Buy-to-Let Mortgages

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Buy-to-let mortgages are loans for landlords buying or refinancing property to rent out. This guide covers how buy-to-let mortgages work in the UK, who can get one, how much deposit you need, how much you can borrow and what it all costs. Whether you are a first-time landlord, a portfolio investor or buying through a limited company, you can then source buy-to-let mortgages online with Dynesourcer and have a specialist broker check your case before it reaches the lender.

Last reviewed: 7 October 2026

What is a buy-to-let mortgage?

A buy-to-let mortgage, often shortened to BTL mortgage and sometimes called a landlord mortgage, is a loan for buying or refinancing a property that you rent out to tenants rather than live in yourself. You cannot normally let a property on a standard residential mortgage, so landlords need a product designed for the purpose.

Buy-to-let mortgages differ from residential mortgages in three main ways: the deposit is larger, the amount you can borrow is based mainly on the rent rather than your salary, and most are taken on an interest-only basis.

How do buy-to-let mortgages work?

Most buy-to-let mortgages are interest-only. Your monthly payment covers the interest, and the amount you borrowed stays the same until the end of the term, when it is repaid by selling the property, remortgaging or using other funds. This keeps monthly costs down and improves rental cash flow. Repayment buy-to-let mortgages are also available if you want to clear the debt over time.

As with residential lending, you choose an initial deal, usually a two-year or five-year fixed rate or a tracker. When it ends, the mortgage moves to the lender's revert rate, and most landlords remortgage at that point. Our guide to buy-to-let mortgage rates explains how pricing works and how to compare deals.

Who can get a buy-to-let mortgage?

Criteria vary between lenders, but most look at the following:

Age. Usually 21 or over, with a maximum age at the end of the term.

Deposit. Typically at least 25% of the property value.

Rental income. The expected rent must pass the lender's stress test.

Personal income. Some lenders ask for a minimum income, often around £25,000 a year; others have no minimum.

Credit history. A clean record gives the widest choice, though specialist lenders consider adverse credit.

Experience. Some lenders prefer existing landlords or homeowners. Others accept first-time landlords and, less commonly, first-time buyers.

Dynesourcer filters by these criteria, so the buy-to-let mortgages you see are ones your case fits.

How much deposit do you need for a buy-to-let mortgage?

Most lenders require a deposit of at least 25%, which is a 75% loan-to-value (LTV) mortgage. A smaller number of lenders go to 80% LTV, at higher rates. The lowest rates are usually available at 60% to 65% LTV.

Remember that the deposit is not your only upfront cost. Stamp duty, fees and a reserve for repairs and void periods all need to come from your own funds.

How much can you borrow?

Buy-to-let borrowing is driven by the rent. Lenders use an interest cover ratio (ICR): the rent must cover the mortgage interest by a set margin, typically 125% for basic-rate taxpayers and limited companies and up to 145% for higher-rate taxpayers, calculated at a stressed interest rate.

For example, on a £150,000 interest-only loan stress-tested at 5.5%, the monthly interest is £687.50. At 125% cover you would need rent of about £859 a month; at 145% cover, about £997 a month. Each lender sets its own stress rate and cover ratio, so the maximum loan differs from one lender to the next.

Read our buy-to-let mortgage calculator guide for more on how the figures are worked out.

Buy-to-let mortgage calculator

Work out your own numbers before you apply. Enter the property value, loan amount, expected rent and interest rate into the buy-to-let mortgage calculator to see your monthly payment, whether the rent passes a typical stress test, and what the deal costs once fees are included.

Open the buy-to-let mortgage calculator

Types of buy-to-let mortgage

Limited company buy-to-let mortgages

For landlords buying through a special purpose vehicle (SPV) or trading company. Popular with higher-rate taxpayers because a company can deduct mortgage interest as a business expense.

Buy-to-Let Mortgages for Limited Companies Explained (2026)

HMO mortgages

For houses in multiple occupation, where three or more tenants from different households share facilities. Lenders look at licensing, room sizes and landlord experience.

Houses in Multiple Occupation (HMOs): Are They Worth It in 2026?

Multi-unit freehold block (MUFB) mortgages

For a single freehold containing several self-contained flats. Fewer lenders offer these, and valuation is more specialist.

Portfolio landlord mortgages

If you have four or more mortgaged buy-to-let properties, lenders treat you as a portfolio landlord and assess your whole portfolio, not just the property being financed.

How to Build a Buy-to-Let Portfolio (UK 2026 Strategy Guide)

First-time landlord mortgages

For borrowers with no previous letting experience. The choice of lenders is narrower, but products are widely available.

