Rental coverage
The expected monthly rent must normally meet the lender’s interest coverage calculation, using its chosen stress rate and tax assumptions.
Property finance for landlords
Explore purchase and remortgage options for rental property. We can review deposit, expected rent, property type, landlord experience and personal-name or limited-company borrowing.
A lender view of the investment
Buy-to-let lenders commonly assess the expected rental income against a stressed mortgage payment. They may also consider your personal income, deposit, landlord experience, credit history, property type and whether the mortgage is in your own name or through a special-purpose limited company.
The lowest rate is not always the lowest-cost option. Product fees can be substantial and may be charged as a percentage of the loan, so the total cost and intended holding period should be considered.
The expected monthly rent must normally meet the lender’s interest coverage calculation, using its chosen stress rate and tax assumptions.
Buy-to-let purchases generally require a larger deposit than residential purchases. The exact requirement depends on lender, property and applicant profile.
The appropriate ownership structure can affect lender choice, pricing and tax treatment. Mortgage advice should sit alongside independent tax and legal advice.
HMOs, multi-unit blocks, holiday lets, flats above commercial premises and specialist tenancies can require specific lender criteria.
Make an informed comparison
Your intended investment strategy affects the mortgage structure, lender and product that may be suitable.
Existing landlords may refinance to secure a new deal, release equity or change ownership structure, subject to legal, tax and lender requirements.
Many buy-to-let mortgages are interest-only, leaving the capital outstanding. Repayment mortgages reduce the balance but require higher monthly payments.
A fixed rate offers payment certainty, while variable products may offer different flexibility. Stress testing and early repayment charges should be considered.
Landlords with several mortgaged properties may face a portfolio assessment covering the wider property schedule, rents, balances and business plan.
The advice process
We gather the relevant facts, compare suitable routes and explain the costs and risks before you decide whether to proceed.
We discuss the purchase price or property value, expected rent, deposit, property type and your longer-term plans.
We consider landlord experience, personal income, credit profile and whether the application is personal or limited company.
We assess rental coverage, loan-to-value and relevant lender criteria before comparing suitable products.
We help coordinate the application, valuation, documents and lender queries through to mortgage offer.
Use the enquiry page and select the option closest to your plans. An adviser can clarify the route after reviewing the initial details.
Useful next steps
Common questions
The deposit required varies by lender, property and applicant. Buy-to-let mortgages commonly need more equity than residential mortgages, with pricing and criteria changing at different loan-to-value levels.
Many lenders compare expected rent with a stressed interest payment using an interest coverage ratio. Some also require a minimum personal income or complete a wider personal affordability assessment.
Yes, although lender choice can be narrower and some lenders have additional requirements, especially where you do not already own your own residential property.
That decision depends on tax, ownership, future plans, costs and lender availability. A mortgage adviser can explain borrowing options, but independent tax and legal advice should be obtained before choosing the structure.
Potentially. The amount depends on the property value, mortgage balance, rent, loan-to-value, purpose of funds and lender criteria.
Most business buy-to-let mortgages are not regulated in the same way as residential mortgages. Some consumer buy-to-let cases fall within a different regulatory framework, depending on the circumstances.
Complete the short enquiry so the team can understand what you are looking to achieve and direct you to an adviser experienced in that area.
Your property may be repossessed if you do not keep up repayments on a mortgage secured against it. The Financial Conduct Authority does not regulate most buy-to-let mortgages. Tax treatment depends on individual circumstances and may change.