Buy to Let

Buy to Let Market in the UK

The Buy to Let property market in the UK is an investment area that attracts both experienced investors and individuals seeking alternative income sources. Investing in Buy to Let properties can be an attractive option, allowing for the generation of regular rental income and potential capital growth over time.

What is Needed to Get a Buy to Let Mortgage?

To obtain a Buy to Let mortgage, you should have a solid investment plan and mortgage affordability confirmed by the bank. Many lenders also require you to have at least a 25% deposit, although there are options for investors with a smaller deposit.

Additionally, your rental income must cover the mortgage costs, usually meaning that the rent is expected to generate at least 125% of the mortgage payment.


Property Price£200,000
Deposit – 25%£50,000
Loan Amount£150,000
Monthly Interest at 5% rate£625
Required Ratio125%
Minimum Required Rent£781,25

Calculation Methodology:

  • Monthly Interest at 5% rate

£150,000 (loan amount) x 5% (interest rate) / 12 (number of months) = £625

  • Minimum Required Rent

£625 (monthly interest at 5% rate) x 125% = £781.25

Additionally, a significant requirement is usually owning a residential property in the UK. Most lenders expect that the person applying for a Buy to Let mortgage will have their own property.

What to Consider When Choosing a Buy to Let Investment Property?

When selecting a Buy to Let investment property, it’s important to consider factors such as location, rental demand, property condition, and potential return on investment. Many individuals have different investment strategies, and there is no one-size-fits-all approach. Many people starting their venture into rental properties opt for easy-to-manage houses or apartments suitable for working individuals, couples, or families with children. Typically, these properties are let under a standard Assured Shorthold Tenancy Agreement (AST), where the property is rented as a single household, and one or two people are responsible for the property.

Those seeking higher returns often look for more non-standard solutions, such as renting to students, room rentals, or short-term rentals. While these investments can often yield higher income, they usually require more time and involvement in management.

One crucial aspect to always remember when purchasing a Buy to Let property is to have the proper home insurance prepared under Landlords insurance rules and tailored to the type of rental and the category of people living in the property.

Let to Buy Mortgages

For individuals who want to purchase a new residential property but do not want to sell their current home, the Let to Buy option can be an attractive alternative. It allows for renting out the current property and converting the existing residential mortgage into Buy to Let mortgage terms – in practice, this is a refinancing process (remortgage). Our company also provides support for Let to Buy mortgages, assisting clients in understanding the terms and finding the most suitable financial solutions.

HMO Property Purchase Mortgages

Properties rented out on a per-room basis (known as HMO – Houses in Multiple Occupation) are a popular choice for Buy to Let investors in the UK, as they often allow for higher rental income. However, obtaining a mortgage for such properties can be more complicated because lenders often have stricter requirements for the buyer’s experience in managing Buy to Let properties. A higher deposit may be necessary, and the property itself must meet certain criteria to be suitable for room rentals.

Purchase and Remortgage of Buy to Let Properties

Buying a Buy to Let property is just one part of an investment strategy. Once you own a property, there are various options, including remortgaging, that can help you optimize your investment return.

Remortgaging a Buy to Let property can be a strategic move, allowing you to reduce monthly mortgage payments, increase rental profits, or get additional funds for further investments. Our company provides support and advice for Buy to Let remortgages, helping you find the most suitable mortgage terms tailored to your investment needs. Feel free to contact our team to learn more about the benefits of remortgaging Buy to Let properties and our services in this area. We are here to help you maximise the potential of your investments and succeed in the property market.

Purchasing Buy to Let Properties through a Limited Company

Many people choose to buy Buy to Let properties through a Limited Company due to potential tax benefits and long-term plans for expanding their rental property portfolio. In such cases, the process to obtain a suitable mortgage may differ from the standard, so it’s worth seeking assistance from a specialist who can help you understand all requirements and options.

Our Company’s Buy to Let Mortgage Advice Solutions

Our company offers comprehensive advice and support for Buy to Let mortgages, helping our clients find the most appropriate mortgage solutions.

Types of mortgages we can assist you with:

  • Purchase of Buy to Let properties
  • Buy to Let Remortgage
  • Transforming residential mortgages to BTL basis – Let to Buy
  • Properties rented out on a per-room basis – HMO (Houses in Multiple Occupation)
  • Multi-units (e.g. block of 4 flats on a single freehold)
  • Short-term rentals – Short term / Holiday Lets
  • Limited company BTLs

With our experience and knowledge of the UK mortgage market, we provide professional advice at every stage of the application process. Take advantage of our mortgage advisory services to minimise investment risks and maximize returns on your Buy to Let investments.

A mortgage is a loan secured against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.

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