Buy-to-let mortgages, from single properties to portfolios

A buy-to-let mortgage is a loan specifically designed for purchasing or refinancing a property you intend to rent out to tenants. Affordability is based primarily on rental income rather than personal salary, and the criteria differ significantly from standard residential mortgages.

Most buy-to-let mortgages require a minimum 25% deposit (75% LTV). A 30 to 40% deposit unlocks significantly better rates and more lender options. For limited company mortgages or specialist properties, HMOs, MUFBs, you typically need at least 30 to 40%.

Yes. Many lenders offer buy-to-let mortgages to first-time landlords. You typically need to own your own home first and meet minimum income requirements (usually £25,000 to £40,000). We specialise in helping first-time landlords secure competitive rates with the right lender.

Buy-to-let affordability is based on rental income. Lenders typically require the monthly rent to cover 125 to 145% of the mortgage payment at a stressed interest rate of 5.5 to 7%. Your personal income is still considered but is less important than for residential mortgages.

A portfolio landlord owns 4 or more mortgaged buy-to-let properties. Under PRA rules, lenders must assess your entire portfolio, not just individual properties, meaning more detailed financial scrutiny, stress testing across all holdings, and specialist lenders are required. We work with lenders who handle portfolio landlords regularly.

Limited company structures offer better tax efficiency for higher-rate taxpayers, full mortgage interest deductible as a business expense, corporation tax rather than income tax at up to 45%. However, limited company mortgages typically require larger deposits and carry slightly higher rates. We provide personalised advice based on your situation and recommend working with a specialist landlord accountant.

Buy-to-let landlords pay income tax on rental profits (after allowable expenses), capital gains tax when selling (with allowances), and a 5% stamp duty surcharge on additional properties. Limited companies pay corporation tax instead. Tax rules are complex, we strongly recommend consulting a specialist landlord accountant.

If you're moving out and want to rent your current home, you must inform your lender and typically switch to a buy-to-let mortgage. A 'Consent to Let' from your existing lender may be available for temporary letting. We handle switches from residential to buy-to-let mortgages.

Gross rental yields typically range from 4 to 8% for standard buy-to-let, and 8 to 12% for HMOs. However, net yield after all costs is more important than gross yield. We help you calculate realistic net yields for specific investment properties, including all costs and void period assumptions.

Short-term lets including Airbnb require different mortgages. You'll need either a holiday let mortgage or specific lender permission. Standard buy-to-let mortgages typically don't allow Airbnb-style letting. We arrange holiday let mortgages for suitable properties.

Typically 4 to 8 weeks from application to completion, depending on the lender, valuation, and legal process. Portfolio landlord and limited company applications may take slightly longer due to more detailed underwriting requirements.