Cashback Remortgages · Buy-to-let
How Buy-to-Let Mortgages Work
Buy-to-let mortgages are for property you let rather than live in, and are assessed differently from residential mortgages. The rent, not just your income, drives the lending.
The essentials
Buy-to-let usually needs a larger deposit (commonly 25% or more), is often interest-only, and lending is based on a rental stress test rather than income multiples. Most buy-to-let is not FCA-regulated, which changes the protections that apply.
Some lenders still want you to already own your home or meet a minimum income.
It's a business
Rental income is taxable and there are running costs, so a mortgage that passes the stress test is not the same as a profit. Budget for the full picture and get tax advice.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.