Buy to Let Mortgages for Every Kind of Landlord
From your first rental property to a growing portfolio, we find buy to let mortgages that work for your investment, and help you think through structure and tax with the benefit of in-house accountancy knowledge.
Lending Based on Rent, Not Just Salary
A buy to let mortgage is designed for property you intend to rent out. Unlike a residential mortgage, the amount you can borrow is mainly determined by the expected rental income rather than your personal earnings.
Lenders apply an interest cover ratio, or rental stress test, to check that the rent comfortably exceeds the mortgage interest at a notional rate. Typical ratios range from around 125% to 145%, depending on the lender, the product and whether you are a basic or higher-rate taxpayer. Some lenders allow you to top up a shortfall with personal income.
Most buy to let lenders require a deposit of at least 25%, and many landlords choose interest only repayments to maximise monthly cash flow, with the plan to repay the loan from the eventual sale of the property.
First-Time, Accidental and Portfolio Landlords
First-Time Landlords
Accidental Landlords
Portfolio Landlords
Specialist Property Types
Structure Matters, and So Does Tax
Since mortgage interest relief for individual landlords was restricted, many investors have looked at buying through a limited company. Companies can generally offset mortgage interest as a business cost, which can benefit higher-rate taxpayers. However, there are trade-offs, including different mortgage products, extraction of profits, and costs if you transfer existing properties.
This is one of the clearest examples of where our link with Futurewise Accountancy adds value. Our colleagues can provide tax advice on the right structure for you, while we arrange the finance that fits it. Joined-up advice means fewer expensive surprises.
Please note: Futurewise Finance does not give tax advice. Tax advice is provided separately by Futurewise Accountancy or your own accountant.
Keep Your Portfolio Working Hard
When a fixed rate ends, many landlords drift onto the lender’s standard variable rate without realising it. That can wipe out a significant share of your rental profit. We review your rental mortgages well before deals expire, compare product transfers with the wider market, and look at whether releasing equity could fund your next purchase or improvements to existing properties.
For landlords with several properties, we can carry out a full portfolio review: checking when each deal ends, how each property performs against current stress tests, and where refinancing could improve cash flow. Bringing deals onto a sensible timetable makes your portfolio easier to manage, and gives you a clear view of how much you could borrow for your next investment.
Frequently Asked Questions
How much deposit do I need for buy to let?
Usually at least 25% of the purchase price, although some lenders offer 20% deposit products, and better rates are often available at 40% or more.
Can I get a buy to let mortgage with no other income?
Some lenders require a minimum personal income, while others rely mainly on rental income. Criteria vary, so it pays to get advice before applying.
Are buy to let mortgages regulated?
Most are not regulated by the FCA, because they are business lending. Consumer buy to let, such as letting a former home or an inherited property, can be regulated.
Explore more of what we offer
High Value & High Net Worth Mortgages
Remortgages
Homeowner Mortgages
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