Buy-to-let mortgages

Rent is assessed, not simply accepted at face value

Lenders may test rent against an interest coverage ratio at a specified stress rate. The required ratio and rate can vary with the product, borrower tax position, ownership structure and lender. A letting agent's expected rent is not a guarantee of the lender's valuation or acceptance.

Do not assume that a rental-cover calculation accounts for all the costs of being a landlord. Repairs, insurance, licence costs, management fees and periods without rent still need a realistic budget.

Deposit, fees and the repayment strategy

BTL deposit and loan-to-value requirements vary. Compare arrangement fees carefully: a percentage-based fee can be significant on a larger loan. If a fee is added to the mortgage, compare the extra interest and the remaining balance too.

An interest-only mortgage leaves the capital outstanding at the end of the term. You need a credible repayment strategy and must understand the risk if a planned sale or refinance is unavailable. A residential repayment calculator is not a BTL eligibility checker.

Personal and company ownership are different decisions

Whether to own a rental property personally or through a company is not just a mortgage-rate choice. Borrower eligibility, guarantees, legal work, tax and future plans matter. Moving an already owned property into a company can be a new transaction with significant costs.

Ask about the mortgage service available for your proposed arrangement and obtain independent tax and legal advice. Do not assume company ownership is always cheaper or that a lender will accept every company structure.

Check the property use and local obligations

A standard single-household letting, an HMO, a student let and short-term accommodation can have different lending, licensing and planning requirements. Describe the intended use accurately before comparing products. Specialist cases need an individual discussion; a generic BTL page is not confirmation of specialist finance availability.

Check the relevant council's current requirements and the rules for the property's UK nation. A mortgage offer does not replace a licence, planning consent, landlord registration or safety obligations.

Reviewing an existing landlord mortgage

For a remortgage, gather the current balance, charge schedule, rent, tenancy information and details of other properties and loans where relevant. A lender may reassess both the property and the broader portfolio.

Most BTL mortgages are not regulated by the FCA, but some circumstances fall within regulated categories. Complaint or compensation eligibility depends on the activity and circumstances; it is not universal.

Documents you'll need

Requirements vary by lender and circumstances, but most applications ask for:

• Deposit or equity details.
• Personal income evidence.
• Expected or current rent and tenancy details.
• Details of other rental properties.

Fees

We don't charge a broker fee for mortgage advice. Lenders pay us a procuration fee when your mortgage completes. Lender product fees, valuation and legal costs, and any early repayment charge on an existing mortgage, may still apply. We set out every cost before you proceed.

Does cashback apply?

Cashback may be available on eligible cases once your mortgage completes. The amount depends on the type of mortgage and the loan size, and we confirm it and the conditions in writing before you proceed. Cashback is subject to eligibility and conditions.

Guides and calculators

Read more before you speak to us, or use a calculator to explore the numbers.