Buy-to-Let Mortgages in the UK
Buy-to-let mortgages are mainly assessed on rental cover rather than personal income. Lender criteria, fees and tax treatment differ sharply from residential — getting the structure right matters.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This page is for landlords and prospective landlords researching UK buy-to-let mortgage criteria.
Quick summary
- Most BTL mortgages are interest-only, with the loan repaid via sale or refinance.
- Lender stress test: rental income usually needs to cover 125–145% of mortgage interest at a stressed rate (often 5.5–8%).
- Limited company (SPV) lending has grown sharply — common for higher-rate taxpayer landlords.
- Minimum deposit is typically 25% (75% LTV).
- Some lenders still require a minimum personal income (often £25k).
What lenders may look at
- Expected rental income vs stressed rate
- Property type and EPC rating
- Borrower experience (portfolio landlord)
- Personal credit + income
- SPV setup and SIC codes (if Ltd)
Documents you may need
- Proof of rental income (existing properties)
- Property details + valuation
- 2 years tax returns or accounts
- Bank statements
- ID + deposit
- SPV incorporation documents (if Ltd)
Practical next steps
- Model rent, void periods, maintenance, insurance and letting costs before relying on gross yield.
- Check whether the property type, EPC rating and tenancy model fit mainstream lender criteria.
- Compare personal ownership and limited company ownership with tax guidance where needed.
- Review rental stress testing before making an offer on an investment property.
Common issues
- Rental income tight against stress test — sometimes solvable with a 5-year fixed (lower stress).
- EPC below E — affects lender appetite and reduces rentability.
- Holiday let or HMO — needs a specialist lender.
- Portfolio landlords (4+ properties) face extra portfolio stress tests.
Frequently asked questions
Is buy-to-let still worth it after tax changes? +
It depends — Section 24 removed mortgage interest relief for individual landlords, which is why many now use SPVs. Yield + capital growth still appeal to many.
What’s the typical rental cover ratio? +
125% for basic-rate / Ltd, 145% for higher-rate individuals, stressed at 5.5–8% depending on lender and product length.
Can a first-time landlord get a BTL mortgage? +
Yes — but the lender pool is narrower and a personal income minimum is more likely to apply.
Should I buy in a limited company? +
Often yes for higher-rate taxpayers building a portfolio. Get tax guidance — there are SDLT, mortgage rate and accounting implications.
Are HMO and holiday let mortgages different? +
Yes — both need specialist lenders with different stress tests and valuation approaches.
Compare related UK mortgage situations
Rate comparison with context
Compare Mortgage Rates is built around comparing mortgage costs beyond the headline rate. Product fees, term, loan-to-value and lender criteria can all change what is appropriate for a borrower.