Standard BTL
Single residential investment property let on an assured shorthold tenancy. The most straightforward BTL product, available from a wide range of lenders.
First-time investors, established landlords and portfolio operators. Standard BTL, HMO, multi-unit blocks, holiday lets and limited company SPV structures. Whole-of-market access and a structure built for the long term.
Important: Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Your property may be repossessed if you do not keep up repayments on your mortgage.
There is no single right answer, the best ownership structure depends on your tax position, your long-term portfolio plans, and your personal circumstances. Here is an overview of both routes.
Rental income is taxed as personal income. Mortgage interest relief is restricted to 20% for higher-rate taxpayers. Simpler to set up and often suited to smaller portfolios or basic-rate taxpayers.
Rental profits are subject to corporation tax. Full mortgage interest is deductible as a business expense. Often considered by higher-rate taxpayers or those building larger portfolios.
Not all lenders offer limited company BTL products. Rates and product ranges can vary. We access specialist lenders who cater for both structures.
The choice of ownership structure has significant tax implications. We recommend speaking to an accountant or tax adviser before making a decision.
BTL mortgage criteria differ from residential lending. Understanding the key factors helps ensure your application is placed with the right lender from the start.
Lenders typically require rental income to cover 125–145% of the monthly mortgage payment, depending on your tax rate and the lender's stress test rate. Higher-rate taxpayers often face stricter coverage requirements.
Most BTL lenders offer up to 75% LTV, meaning a minimum 25% deposit is typically required. Some specialist lenders may offer higher LTV products in certain circumstances.
Standard residential properties are most widely accepted. HMOs, multi-unit blocks, holiday lets, and properties above commercial premises each have their own specialist lender criteria.
Landlords with four or more mortgaged BTL properties are classified as portfolio landlords. This triggers additional lender scrutiny across the entire portfolio, not just the property being purchased.
Lenders work to an Interest Coverage Ratio (ICR) when sizing buy-to-let lending. Plug in the loan amount and stress rate and we'll show you the minimum monthly rent the lender will expect. Indicative only, not advice.
Indicative only. Lender ICR and stress rates vary by product, tax status and property type. A real assessment runs against current criteria for the specific lender we recommend.
We work with specialist lenders across the full range of buy-to-let products.
Single residential investment property let on an assured shorthold tenancy. The most straightforward BTL product, available from a wide range of lenders.
Houses in multiple occupation require a specialist HMO mortgage. We work with lenders who understand HMO licensing, room-by-room rental and the higher yields this structure can produce.
A single freehold building containing multiple self-contained units. MUFB mortgages are a specialist product requiring lenders with appetite for this structure.
Short-term holiday rental properties have different income assessments and different lender criteria. We work with specialist holiday let lenders who understand seasonal income patterns.
SPV or trading company structures for landlords looking to hold property within a corporate wrapper. We have access to lenders who actively support limited company applications.
For landlords with four or more mortgaged properties, specialist portfolio lenders assess your entire portfolio rather than just the single property. We manage this process on your behalf.
Rental income coverage, or the interest coverage ratio (ICR), is the percentage by which your expected rental income must exceed your monthly mortgage payment. Most lenders require rental income to cover at least 125% of the interest payment for basic-rate taxpayers, rising to 145% for higher-rate taxpayers. This is assessed at a stressed interest rate, not the actual product rate.
Yes. Limited company BTL mortgages are available through a growing number of specialist lenders. The company is typically a special purpose vehicle (SPV) set up specifically to hold property. Rates and product ranges differ from personal name lending. We can compare both options for you.
A house in multiple occupation (HMO) is a property rented by three or more unrelated people who share facilities. Properties meeting certain size or occupancy thresholds require a mandatory HMO licence. Standard BTL mortgages typically exclude HMOs, a specialist HMO product is required.
Most BTL lenders require a minimum 25% deposit, equating to a maximum 75% LTV. Some specialist products exist at higher LTVs, but the product range narrows significantly above 75% LTV. Having a larger deposit typically gives access to a wider range of products and more competitive rates.
Yes. When remortgaging a BTL property, the new lender will assess the current rental income (or estimated rental value) against their ICR requirements. If rental income has increased since you took out the original mortgage, this may support a higher loan amount. Your adviser will run the numbers before recommending a lender.
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