Buy to Let Mortgage
Investing in rental property? We'll help you find the best BTL mortgage tailored to your investment strategy.
What is a Buy to Let mortgage?
A Buy to Let (BTL) mortgage is a specialist mortgage designed for people who want to purchase a property to rent out. Unlike a standard residential mortgage, affordability for BTL is assessed primarily on the potential rental income rather than your personal earnings.
BTL mortgage requirements
- Minimum deposit: typically 25% of the property value (some lenders accept 20%)
- Rental income: must cover 125–145% of the monthly mortgage payment
- Minimum personal income: most lenders require at least £25,000 per year
- Own home: most lenders require you to own your own home
- Credit history: must be clean or with minor issues
Types of BTL mortgages
- Interest Only — you pay only the interest each month; the capital is repaid at the end (most popular with investors)
- Repayment — you repay both capital and interest each month
- HMO (House in Multiple Occupation) — specialist products for properties let by the room
- Portfolio BTL — for investors with 4 or more BTL properties
Taxes and costs with BTL
Investing in BTL property comes with several important tax considerations:
- Stamp Duty — an additional 3% surcharge on BTL purchases (on top of standard rates)
- Income tax — rental income is taxable
- Capital Gains Tax — applies when you sell the property
We recommend consulting a tax adviser before purchasing a BTL property.
Note: Most BTL mortgages are not FCA regulated
The majority of Buy to Let mortgages are not regulated by the Financial Conduct Authority. The exception is Consumer BTL — when you're letting to a close family member. Our advisers will explain all the details and help you choose the right product.
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