Buy-to-Let Mortgage Advice for Landlords and Property Investors
Whether you’re buying your first rental property, expanding an existing portfolio or looking for finance for a more specialist investment, we can help you understand your buy-to-let mortgage options.
Our independent mortgage advisers can help with standard buy-to-let properties, limited company mortgages, portfolio landlords, HMOs, student lets and other specialist rental properties.
We’ll look at the expected rental income, deposit, property type, your wider circumstances and how you plan to own the property before researching suitable lenders and mortgage options.
First Time Landlords
HMOs and Student Lets
Limited Company Buy-To-Let
Portfolio Landlords
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Buy-to-Let Mortgages – From First-Time Landlords to Portfolio Investors
A buy-to-let mortgage is designed for a property that you intend to rent to tenants rather than live in yourself.
Buy-to-let lending works differently from a standard residential mortgage. Although your personal income and circumstances can still matter, lenders will usually place significant emphasis on the expected rental income from the property and whether it meets their affordability requirements.
Different lenders also have different rules around deposits, minimum income, property types, landlord experience, portfolio size and whether the property is being purchased personally or through a limited company.
That can make comparing lender criteria just as important as comparing interest rates.
At Delta Mortgages, we provide independent, whole-of-market mortgage advice and can help you understand which lenders and mortgage options may suit your circumstances.
How Can a Buy-to-Let Mortgage Adviser Help?
Buy-to-let lenders don't all assess applications in the same way.
We can calculate how the expected rent fits different lenders' affordability tests, compare mortgage rates and fees, check property and landlord criteria and explain the differences between the options available to you.
Once you decide to proceed, we'll manage the mortgage application, deal with lender queries, and help keep things moving through to mortgage offer.
Your initial consultation is free and there’s no obligation to proceed.
Quick Rental Stress Tests
We can check how the expected rental income fits different lenders' affordability calculations.
Whole-of-Market Buy-to-Let Research
We compare options from high-street banks, building societies, and specialist buy-to-let lenders.
Compare Buy-to-Let Rates and Fees
We look beyond the headline rate to compare product fees, mortgage costs and lender criteria.
Decision in Principle
Where available, we can obtain a Decision in Principle using a soft credit search, so you can understand your borrowing options before making an offer.
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Three Simple Steps to Securing Your Buy To Let Mortgage
Whether you’re buying your first rental property or adding to an existing portfolio, we’ll help you understand your borrowing options and guide you through the mortgage process.
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Get Your Buy-to-Let Agreement in Principle
Once you’re ready to proceed, we can arrange an Agreement in Principle where appropriate.
This gives you an indication of how much a lender may be prepared to lend, subject to the property, valuation, underwriting and a full mortgage application.
Once you’ve found a property, we can then manage the mortgage application through to offer.
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We’ll Research Your Buy-to-Let Mortgage Options
We’ll compare buy-to-let mortgages from across the market, looking at interest rates, product fees, rental affordability requirements and lender criteria.
We’ll then explain the options available and recommend a suitable mortgage based on your circumstances and plans.
1
Speak to a Buy-to-Let Mortgage Adviser
Start with a free, no-obligation conversation with one of our mortgage advisers.
We’ll discuss the property you’re considering, your deposit, expected rental income and your plans as a landlord, so we can understand which lenders and mortgage options may be suitable.
How Do Buy-to-Let Mortgages Work?
Buy-to-let mortgages are designed for properties that will be rented to tenants rather than occupied by the borrower.
One of the main differences from a residential mortgage is how lenders assess affordability. Rather than looking only at your personal income, most buy-to-let lenders will also assess the rent the property is expected to generate.
Rental Affordability and Stress Testing
Lenders usually require the expected rental income to cover a certain percentage of a mortgage interest payment calculated using their own stress rate. This is commonly known as a rental stress test or Interest Coverage Ratio (ICR).
The calculation varies between lenders and can depend on factors such as:
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the expected monthly rent
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the mortgage amount
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whether you're buying personally or through a limited company
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the interest rate used for the lender's stress test
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whether you're a basic or higher-rate taxpayer (if you're buying in your personal name)
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the type of property and tenancy.
This means two lenders can offer very different maximum mortgage amounts for exactly the same property and expected rent.
