Finance for your next rental property, or your growing portfolio.
- Support for individuals and limited companies
- From first-time landlords to experienced investors
Your home or property may be repossessed if you do not keep up repayments on your mortgage. All mortgages are subject to status and lender criteria. Most Buy to Let mortgages are not regulated.
What’s a buy-to-let mortgage?
A buy-to-let mortgage is a mortgage used to buy or refinance a property that you intend to rent out rather than live in yourself.
Unlike a standard residential mortgage, lenders often assess a buy-to-let application partly on the rental income the property is expected to generate, as well as factors such as your deposit, credit history, personal circumstances and the property itself.
Many buy-to-let mortgages are arranged on an interest-only basis, although repayment options may also be available.
The mortgage available to you will depend on factors including the property’s value, expected rent, loan-to-value, your landlord experience, ownership structure and lender criteria.
What are you looking to do?
I’m buying my first rental property
Understand deposits, rental-income requirements, mortgage types and what lenders may look for when you become a landlord for the first time.
I’m adding to my portfolio
If you already own rental property, lender criteria may take your wider portfolio and existing borrowing into account.
I’m buying through a limited company
Many property investors consider purchasing through a limited company or SPV. Mortgage criteria and tax treatment can differ from buying personally.
Read our guide to buying through a limited companyI want to remortgage a rental property
Refinancing could allow you to change mortgage deal, release equity or restructure borrowing.
I’m buying an HMO or specialist property
Houses in multiple occupation and other specialist rental properties such as holiday lets can require lenders with more specific criteria.
Read our guide to HMO and specialist property mortgagesI need finance quickly
If timing prevents a conventional BTL mortgage from completing quickly enough, short-term bridging finance may be another option.
Explore bridging finance
Want to talk it through?
Call our friendly team on 0800 888 6500 for free, no-obligation advice or start online with our calculator.
How much can I borrow?
Buy-to-let affordability works differently from a standard residential mortgage. Buy-to-let mortgages generally require a larger deposit than standard residential mortgages.
Many landlords provide a deposit of around 25% or more, although mortgages at higher or lower loan-to-values may be available depending on the lender and circumstances.
Rather than assessing borrowing mainly against your personal salary, lenders usually look closely at the rental income the property is expected to produce.
They may apply a rental affordability calculation or stress test to make sure the expected rent is sufficient to cover the mortgage under their criteria.
Different lenders can calculate this differently, which means the amount available can vary significantly.
Factors can include:
- Expected monthly rent
- Mortgage amount
- Interest rate used for the lender’s stress test
- Loan-to-value
- Your personal income
- Tax status
- Property type
- Whether you own other rental properties
- Whether you’re buying personally or through a limited company
What else does a landlord need to budget for?
Your deposit isn’t the only cost involved in buying a buy-to-let property. Depending on the property and your circumstances, you may also need to budget for:
Mortgage fees
Some mortgage products include arrangement or product fees.
Solicitor or conveyancing fees
You’ll need legal work completed as part of the purchase.
Get a quote nowValuation and survey costs
Your lender may arrange a valuation, while you may also choose to have your own property survey.
Get a quote nowInsurance
Landlord insurance is usually required by mortgage lenders from the appropriate stage of the transaction.
Get a quote nowMaintenance and repairs
Budget for ongoing maintenance, unexpected repairs and replacing fixtures or appliances.
Letting agent fees
If you use an agent, fees may apply for finding tenants, collecting rent and managing the property.
Safety checks and certificates
Landlords may need to pay for required safety checks, certificates and ongoing compliance.
Periods when the property is empty
Allow for periods without a tenant, when you may still need to cover the mortgage and property costs.
Tax on rental profits
Rental income may be taxable, so factor in any tax due on your rental profits.
Guides and insights
Property investment isn’t one-size-fits-all
A first-time landlord buying a single flat needs something very different from an experienced investor refinancing a portfolio.
Morrow helps you understand the mortgage options around your investment strategy.
Specialist buy-to-let knowledge
We understand the difference between straightforward BTL and more complex property investment.
Individual and company borrowing
Explore mortgages for properties held personally or through limited companies and SPVs.
Access to specialist lenders
Different lenders have very different criteria around rental coverage, property type and landlord experience.
Think beyond one mortgage
If you’re growing a portfolio, refinancing or combining BTL with bridging or commercial finance, we can look at the wider picture.