What is a Buy to Let Mortgage?

Buy-to-let mortgages are designed for landlords who purchase property to rent out to tenants. Unlike residential mortgages, affordability is based mainly on projected rental income rather than personal income.

• Most lenders require at least a 20%–25% deposit.

• Rental income must usually cover 125%–145% of the mortgage payments at a stress-tested interest rate (often 5.5% or higher for calculations).

Personal Name vs. Limited Company (SPV)

One of the biggest decisions is how to structure ownership:

• Personal Name:

  • Simpler and historically more common.

  • Mortgage market is wider.

  • Rental income taxed as personal income (subject to income tax bands).

• Limited Company (SPV):

  • More tax-efficient for higher-rate taxpayers.

  • Corporation Tax applies instead of personal income tax.

  • Mortgage options are more limited but growing.

  • Potential advantages for inheritance tax and profit extraction.

We assess your personal situation carefully to determine the most appropriate route.

Tax Considerations

Taxation for landlords has become more complex:

• Income Tax:

  • Mortgage interest relief restricted for personal ownership.

  • Full mortgage interest relief still available for limited company structures.

• Stamp Duty:

  • Additional 3% stamp duty surcharge for buy-to-let properties.

• Capital Gains Tax (CGT):

  • Payable on property sale, with different rates depending on ownership structure.

• Inheritance Tax (IHT):

  • Relevant for larger portfolios or long-term estate planning.

We strongly recommend tax advice alongside mortgage planning to optimise your position.

Portfolio Landlords

• If you own 4+ mortgaged buy-to-let properties, you’re classed as a Portfolio Landlord.

• Lenders will assess your entire portfolio, overall debt levels, and rental performance across your properties.

We specialise in helping portfolio landlords navigate lender requirements and structure their growing investments.

Holiday Let & Airbnb Mortgages

Short-term rental properties follow different rules:

• Income calculations based on seasonal occupancy.

• Specialist lenders required.

• Different stress tests compared to standard buy-to-let.

Property Suitability

• EPC (Energy Performance Certificates) standards apply — most properties require EPC rating E or higher, with future tightening to C.

• Property type (flats, HMOs, student lets, new builds) affects lender appetite.

• Location and rental demand influence lender confidence.

Landlord Responsibilities

Beyond the mortgage, landlords need to consider:

• Licensing requirements (may vary by council)

• Safety regulations (gas, electrical, fire safety)

• Tenant rights, legal obligations and changing legislation