Your Delta mortgage adviser will calculate the rental affordability across suitable lenders and explain how much you may be able to borrow before you commit to a purchase.
Interest-Only or Repayment?
Many buy-to-let mortgages are arranged on an interest-only basis. Your monthly payments cover the interest charged, but the original mortgage balance remains outstanding and must be repaid at the end of the term.
One possible repayment strategy is to sell the property, although other repayment plans may also be acceptable depending on the lender.
Repayment buy-to-let mortgages are also available. With these, each monthly repayment includes both interest and capital, so the mortgage balance reduces over time.
If you choose an interest-only mortgage, the lender will usually want to understand how you intend to repay the outstanding balance at the end of the term.
How Much Deposit Do I Need for a Buy-to-Let Mortgage?
Most buy-to-let mortgages require a larger deposit than a standard residential mortgage.
A 25% deposit is common, giving a mortgage of 75% of the property value, although some lenders offer buy-to-let mortgages at higher loan-to-value ratios. The amount you’ll need will depend on the lender, property type and your circumstances.
Having a larger deposit can give you access to a wider range of mortgage options and may result in more favourable interest rates, although rates and fees still need to be compared together.
Some properties or more specialist forms of buy-to-let lending may require a larger deposit.
Your Delta mortgage adviser can check the deposit and loan-to-value requirements across suitable lenders before you make an offer on a property.
Example property worth £250,000 with a 25% deposit:
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Deposit: £62,500
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Mortgage: £187,500
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Loan-to-value (LTV): 75%
Can I Get a Buy-to-Let Mortgage as a First-Time Landlord?
Yes. Some lenders accept applications from first-time landlords, although the criteria can be different from those applied to experienced landlords.
Lenders may look at factors such as:
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whether you already own your own home
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your personal income
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your deposit
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the expected rental income
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the type of property you’re buying
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your credit history
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whether you’re buying personally or through a limited company.
Some lenders are also more restrictive if you’re a first-time buyer as well as a first-time landlord, so the range of available options may be smaller.
This doesn’t necessarily prevent you from getting a buy-to-let mortgage, but it can make lender selection particularly important.
Your Delta mortgage adviser can check which lenders are suitable for your circumstances and explain the requirements before you make an offer.
Can I Buy a Buy-to-Let Property Through a Limited Company?
Yes. Many landlords choose to purchase buy-to-let property through a limited company rather than in their personal name.
Most lenders that offer this type of mortgage expect the company to be set up specifically for property investment. This is commonly known as a Special Purpose Vehicle (SPV).
An SPV is usually a standard limited company set up specifically to hold property investments. It is registered with Companies House using property-related SIC codes, with the directors and shareholders recorded when the company is formed.
If you're setting up an SPV to obtain a buy-to-let mortgage, speak to us before incorporating the company so we can check whether the proposed structure meets the criteria of suitable lenders.
We also strongly recommend taking advice from a qualified accountant or tax adviser before deciding how to structure the purchase.
Lender criteria for limited company buy-to-let mortgages vary, but they may consider:
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the company structure and SIC code
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who the directors and shareholders are
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the directors' personal income and credit history
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the expected rental income
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the property type
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your experience as a landlord
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the size of any existing property portfolio.
Some lenders will consider a newly-formed SPV, while others have additional requirements. Personal guarantees from company directors are also commonly required.
Is a Limited Company Better for Buy-to-Let?
There isn't one ownership structure that is right for every landlord.
The tax treatment of property owned personally can differ from property owned through a limited company. For example, the rules around mortgage finance costs are different for individual landlords and limited companies.
However, there can also be other tax, accounting, legal and mortgage implications to consider.
We can advise on the mortgage options available to you, but we don't provide tax advice. Once you've decided on the ownership structure with your accountant or tax adviser, your Delta mortgage adviser can research suitable buy-to-let lenders based on that structure.
Let's talk Buy-to-Let!
Speak to a buy-to-let mortgage adviser today and take the first step towards securing your investment.
Buy-to-Let Mortgages for Portfolio Landlords
If you already own several rental properties, lenders may assess your application differently from a standard buy-to-let case.
For mortgage underwriting purposes, a portfolio landlord is generally someone with four or more mortgaged buy-to-let properties.
