Investing in property
Buy-to-let mortgages work differently to residential ones. From affordability calculations to ownership structures, we'll make sure you understand your options and find a suitable mortgage based on your circumstances.
The headline figures every buy-to-let investor should know up front:
A 25% deposit is a common starting point for buy-to-let mortgages. Some higher-LTV products may allow a smaller deposit, while other applications may require more.
Lenders commonly want the expected rent to cover around 125% to 145% of a stressed mortgage-interest calculation. The percentage and stress rate vary between lenders, applicants and products.
From high street to specialist BTL lenders — including limited company and HMO products.
Use our buy-to-let calculator to estimate rental yield, monthly cashflow and lender rental cover for a potential investment property.
Buy-to-let lenders typically assess affordability using the expected rental income and a rental stress test. Some lenders also have minimum personal-income requirements or take your wider income and finances into account.
Rental stress test
Expected rent typically needs to cover 125–145% of the mortgage payment at a stressed interest rate.
We'll help you understand what this means in practice and how much you can realistically borrow against a given property.
A rental property can be bought personally or through a limited company, often a special purpose vehicle (SPV). Neither route is automatically better, and the mortgage products, costs and tax treatment can differ. Our guide to limited company buy-to-let mortgages explains how lenders assess the company, property and people behind it.
Simpler and cheaper to set up. Mortgage interest relief is restricted, so higher-rate taxpayers often pay more tax on rental profits.
If you’re buying your first rental property, we’ll help you understand the deposit, rental-affordability and lender requirements that may apply. Criteria for first-time landlords vary, particularly if you do not already own your home.
Tax treatment can differ depending on whether the property is owned personally or through a company. It can also affect how mortgage interest, rental profits and a future sale are treated.
We don't provide tax advice. We'll explain the broad implications and recommend you speak to a qualified tax adviser about your specific situation.
Speak to one of our expert advisers today. No obligation, no jargon — just honest, expert advice.
Your home may be repossessed if you do not keep up repayments on your mortgage.