plus gas and electrical safety checks, an EPC, repairs and the odd empty month between tenancy agreements. A letting agent offering full management typically charges around 10% to 15% of the rent.
If you own in your personal name, rental profit is taxed as income. Mortgage interest isn't deducted from the rent any more. Instead you get a tax credit at the basic rate. From April 2027 the government plans property income tax rates of 22%, 42% and 47%, with that credit rising to 22%. Limited companies pay corporation tax instead.
The main Renters' Rights Act changes started on 1 May 2026. Section 21 no fault evictions have ended, tenancies are periodic and rent can only go up once a year. None of this stops you getting a mortgage, but build it into your plans. Read the government guide to the Renters' Rights Act.
We look after the mortgage, but tax is a separate specialism. It's well worth consulting an accountant who knows property before you decide between personal name and limited company. We're happy to work alongside yours. For more detail, read our buy to let legal and tax guide.
Tax rules depend on your individual circumstances and can change. We do not give tax advice. Your property may be repossessed if you do not keep up repayments on your mortgage.
We keep it simple. Most landlords speak to us two or three times and leave the rest to us, whether it's a single property or the next one in a growing portfolio.
We talk through the property, the expected rent, your deposit, your personal circumstances and whether you're buying in your own name or a limited company. No cost and no obligation.
We compare rates, fees and criteria from high street and specialist lenders, then recommend the right mortgage and explain why, including the monthly repayments and the total cost over the fixed period.
We get you an agreement in principle so you can make offers with confidence, often the same day. Read more about our agreement in principle service.
Once your offer is accepted we submit the full application, book the valuation and deal with the underwriter's questions, so you're never left chasing anyone.
When the mortgage offer is issued we stay in touch with your solicitor right up to completion, and we'll be back in touch before your fixed period ends to review the market again.
You deal with a qualified adviser from our Romsey office the whole way through, not a call centre. If something changes, you can pick up the phone and talk to the person who knows your case.
Ready to see what you could borrow? We'll give you a straight answer, usually within a day.
Book a free callEvery part of buying a rental property, explained in plain English. Pick the guide that fits where you are right now. Already a landlord? Read our buy to let remortgage guide to switching deals, cutting monthly payments and releasing equity.
Fixed rates, trackers, interest only and repayment, and how to compare products on the true cost rather than the headline rate.
How much deposit you need, stamp duty on a second property, legal fees and every other cost to budget for before you buy.
Landlord tax, Section 24, personal name versus limited company, and the legal rules every landlord needs to follow.
Four or more mortgaged properties? How lenders assess a portfolio, what paperwork they want and how to keep growing.
Keep your current home as a rental and buy your next one. How the two mortgages work together and what lenders look for.
Buying a rental before you've owned your own home. Which lenders will consider it and what they need to see.
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If you want to rent out the home you live in now, you'll need either your lender's consent to let, which is often granted for a limited period, or a buy to let remortgage. Letting a property on a normal mortgage without permission can breach your mortgage terms.
Most landlords choose interest only, because the monthly payments are lower and the loan is usually repaid when the property is sold. You can also have a repayment mortgage or a mix of both. We'll talk through which suits your long term plans.
Usually, yes. Lenders see buy to let as higher risk than a home you live in, so mortgage interest rates tend to be a little higher at the same loan to value. Rates move with the Bank of England base rate and lender pricing, so we check the whole market when you're ready to apply.
Yes, but you need a holiday let mortgage specifically designed for short term lets rather than a standard buy to let. Lenders assess the expected holiday income, often using a letting agent's projection, and many want a bigger deposit.
From application to mortgage offer usually takes two to four weeks, depending on the lender and the valuation. Limited company and HMO cases can take a little longer, because there's more for the underwriter to check.
Most buy to let mortgages aren't regulated by the Financial Conduct Authority, because they're treated as business lending. If you or a close family member will live in the property, it may be a regulated consumer buy to let. We're FCA authorised either way and give every case the same care.
Jamie founded Alexander Southwell Mortgage Services in 2019 and has 15 years' experience in mortgages, including buy to let, limited company and portfolio lending. He advises landlords across the UK from our office in Romsey, Hampshire, and comments on the mortgage market in the national press. Alexander Southwell Mortgage Services is authorised and regulated by the Financial Conduct Authority, FCA number 1011890. Page last reviewed October 2026. Meet the team or read our client reviews.
Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy to let mortgages are not regulated by the Financial Conduct Authority.