When you apply for another mortgage, the lender may assess not only the new property, but also your existing portfolio.
They may consider:
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the number of properties you own
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the outstanding mortgage balances
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the rental income across the portfolio
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the loan-to-value of each property
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your overall portfolio loan-to-value
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your experience as a landlord
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any limited company or SPV structures
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your personal income and wider financial position.
Some lenders also apply their own limits on the number of properties or total borrowing they'll accept.
This means a lender that is suitable for a landlord with one or two rental properties may not necessarily be suitable once the portfolio grows.
Your Delta mortgage adviser can review your existing portfolio alongside the proposed purchase and research lenders whose criteria fit your circumstances.
4+ mortgaged BTL properties
Existing portfolio may be assessed
Lender criteria can vary significantly
Specialist Buy-to-Let Property Types
Some rental properties need more specialist mortgage criteria than a standard buy-to-let. We can help with a range of property types, including HMOs, multi-unit freehold blocks and holiday lets.
HMO and Student Buy-to-Let Mortgages
If you're buying a property that will be rented to several unrelated tenants, you may need an HMO mortgage rather than a standard buy-to-let mortgage.
HMO stands for House in Multiple Occupation. Whether a property is treated as an HMO for mortgage purposes can depend on the lender as well as the property's occupation and licensing arrangements.
Specialist lenders may consider properties such as:
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shared houses rented by several individuals
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student accommodation
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properties with multiple tenancy agreements
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larger HMOs with several letting rooms
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HMOs owned personally or through a limited company.
Lenders can apply different requirements around landlord experience, loan-to-value, rental affordability, property layout, valuation, and licensing. Some lenders also use a higher rental stress test for HMO properties than for standard buy-to-let lending.
Do I Need an HMO Licence?
Licensing rules depend on the size of the property, how it is occupied and the local authority area. Some properties require mandatory HMO licensing, while additional or selective licensing schemes can also apply locally.
It's important to check the licensing requirements with the relevant local authority before committing to a purchase or conversion.
Your Delta mortgage adviser can check suitable HMO and student buy-to-let lenders and explain the mortgage criteria that apply to the property you're considering.
Multi-Unit Freehold Block Mortgages
A Multi-Unit Freehold Block (MUFB) is a property containing more than one self-contained residential unit held under a single freehold title.
Examples can include:
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a house converted into several self-contained flats
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a small block of flats held on one freehold title
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a property with separate units, each with its own kitchen and bathroom.
MUFBs are usually treated differently from standard buy-to-let properties and HMOs, so they often require a lender with specific criteria for this type of property.
Lenders may consider factors such as:
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the number of self-contained units
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the property's title structure
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the expected rental income
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whether the units can be let separately
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the landlord's experience
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the overall property value and loan-to-value
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whether the property is owned personally or through a limited company.
Some mainstream buy-to-let lenders won’t accept properties made up of multiple self-contained units under a single title, while specialist lenders may have criteria specifically designed for this type of property.
Your Delta mortgage adviser can check whether the property needs specialist MUFB lending and research suitable mortgage options based on its layout, title and expected rental income.
Holiday Let Mortgages
If you plan to rent a property to short-term guests rather than to a tenant on a standard residential tenancy, you may need a holiday let mortgage rather than a standard buy-to-let mortgage.
Holiday let lenders can assess applications differently because the income is often seasonal and the property may be occupied by different guests throughout the year.
They may consider factors such as:
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the expected annual rental income
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the property's location and likely demand
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seasonal variations in occupancy
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whether the property will also be available for your own use
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your deposit and loan-to-value
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whether you already have landlord or holiday-let experience
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whether you're buying personally or through a limited company
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how you plan to advertise and let the property.
Some lenders are comfortable with properties let as holiday accommodation but are more restrictive about very short-term bookings or properties advertised through platforms such as Airbnb and similar websites.
A lender may also distinguish between a traditional holiday let, a short-term let and serviced accommodation, so it's important that the intended use of the property is clear from the outset.
If you're planning to use Airbnb or another short-term letting platform, tell us early on so we can check which lenders are likely to be suitable before you commit to a purchase.
