Buy To Let Mortgages

Last updated: 3rd December 2025

What are Buy to Let Mortgages?

A buy to let mortgage is designed for properties that you intend to rent out rather than live in yourself. While the structure is similar to a standard mortgage, lenders assess buy to let differently, focusing heavily on the rental income the property can achieve.

Key differences compared to a residential mortgage include:

• Larger deposits – typically from 20%–25% or more.
• Rental income-based lending – lenders look at expected rent, not just your personal income.
• Different tax and regulatory considerations for landlords.

Buy to let mortgages are commonly used for:

• Long-term single lets
• Student properties
• Flats and houses in busy rental areas
• Specialist properties such as HMOs (where multiple tenants share one property)

Who Can Apply for Buy to Let Mortgages?

You don’t have to be an experienced investor to access buy to let mortgages. Lenders will look at your overall situation, which may include:

• First-time landlords – buying your first rental property.
• Experienced landlords – growing or remortgaging an existing portfolio.
• Limited company landlords – using a special purpose vehicle (SPV) company.
• Self-employed or employed applicants – with or without other properties.

Criteria vary between lenders but usually involve:

• A minimum personal income (some lenders require this, others don’t).
• A good credit history.
• A suitable deposit.
• Rental income meeting the lender’s stress test (usually a percentage above the mortgage payment).

At Future Interests, we’ll help you understand which lenders are likely to accept your application and which type of buy to let mortgage is most appropriate for your circumstances.

How Do Buy to Let Mortgages Work?

Deposit & Loan-to-Value Requirements

– Most buy to let mortgages require a larger deposit than standard residential loans. Typically, this starts from around 20%–25%, with some lenders asking for more depending on the property type or your experience as a landlord.

The lower your loan-to-value (LTV), the more competitive your interest rate is likely to be.

Rental Income Stress Tests

Rather than focusing only on your personal income, lenders assess whether the rental income from the property will comfortably cover the mortgage payments.

They’ll use a rental coverage ratio – for example:

• Rent must be 125%–145% of the monthly mortgage payment,
• Calculated at a notional or “stress” interest rate the lender sets.

We’ll help you work through these numbers so you know what rent you need to achieve and which properties are likely to fit your target rental yield.

Personal Name vs Limited Company Buy to Let

Some landlords choose to buy properties in their personal name, while others use a limited company structure (often an SPV). Each approach has different tax, affordability and lender implications.

We don’t give tax advice, but we can explain how different lenders treat personal vs limited company borrowing and work alongside your accountant if needed.

Interest-Only vs Capital Repayment

Many landlords choose interest-only buy to let mortgages. This keeps monthly payments lower and can improve cash flow, with the loan repaid when the property is sold or remortgaged.

Others prefer capital repayment, gradually reducing the balance over time. The right choice will depend on your goals and investment strategy – something we’ll discuss with you as part of our advice.

Types of Buy to Let Mortgages

At Future Interests, we advise on a wide range of buy to let mortgage options, including:

• Standard buy to let – for single-let rental properties.
• First-time landlord mortgages – tailored for those entering the market for the first time.
• Limited company buy to let – for landlords investing through a company structure.
• HMO mortgages – for Houses in Multiple Occupation with several tenants.
• Buy to let remortgages – switching to a better deal or raising capital for further investment.
• Let-to-buy mortgages – when you’re letting out your current home to buy a new one to live in.

Our role is to match your plans – whether that’s long-term income, capital growth, or building a larger portfolio – with the most suitable mortgage structure and lender.

Benefits of Using a Mortgage Broker for Buy to Let Mortgages

Working with a buy to let mortgage broker like Future Interests can save you time, money and stress. Here’s how:

• Whole-of-market access – we look beyond just the high street to find competitive buy to let mortgages.
• Specialist lender knowledge – we know which lenders will consider your situation, from first-time landlords to complex portfolios.
• Help with affordability & rental calculations – we’ll guide you through stress tests, coverage ratios and projected yields.
• Support for complex income – including self-employed, contractors, and company directors.
• End-to-end support – from initial enquiry to completion, dealing with lenders, agents and solicitors along the way.

Why Choose Future Interests for Buy to Let Mortgages?

Choosing the right partner is just as important as choosing the right property. At Future Interests, we offer:

• Over 30 years’ experience in the property and mortgage industry.
• In-depth understanding of the Kent rental market, including areas such as Herne Bay, Whitstable, Faversham, Margate and beyond.
• Support for both new and experienced landlords, including limited company borrowing.
• A friendly, straightforward approach, explaining everything clearly and without jargon.
• Flexible appointments – in our office, over the phone, via video call, or in the comfort of your own home, including evenings and weekends.

We take the time to understand your investment plans and work with you to put the right mortgage structure in place to support them.

Contact Future Interests – Your Local Buy to Let Mortgage Specialists

Whether you’re taking your first step into property investment or looking to build an existing portfolio, getting the right buy to let mortgage in place is crucial.

At Future Interests, we provide tailored, impartial advice to help you make informed decisions and maximise the potential of your investment.

Get in touch with Future Interests today to discuss your buy to let plans and find out how we can help you secure the right mortgage for your next property.