FCA Regulated
Whole of market
Up to 85% LTV
Personal & Ltd Co
How buy to let mortgages work
A buy to let mortgage is designed for properties you plan to rent out rather than live in. The lender assesses the deal primarily on the expected rental income rather than your salary, although your personal income still matters for affordability checks.
Most BTL mortgages are interest-only, meaning your monthly payments only cover the interest. The capital is repaid when you sell the property or remortgage. Deposit requirements are typically 25%, though some lenders will go as low as 15% for the right applicant.
What we arrange
Rates and costs
Buy to let rates are slightly higher than residential mortgages. As a general guide:
- Fixed rates from around 4.5% for 2-year and 5-year terms
- Arrangement fees of typically 1% to 2% of the loan
- Rental income usually needs to cover 125% to 145% of the mortgage payment
- Most deals are interest-only, keeping monthly costs manageable
Common questions
Do I need a minimum income?
Most lenders require a minimum personal income of around GBP 25,000 per year, though some specialist lenders have no minimum. The key test is whether the rental income covers the mortgage payment by enough of a margin.
Can I live in the property?
No. A buy to let mortgage is strictly for properties rented to tenants. If you want to live in the property at any point, you would need consent from your lender or a different mortgage product.
What about stamp duty?
Buy to let purchases attract the standard stamp duty rates plus a 5% surcharge (as of April 2025). This applies to both individuals and limited companies purchasing additional residential property.
Can I buy through a company?
Yes. Many landlords now purchase through a limited company for tax efficiency. We arrange Ltd Co BTL mortgages and can explain the practical differences. See our dedicated Ltd Company BTL page for more detail.