Some mainstream buy-to-let lenders don't accept holiday lets at all, so the choice of lender can be more specialist.
Your Delta mortgage adviser can check how you plan to use the property, compare suitable holiday let mortgage options and explain any lender restrictions before you apply.
A selection of lenders we work with
What Costs Should I Consider When Buying a Buy-to-Let Property?
The mortgage payment isn't the only cost to consider when buying a rental property. Your overall budget should also allow for the costs of purchasing, owning and maintaining the property.
Buy-to-let mortgages usually require a larger deposit than residential mortgages. A 25% deposit is common, although the amount required will depend on the lender, property and your circumstances.
Stamp Duty Land Tax (SDLT) can add a significant amount to the cost of buying a buy-to-let property, so it’s important to include it in your budget from the outset.
In England and Northern Ireland, higher rates of SDLT will usually apply when buying an additional residential property. This includes many buy-to-let purchases.
If you're buying a residential property through a limited company, the higher rates will also usually apply, even if the company doesn't already own another property. Different rules can apply to certain higher-value company purchases and some transactions may qualify for relief, so it's important to confirm the position before proceeding.
You can use the GOV.UK Stamp Duty Land Tax calculator to estimate how much SDLT may be payable on a purchase.
Different property taxes and rules apply in Scotland and Wales, so make sure you check the relevant rules if you're purchasing a property there.
The amount of tax payable can depend on your individual circumstances and how the property is being purchased.
Your solicitor or conveyancer will normally calculate the SDLT due as part of the transaction, and you should speak to a qualified accountant or tax adviser if you need advice about the tax implications of owning property
personally or through a limited company.
Delta Mortgages does not provide tax advice.
Delta Mortgages is not responsible for the accuracy of the information contained within the linked site(s) accessible from this page.
Some buy-to-let mortgages have a product or arrangement fee.
These can be a fixed amount or calculated as a percentage of the mortgage, which can make a significant difference on larger loans. Depending on the lender, the fee may be payable upfront or added to the mortgage.
We’ll compare the overall cost of suitable mortgage options rather than looking at the interest rate alone, because a lower rate can sometimes come with a higher product fee.
On larger buy-to-let loans, percentage-based fees can make a significant difference to the total cost, so the cheapest-looking rate isn’t always the most cost-effective option overall.
The lender will normally arrange a valuation of the property as part of the mortgage application to check that it is suitable security for the loan.
Depending on the lender and mortgage product, the valuation may be free or there may be a fee. Where a fee applies, it is often based on the value of the property and can range from a few hundred pounds upwards.
A lender’s mortgage valuation is carried out for the lender’s benefit and is not the same as a more detailed property survey. You may choose to arrange your own survey for a more thorough assessment of the property’s condition, which would be at an additional cost.
You'll need a solicitor or conveyancer to deal with the legal work involved in the purchase.
If you're buying through a limited company, using specialist lending or purchasing a more complex property, legal costs can be higher.
Some lenders allow dual representation, where the same solicitor acts for both you and the lender. This is usually the simplest and most cost-effective arrangement, provided your solicitor is on the lender's approved panel.
Other lenders require separate representation. This means you have your own solicitor, while the lender appoints a different solicitor to act for them. You may be asked to pay the lender's legal costs as well as your own, so this can increase the overall cost of the transaction.
Separate representation is more common with some specialist buy-to-let lenders, limited company applications and more complex property types.
We'll let you know if separate representation is likely to apply when we recommend a mortgage, so you can factor the additional legal costs into your budget.
If you use a letting agent, you'll need to allow for their fees as part of your ongoing costs.
Some landlords use an agent just to find a tenant and set up the tenancy, while others pay for a fully managed service covering things like rent collection, inspections, maintenance queries, and dealing with tenants.
Fees vary between agents and by the level of service, so it's worth getting a clear breakdown before you buy.
When we're looking at your mortgage options, we'll consider the expected rent alongside your wider costs so you have a more realistic picture of how the property may perform.
Even a well-maintained property will need money spent on it over time.
You may need to budget for routine maintenance, decorating, replacement appliances, safety checks and unexpected repairs. Larger costs, such as a new boiler or roof repairs, can also arise.
Keeping some money aside for these costs can help avoid having to rely on rent alone to cover everything.
