What is a buy-to-let mortgage?
A buy-to-let mortgage is a loan on a property you rent out rather than live in. Because your tenant pays the rent that covers the mortgage, lenders judge the property mainly on the rent it can generate — not just your personal income — which is why the rates, deposits and rules differ from a residential mortgage.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.
How do buy-to-let mortgages work?
The moving parts are these:
- Deposit — most lenders ask for at least 25% of the property's value.
- Rental coverage — the rent usually needs to comfortably exceed the mortgage payment; each lender has its own formula, often 125–145% of the payment and stress-tested at higher rates.
- Your income still matters — most lenders want to see personal income alongside the rental sums.
- Ownership structure — some landlords hold property through a limited company. The mortgage rules and tax treatment differ, so it's worth getting advice before you decide.
Thinking about your first rental?
Start with the numbers, not the property listing. Look at realistic rent for the area, then subtract the mortgage, letting and management fees, maintenance, insurance and the weeks it might sit empty between tenants. What's left is your real return — and it's much better to know that before you offer than after.
When you've found a property, we'll check it against lenders' rental requirements before you commit, so there are no surprises at application stage.
Already a landlord, growing a portfolio?
As portfolios grow, so does the juggling: different deal end dates, different lenders, different criteria. We can remortgage existing properties to release equity for the next purchase, consolidate where it makes sense, and keep the whole portfolio working together rather than property by property.
Other costs to keep in mind
Buying a second property usually means a higher stamp duty bill than your first home, and rental income is taxed in its own way. We're mortgage specialists rather than tax advisers, so for the tax side we'll always recommend you speak to an accountant — but we'll make sure the mortgage itself fits around the whole picture.
Common questions
How much deposit do I need for a buy-to-let mortgage?
Typically at least 25% of the property's value, with better rates often available at 35–40%. Rental coverage requirements also shape how much you can borrow.
What is rental coverage?
It's the lender's test that the rent covers the mortgage — usually the rent needs to be a set percentage (often 125–145%) of the mortgage payment, sometimes calculated at a higher 'stress' rate. We'll check the sums before you commit to a property.
Can first-time buyers get a buy-to-let mortgage?
Some lenders will consider first-time buyers for buy-to-let, but the choice is more limited and the criteria stricter. It's usually easier to buy your first home first — then we can help you build from there.