Rates, criteria, stress testing, limited company BTL and portfolio landlord rules — everything UK landlords need to know.
Buy-to-let mortgages are assessed differently from residential mortgages. Lenders focus primarily on the rental income the property will generate rather than your personal income, although personal income still plays a role in affordability assessments.
Lenders typically require the monthly rent to cover 125-145% of the mortgage payment at a stressed interest rate (usually 5-6%). This protects you and the lender if rates rise.
Most buy-to-let mortgages require a 25% deposit minimum. Some lenders offer 20% for the right borrower but rates are higher.
Purchasing through a limited company keeps mortgage interest fully deductible against corporation tax, avoiding the Section 24 restrictions on individual landlords. More lenders now offer this.
Landlords with 4 or more mortgaged properties are classified as portfolio landlords. Lenders assess the entire portfolio, not just the property being mortgaged — more documentation required.
Fixed rates give certainty but tracker rates can be cheaper if rates fall. The spread between them has narrowed significantly in 2026. Your broker can model both scenarios.
Review your BTL mortgage every 2-3 years or when your current deal expires. Significant savings can be made by switching to a more competitive product.
We can refer you to a specialist buy-to-let mortgage broker with whole-of-market access including exclusive rates not available direct. Portfolio landlords and limited company purchases welcome.
Enquire about BTL mortgagesMost lenders require a minimum personal income of £25,000 alongside rental income. Some specialist lenders will consider rental income only for experienced landlords.
No — buy-to-let mortgages prohibit the owner from living in the property. You would need to remortgage to a residential product first.
For higher rate taxpayers it often is, because Section 24 restricts mortgage interest relief for individuals. However, extracting profits from a company via dividends has its own tax implications. Take specialist advice for your situation.
Usually 25%, although some lenders offer 20% with higher rates. HMO and multi-unit properties typically require 30-35%.
Tenancy agreement, inventory, guarantor agreement — all 12 landlord documents from £9.
Browse document store