We'll focus on whether the mortgage itself is affordable and suitable, but it's important to look at the wider running costs too before deciding how much to borrow.
A void period is a time when the property is empty and you're not receiving rent.
This could happen between tenants, while work is being carried out, or if it takes longer than expected to find a new tenant.
Your mortgage and other property costs will usually still need to be paid during this time, so it's sensible to keep a financial buffer in case the property is empty between tenants. Some lenders may also consider whether you have enough income or savings to cover the mortgage during periods without rent.
You'll normally need suitable buildings insurance as a condition of the mortgage.
Standard home insurance may not be appropriate for a rented property, so landlords often use specialist landlord insurance instead. Depending on the policy, this can include cover for things such as buildings, contents you provide, property-owner liability and loss of rent following certain insured events.
The right cover will depend on the property and how it is let, so check the policy carefully rather than choosing on price alone.
Your mortgage adviser can explain any insurance requirements attached to the mortgage, although the insurance itself should be chosen based on the cover you need.
Risks and Responsibilities of Buy-to-Let
Buy-to-let can involve more than just choosing the right mortgage. Rental income isn’t guaranteed, property values can fall, costs can change, and landlords have ongoing legal and maintenance responsibilities.
It’s important to consider the wider picture before you buy, not just whether the mortgage works on paper. We’ll help you understand the mortgage costs, rental affordability and lender requirements so you can make a more informed decision before committing to a property.
Periods without rent
Rental income isn't guaranteed. You may still need to cover the mortgage and other property costs while the property is empty or if rent isn't received.
Maintenance costs
Repairs, safety checks, replacement appliances, and larger unexpected costs can all affect the return from a rental property, so it's sensible to keep money aside.
Interest rate changes
Your mortgage payments could increase when a fixed or discounted deal ends, or sooner if you choose a variable-rate mortgage.
Property values can fall
Property prices can go down as well as up. If you need to sell, the property may be worth less than you expected or, in some circumstances, less than the mortgage outstanding.
Buy-to-Let vs. Let-to-Buy... What’s the Difference?
Buy-to-Let
You buy a property specifically to rent to tenants rather than live in yourself. The mortgage is assessed using buy-to-let lending criteria, including the expected rental income.
Let-to-Buy
You keep your existing home and rent it out while buying another property to live in. This can involve changing the mortgage on your current home and arranging a separate residential mortgage for your new property.
Frequently Asked Questions for Buy-to-Let Mortgages
Buy-to-let mortgages can work quite differently from residential mortgages, and lender criteria can vary depending on the property, rental income, deposit, ownership structure, and your experience as a landlord.
We’ve answered some of the questions we’re most commonly asked below. If your situation is more unusual, or you’d like us to check how a lender is likely to view your circumstances, speak to one of our mortgage advisers.
Buy-to-let borrowing is usually based largely on the rent the property is expected to generate.
This differs from a residential mortgage, where affordability is generally assessed using the applicants’ income, expenditure and wider circumstances.
Lenders apply their own rental affordability calculation, often called a stress test or Interest Coverage Ratio (ICR). They may also consider your personal income, tax position, deposit, existing mortgages and whether you're buying personally or through a limited company.
Because each lender calculates this differently, two lenders can arrive at very different maximum loan amounts for the same property.
We can run the rental figures across suitable lenders before you make an offer, so you have a clearer idea of how much you may be able to borrow.
Buy-to-let mortgage rates can be higher than rates on residential mortgages, although this varies depending on the market, lender, loan-to-value and type of property.
It's also important to look beyond the interest rate. Buy-to-let products can have arrangement fees that are either fixed or calculated as a percentage of the mortgage, so the lowest rate isn't necessarily the lowest-cost option.
We'll compare the rate, fees and overall cost of suitable mortgages rather than simply choosing the lowest headline rate.
There isn't one universal limit.
Some lenders place limits on the number of rental properties they'll accept, the total amount you can borrow with them, or the size of your overall property portfolio.
If you have four or more mortgaged buy-to-let properties, you're generally treated as a portfolio landlord for mortgage underwriting purposes. This can mean the lender looks at your existing properties as well as the new mortgage you're applying for.
