| Typical deposit | 25% (some lenders accept 20%) |
|---|---|
| Maximum LTV | Usually 75%, sometimes 80% |
| Affordability test | Rent must cover interest by 125%–145% at a stressed rate |
| Common repayment type | Interest-only, with repayment also available |
| Minimum income | Some lenders ask for £25,000+; others have none |
| Stamp duty | 5% surcharge on additional homes in England and NI |
| FCA regulation | Usually not regulated, unless it is consumer buy-to-let |
Who is this for?
- First-time landlords buying a rental property in their own name
- Existing landlords remortgaging to a better deal or to release equity
- Homeowners keeping their current home and letting it out
- Overseas and UK expat investors buying in London or the regions
- Landlords with complex income who need a specialist lender
What is a buy-to-let mortgage?
A buy-to-let mortgage is secured on a property that you let to tenants rather than live in. Lenders assess it mainly on the rent the property can earn. Your own income and credit history still matter, but the rent usually drives how much you can borrow.
Most buy-to-let mortgages are taken on an interest-only basis. Your monthly payment covers the interest only, and the full loan is repaid at the end of the term, often from the sale of the property. Repayment buy-to-let is available if you prefer to clear the debt over time. If you choose interest-only, you need a credible plan to repay the balance.
You can buy in your own name, jointly, or through a limited company. Our limited company buy-to-let page explains the company route.
What types of buy-to-let mortgage are there?
Buy-to-let mortgages come in the same broad forms as residential loans. The right choice depends on how long you plan to hold the property and how much certainty you want.
- Fixed rate: the rate stays the same for a set period, often two or five years. Five-year fixes may also help affordability, because many lenders stress them at a lower rate.
- Tracker: the rate moves with the Bank of England base rate, plus a margin. Payments can rise or fall.
- Specialist products: for HMOs, holiday lets, multi-unit blocks, new-build flats and properties above commercial units.
Look beyond the headline rate. Arrangement fees, valuation fees and early repayment charges all affect the true cost. A large fee added to the loan can also reduce the amount the rent will support.
How much can I borrow on a buy-to-let mortgage?
Most lenders use an interest cover ratio (ICR). The expected monthly rent must cover the monthly interest by a set margin, calculated at a stressed rate rather than the actual pay rate. The lower of this figure and the lender's loan-to-value limit sets your maximum loan.
- Basic-rate taxpayers: lenders typically ask for rent of 125% of the stressed interest.
- Higher and additional-rate taxpayers: many lenders ask for 145%, because tax relief on mortgage interest is restricted for individual landlords.
- Stress rate: often the pay rate plus around 2%, or a minimum floor. On fixed rates of five years or more, many lenders stress at or near the pay rate.
Some lenders allow "top slicing", where your personal surplus income makes up a shortfall in rent. This can help on lower-yield properties, such as many in central London. Our ICR guide and buy-to-let calculator show how the numbers work.
How big a deposit do I need for buy-to-let?
Most lenders ask for a deposit of at least 25%, so they lend up to 75% loan-to-value. A smaller number of lenders go to 80%, usually at higher rates or with tighter criteria. A bigger deposit typically gives access to more lenders and lower rates.
Lenders usually want to see where your deposit comes from. Savings, equity released from another property and gifts from family can all be acceptable, depending on the lender. Some lenders do not accept gifted deposits for buy-to-let, so plan early.
Who can get a buy-to-let mortgage?
Many lenders prefer applicants who already own a home. Some will lend to first-time buyers or first-time landlords, but choice is narrower. Common criteria include:
- A minimum age, often 21, and a maximum age at the end of the term
- A minimum personal income with some lenders, while others set none
- A clean or explainable credit history
- A property that is mortgageable, in good condition and readily lettable
Self-employed landlords, company directors, expats and foreign nationals can all get buy-to-let mortgages. They often need a lender that understands their circumstances. This is where a specialist broker can save time.
What taxes and costs should landlords plan for?
Buy-to-let is an investment, so check the full costs before you buy. Speak to a tax adviser about your own position. OMB does not give tax advice.
- Stamp duty: in England and Northern Ireland, buying an additional residential property usually adds a 5% surcharge to every band. Scotland and Wales have their own surcharges. Our stamp duty calculator can help.
- Income tax: individual landlords cannot deduct mortgage interest from rental income. Instead they get a tax credit at the basic rate (the Section 24 rules). From April 2027, separate property income tax rates are due to rise by two percentage points in England, Wales and Northern Ireland.
- Capital gains tax: may be due when you sell a property that is not your main home.
- Running costs: letting fees, insurance, repairs, safety certificates, licensing and void periods.
What are the rules for landlords in 2026?
Lettings rules in England changed significantly in 2026. The Renters' Rights Act began coming into force from 1 May 2026. It ends "no-fault" Section 21 evictions and moves most tenancies to rolling periodic agreements. Landlords need a valid legal ground to regain possession.
