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 mortgages require a minimum deposit of 20–25% of the property value. Some lenders may require higher deposits depending on your experience, credit profile, or if the property is considered higher risk. -
How is affordability assessed for a buy-to-let mortgage?
Lenders assess affordability based primarily on the expected rental income rather than your personal income. Typically, the rent must cover 125–145% of the mortgage interest, depending on the lender 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 some investors, and there are specialist lenders who cater specifically to limited company buy-to-let mortgages. -
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, and your experience as a landlord. Rates are typically higher than residential mortgages, and can be fixed, tracker, or variable. -
Do I pay extra Stamp Duty on buy-to-let properties?
Yes, buy-to-let properties are usually subject to an additional 3% Stamp Duty surcharge on top of standard rates. This applies to second homes and investment properties across England and Northern Ireland.