If you're growing a portfolio, we can take your existing borrowing into account when researching lenders rather than looking at each property in isolation.
Potentially, yes. A previous credit issue doesn't automatically mean you can't get a buy-to-let mortgage. What matters can include the type of credit problem, how serious it was, how long ago it happened and whether it has since been resolved.
Different lenders take very different approaches to missed payments, defaults, CCJs and other adverse credit.
Please tell us about any credit issues at the outset. We can check lender criteria before submitting an application and avoid unnecessary applications to lenders that are unlikely to accept the case.
Generally, no. A standard buy-to-let mortgage is intended for a property that is rented to tenants rather than occupied by you as your main home.
Moving into the property without the lender's agreement could breach the conditions of the mortgage.
If your circumstances change and you want to live in the property, speak to your mortgage adviser first. We can help you check what your existing lender allows and whether you would need to change the mortgage or arrange different finance.
If your plans are likely to change, tell us before you apply so we can make sure the mortgage is suitable for how you intend to use the property.
Possibly, but you need to tell the lender.
Many standard buy-to-let lenders have restrictions where the property will be occupied by a close family member. Depending on the circumstances, the mortgage may be treated differently and a smaller range of lenders may be available.
Don't take a standard buy-to-let mortgage and then let the property to a family member without checking the lender's rules first.
If you're buying a property for a relative to live in, let us know from the start so we can look specifically at lenders that accept this arrangement.
Yes, it can be possible to remortgage a rental property and borrow more against it.
Landlords may release equity for reasons such as funding another property purchase, carrying out improvements or reorganising their finances.
How much you can release will depend on factors including the property's value, outstanding mortgage, expected rent, loan-to-value and the lender's affordability criteria. The lender may also ask what the additional borrowing will be used for.
We can compare the cost of staying with your existing lender against remortgaging elsewhere and check whether the rental income supports the amount you want to borrow.
Many buy-to-let mortgages taken for business or investment purposes are not regulated in the same way as a standard residential mortgage.
However, some arrangements can fall into a different category — for example, where a property is rented to a close family member or where the letting isn't primarily being carried out as a business.
This can affect which mortgage products and lenders are appropriate.
If you're unsure how your situation will be treated, tell us how the property will be used and who will live there. We can check the appropriate mortgage route before you apply.
Not always. Some lenders have a minimum personal income requirement, while others may be more focused on the expected rental income from the property. Requirements can also differ for first-time landlords, portfolio landlords and limited company applications.
Your employment type doesn't automatically prevent you from getting a buy-to-let mortgage either. Lenders may consider employed, self-employed, pension, and other sources of income, depending on their criteria.
We'll check the income requirements of suitable lenders rather than assuming you need to meet one standard figure.
Yes, some lenders accept first-time buyers who want to purchase a property to let rather than live in themselves.
However, the choice of lenders can be smaller, and some will apply additional criteria such as minimum income or affordability checks.
You should also think carefully about whether buying a rental property first could affect your position when you later buy a home to live in, including possible property-tax implications.
If you're a first-time buyer considering buy-to-let, we can look at both your immediate mortgage options and how the decision could affect your future residential borrowing.
Planning a Buy-to-Let Purchase?
Whether you're buying your first rental property, expanding a portfolio or considering a more specialist property, we'll help you understand the mortgage options available.
We can check rental affordability, lender criteria, rates and fees, and help you understand any requirements that apply to the property or ownership structure before you proceed.
Your initial consultation is free and there's no obligation to proceed.
Meet the Team That’s Got Your Back
At Delta Mortgages, we combine decades of experience with down-to-earth support that actually helps. No scripts. No waffle. Just friendly mortgage brokers who bring clarity, calm—and a bit of personality—to every step of your journey.
Get to know the people who’ll guide you from start to keys.
The Financial Conduct Authority does not regulate most forms of buy-to-let mortgage.
Your property could be at risk if you do not keep up repayments on a mortgage, or any debt secured on it.
Written and reviewed by: Lauren Drake
Credentials: Mortgage, Protection & Equity Release Adviser – CertCII (MP & ER)
Date last reviewed: 28 September 2026
This page has been reviewed for accuracy and relevance. Mortgage criteria, product availability and legislation can change.