The government has also confirmed that most privately rented homes in England should reach an EPC rating of C by 2030, with a cap on required spending. Lenders increasingly check energy ratings, and some offer better terms on more efficient homes. Scotland, Wales and Northern Ireland have their own lettings rules.
Why use OMB for a buy-to-let mortgage?
OMB was named Buy-to-Let Mortgage Broker of the Year at the Business Moneyfacts Awards 2023. We are independent and whole-of-market. That means we compare high-street banks, building societies, specialist landlord lenders and private banks.
Our advisers look at rent, tax status, ownership structure and future plans together. We then recommend a lender whose criteria fit. Many of our clients are London-based or international investors with complex income. We also arrange loans for landlords across the UK, including portfolio landlords and HMO investors.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. A broker fee may apply, typically £500 and up to 1% of the loan. We will always confirm any fee before you proceed.
Run the numbersMaximum loan from rent using lender ICR stress tests (125% / 145%).
Buy-to-let calculatorHow we arrange it
- Free 15-minute call to understand your plans
- Rental affordability and deposit check
- Whole-of-market lender comparison and recommendation
- Application, valuation and offer managed for you
- Completion and a review before your deal ends
Example cases
Illustrative examples based on the type of case we arrange. Not specific clients; every case is different.
£337,500 buy-to-let at 75% LTV for a first-time landlord in Walthamstow
£180,000 buy-to-let remortgage at 69% LTV using top-slicing in Manchester
£224,000 buy-to-let at 70% LTV on a non-standard construction house in Bristol
From the blogBuy-to-let after the Renters' Rights Act: is it still worth it in 2026?
Read the articleFrequently asked questions
Can I get a buy-to-let mortgage as a first-time buyer?
Yes, some lenders accept first-time buyers for buy-to-let, but choice is limited. Many lenders want you to own your own home first. Those that accept first-time buyers may ask for a larger deposit, a minimum income or evidence that you can manage a let. A broker can identify which lenders currently consider this.
How much deposit do I need for a buy-to-let mortgage?
Most lenders ask for at least 25% of the purchase price. A smaller number accept 20%, usually with higher rates or stricter criteria. A larger deposit of 35–40% often gives access to the lowest rates and makes the rental affordability test easier to pass.
How is buy-to-let affordability calculated?
Lenders usually check that the monthly rent covers the monthly interest by 125% to 145%, worked out at a stressed interest rate. The exact ratio depends on your tax band, the product length and the lender. Some lenders also allow your personal income to top up a rental shortfall.
What is the minimum income for a buy-to-let mortgage?
It depends on the lender. Some set a minimum personal income, often around £25,000 a year. Others have no minimum and rely mainly on the rent. Lenders still want to see that you can cover voids and repairs without financial strain.
Are buy-to-let mortgages regulated by the FCA?
Most are not, because they are business lending for investment purposes. Consumer buy-to-let is different. It covers cases such as letting a former home you did not buy as an investment, or letting to close family. These cases have extra protections under separate rules.
Should I choose interest-only or repayment?
Interest-only gives lower monthly payments and better cash flow, which is why most landlords choose it. But the full loan remains at the end of the term. Repayment costs more each month but reduces the debt. Some landlords mix both. You need a clear plan for repaying an interest-only loan.
Can I let out my current home instead of selling it?
Yes. You can switch your existing mortgage to a buy-to-let mortgage, or ask your lender for consent to let. This is often done alongside buying your next home. See our let-to-buy page for how this works. Letting a former home you did not buy as an investment may count as consumer buy-to-let.
Can I get a buy-to-let mortgage if I live abroad?
Yes. Several lenders offer buy-to-let mortgages to UK expats and foreign nationals. Criteria vary on country of residence, income currency and deposit size. Non-UK residents usually pay an extra 2% stamp duty surcharge in England and Northern Ireland. Expect a larger deposit with some lenders.
Can I get a buy-to-let mortgage with bad credit?
Possibly. Specialist lenders may consider missed payments, defaults or CCJs, especially if they are older and settled. Expect a larger deposit and higher rates. The details of your credit history matter, so share them early with your broker. Recent or unsettled problems narrow the choice further.
Do I pay extra stamp duty on a buy-to-let?
Usually yes. In England and Northern Ireland, buying an additional residential property adds a 5% surcharge to each stamp duty band. Scotland and Wales have their own higher rates. There are limited exceptions, such as replacing your main home. Use our stamp duty calculator for an estimate.
Is it better to buy in my own name or a limited company?
It depends on your tax band, how many properties you own and your long-term plans. Higher-rate taxpayers often look at a company because companies can deduct mortgage interest as a cost. Company mortgages can be more expensive. Take tax advice before deciding.
How long does a buy-to-let mortgage take?
Timescales vary with the lender, the valuation and how quickly documents are provided. Straightforward cases are often faster than complex ones involving overseas income or unusual properties. Having your ID, proof of deposit and tenancy details ready helps avoid delays.
Important: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.