Can You Get a Buy-to-Let Mortgage Without Owning Your Own Home?

Buy-to-let remortgages

For switching to a new deal when your current rate ends, or releasing equity to fund your next purchase.

Remortgaging Buy-to-Let Property in the UK: Key Considerations

How much does a buy-to-let mortgage cost?

Beyond the monthly interest, budget for:

Stamp duty. Buy-to-let and additional properties in England and Northern Ireland attract a 5% surcharge on top of standard Stamp Duty Land Tax rates. Scotland and Wales have their own equivalent taxes.
Product and arrangement fees. Often a fixed amount or a percentage of the loan, and sometimes added to the mortgage.
Valuation and legal fees. Legal costs are usually higher for limited company purchases.
Broker fee. Sourcing and enquiring on Dynesourcer is free. A broker fee applies if you proceed to a full application, and you will be told the amount before you commit.
Running costs. Landlord insurance, letting agent fees, maintenance, safety certificates and periods without a tenant.
Tax. Rental profit is taxable. Individual landlords receive a 20% tax credit on mortgage interest rather than deducting it in full, while companies pay corporation tax on profits after finance costs.

This is general information, not tax advice. Speak to a qualified accountant about your own position.

Buy-to-let mortgage rates

The rate you pay depends mostly on your loan-to-value, the property type, whether you borrow personally or through a limited company, and the fee you are willing to pay. The lowest headline rate is not always the cheapest deal once fees are included. Our buy-to-let mortgage rates guide explains fixed and tracker rates, LTV bands and how to compare deals on true cost.

Are buy-to-let mortgages regulated?

Most buy-to-let mortgages are treated as business lending and are not regulated by the Financial Conduct Authority. The exception is a consumer buy-to-let mortgage, which applies in situations such as letting to a close family member or letting a property you have lived in or inherited rather than bought as an investment. If you think this applies to you, tell your broker at the start, as not every lender offers regulated buy-to-let products.

How to get a buy-to-let mortgage with Dynesourcer

1
Enter your requirements. Property value, loan amount, expected rent, property type and borrower structure.
2
Compare matched options. See the buy-to-let mortgages you are eligible for and compare rates, fees and true cost.
3
Enquire online for free. Shortlist the options you prefer and submit an enquiry with no obligation.
4
A broker checks and submits your case. Dynamic Commercial Finance completes a fact-find, confirms the mortgage fits and submits the full application to the lender.

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Buy-to-let mortgage FAQs

Can I get a buy-to-let mortgage as a first-time buyer?

It is possible, but fewer lenders offer it and criteria are stricter, because you have no track record as a homeowner or a landlord. Expect a smaller choice and closer scrutiny of your income.

Can I live in a property with a buy-to-let mortgage?

No. Living in the property breaches the mortgage terms, and the lender can demand repayment. If your circumstances change and you want to move in, speak to your lender about switching to a residential mortgage.

How many buy-to-let mortgages can I have?

There is no legal limit. Each lender sets its own cap on the number of properties or total borrowing it will allow. Once you have four or more mortgaged buy-to-let properties you are classed as a portfolio landlord and face more detailed underwriting.

Can I change my residential mortgage to a buy-to-let?

Yes, either by asking your current lender for consent to let, which is usually temporary, or by remortgaging onto a buy-to-let mortgage. You will need to meet buy-to-let criteria, including the rental stress test, and may face early repayment charges if you are mid-deal.

Do I need a minimum income for a buy-to-let mortgage?

Some lenders require a minimum personal income, commonly around £25,000 a year, while others have no minimum and rely on the rental income alone. If the rent falls short, some lenders will take your personal income into account through "top slicing".

Is it better to buy through a limited company?

It can be more tax-efficient for higher-rate taxpayers, because a company can deduct mortgage interest in full. It also brings extra costs, administration and often slightly higher rates, and transferring existing properties into a company can trigger stamp duty and capital gains tax. Take advice from an accountant before deciding.

Can I get a buy-to-let mortgage with bad credit?

Yes, in many cases. Specialist lenders consider missed payments, defaults and county court judgments depending on how recent and how large they are. You will usually need a bigger deposit and pay a higher rate.

How long does a buy-to-let mortgage application take?

It varies by lender and case. A straightforward application can reach offer in a few weeks; limited company, HMO and portfolio cases usually take longer because of extra legal and underwriting work.

Do the Renters' Rights Act changes affect buy-to-let mortgages?

The Act, in force in England from 1 May 2026, changes how tenancies and evictions work rather than how mortgages work. Lenders have updated their tenancy criteria to reflect it, so check that the tenancy you plan to grant is acceptable to your chosen lender.