How buy-to-let mortgages work
Buy-to-let mortgages are designed for property that will be rented to tenants. Most are assessed using expected rental income and an interest-coverage calculation, alongside the applicant, property and deposit.
How much deposit is needed?
Buy-to-let deposits are generally larger than residential deposits. The exact requirement depends on the property, rental calculation, applicant, product and whether the case is personal or limited-company borrowing.
Personal name or limited company?
The choice can affect tax, costs, lender availability and future plans. Mortgage advice can explain the lending differences, but tax and legal advice should be obtained before deciding on ownership structure.
What lenders may assess
A portfolio or specialist property can require more information than a straightforward single let.
- Expected monthly rent
- Property value and type
- Applicant income and credit profile
- Existing portfolio and background properties
- Experience as a landlord
- Tenancy type and intended occupants
Frequently asked questions
Can a first-time buyer get a buy-to-let mortgage?+
Some lenders may consider it, though choices can be more limited and the application will still be tested against buy-to-let and personal affordability criteria.
Can I buy through a limited company?+
Yes, subject to specialist lender criteria. Obtain tax and legal advice before choosing the ownership structure.
Are buy-to-let mortgages regulated?+
Most business buy-to-let mortgages are not regulated by the FCA, although some consumer buy-to-let cases fall within a regulatory framework.