Buy-to-Let Mortgage FAQs
Here’s a quick guide to the most common questions we’re asked about buy-to-let mortgages. If you can’t find the answer you need, our expert advisers are always here to help.
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How much deposit do I need for a buy-to-let mortgage?
Most UK buy-to-let lenders require a minimum deposit of 25% of the property value. Some lenders may require higher deposits depending on the rental amount, borrowing structure, property type or tenancy type. -
How is affordability assessed for a buy-to-let mortgage?
Lenders assess affordability based primarily on the rental amount being received. Typically, the rent must cover 125–140% of the mortgage interest, depending on ownership structure, tenancy type and your tax status. -
Can I get a buy-to-let mortgage through a limited company?
Yes, many landlords now purchase property through a limited company (SPV). This can offer tax efficiencies for investors and allow for portfolio expansion. There are many BTL lenders who cater specifically in the specialist mortgage market to serve limited company buy-to-let investors. -
What interest rates are available for buy-to-let mortgages in the UK?
Buy-to-let mortgage rates vary depending on factors such as deposit size, property type, tenancy type and your experience as a landlord. Due to the broadening of the BTL mortgage market rates can be as competitive as traditional residential mortgages. -
Do I pay extra Stamp Duty on buy-to-let properties?
Yes, buy-to-let properties are usually subject to an additional 5% Stamp Duty surcharge on top of standard rates. This applies to second homes and investment properties across England and Northern Ireland. Please use our Stamp Duty Calculator to work out your liability.
