Buy To Let

Building a portfolio or buying your first investment property. The right lender makes all the difference

A buy to let mortgage is specifically designed for properties you intend to rent out rather than live in. The way lenders assess affordability, the deposit required and the products available are all different to a standard residential mortgage. Getting the right advice from the start saves time, money and avoids costly mistakes.

Whether you're buying your first investment property or expanding an existing portfolio, I'll search the whole market to find the most suitable mortgage for your circumstances.

How affordability is assessed

Buy to let lenders assess affordability primarily on the rental income the property is expected to generate rather than your personal income. Most lenders require the expected monthly rent to cover the mortgage payment by a set margin, typically 125% to 145% depending on the lender and your tax position.

Higher rate taxpayers are stress tested at a higher rate than basic rate taxpayers because of the way mortgage interest relief is restricted. The lender, the property, your tax position and the rental income all interact — which is why lender selection matters enormously on buy to let cases.

Deposit

Most buy to let lenders require a minimum deposit of 25%. Some specialist lenders will consider 20% in the right circumstances. The larger your deposit the better the rates available to you and the more likely the rental income will cover the lender's stress test comfortably.

The Renters Rights Act 2025

The Renters Rights Act came into force on 1 May 2026 and made significant changes to the private rented sector. Assured shorthold tenancies no longer exist. All tenancies are now assured periodic tenancies with no fixed term option. Section 21 no fault evictions are abolished. Landlords must use Section 8 grounds only to end a tenancy.

These changes affect how lenders think about rental income security and void periods. They are also important context for any landlord managing or planning to manage a tenancy. I'd always recommend speaking to a specialist letting agent or solicitor about tenancy management alongside taking mortgage advice.

Portfolio landlords

If you own four or more mortgaged buy to let properties you are classed as a portfolio landlord by most lenders. Portfolio landlords face additional underwriting requirements — lenders will want to assess your entire portfolio, not just the property being mortgaged. Not all lenders accept portfolio landlords. I know which ones do and how to present a portfolio case effectively.

Who I work with

  • First time landlords buying their first investment property

  • Existing landlords remortgaging or expanding

  • Portfolio landlords with four or more properties

  • Limited company buy to let investors

  • Landlords with properties in multiple names or structures

FAQs

Can I get a buy to let mortgage as a first time buyer?
Some lenders will consider first time buyer landlords but the pool is smaller than for those who already own a residential property. It is possible and worth exploring. Get in touch and I'll tell you which lenders are likely to consider your application.

Should I buy through a limited company?
This depends entirely on your tax position and long term plans. Limited company buy to let has become increasingly popular since mortgage interest relief was restricted for individual landlords. However it is not right for everyone and involves additional costs and complexity. This is a conversation for your accountant alongside your mortgage adviser. I can work with both individual and limited company applications.

What is an ICR stress test?
ICR stands for interest coverage ratio. It is the calculation lenders use to check the rental income covers the mortgage payment by their required margin, typically 125% to 145%. The stress test applies a higher notional interest rate than the actual product rate to ensure the mortgage remains affordable if rates rise. Different lenders apply different stress rates which is one reason lender selection matters so much on buy to let cases.

Can I live in my buy to let property?
No. A buy to let mortgage is specifically for properties you intend to rent to tenants. Living in a property on a buy to let mortgage would be a breach of your mortgage terms. If your circumstances change and you want to move into a rental property you would need to remortgage onto a residential product.

What is the difference between buy to let and holiday let?
Both involve lending on a property you won't live in but they are assessed and structured very differently. Buy to let lenders assess affordability on a single monthly rental figure from an assured periodic tenancy. Holiday let lenders use projected seasonal income. Holiday let mortgages also permit personal use of the property which buy to let mortgages do not. See my Holiday Let page for more detail.

What happens to my buy to let mortgage under the Renters Rights Act?
Your mortgage itself is not directly affected by the Act. However the changes to tenancy law affect how you manage your tenancy and your ability to end a tenancy if needed. Lenders are aware of the legislative changes and factor them into their underwriting. Speak to a letting agent or solicitor about tenancy management alongside taking mortgage advice.

Can I remortgage a buy to let property?
Yes, and the process is similar to remortgaging a residential property. When your fixed rate ends you can either take a product transfer with your existing lender or remortgage to a new one. I'll compare both options and recommend the right approach.

What if my rental income does not cover the stress test?
Some lenders will take personal income into account alongside rental income, known as top slicing, in cases where the rent alone does not pass the stress test. Not all lenders offer this but it can be a useful option in the right circumstances. Get in touch and I'll tell you whether it applies to your situation.

Do I need a separate mortgage for each property?
Yes, each property requires its own mortgage. If you are a portfolio landlord some lenders will assess your whole portfolio as part of each new application, looking at the overall loan to value and rental coverage across all properties rather than just the one being mortgaged.

The information on this page is intended as a general guide only and was accurate at the time of writing. Lender criteria, tax rules and legislation affecting the private rented sector can change. Please get in touch for current and personalised advice.

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