Buy-to-let mortgages

A buy-to-let mortgage is a loan for a property you plan to rent out. Lenders usually ask for a larger deposit than for a home you live in, and base the loan mainly on the expected rent.

Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.

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Part 1

Can I get a buy-to-let mortgage?

Lenders look at the rent the property is expected to earn as well as at you.

The deposit

Lenders usually ask for a larger deposit than for a home you live in.

The amount depends on the lender and the property. A larger deposit can open up more deals.

Rental cover

Most lenders test whether the expected rent comfortably covers the mortgage interest.

Each lender sets its own test and the interest rate it uses for it, so the same property can qualify with one lender and not another. Some lenders also look at your personal income.

What lenders usually look at

1The size of your deposit.
2The rent the property is expected to earn, often from the valuer's rental assessment.
3Your income and credit history.
4Whether you already own property or have been a landlord before.
5The type of property. Some, such as houses in multiple occupation, may need a specialist lender.

Part 2

What will it cost?

Buy-to-let has costs a home you live in does not, so budget for the ongoing costs as well as the purchase.

Deposit

Usually larger than for a home you live in.

Property purchase tax

Buying an additional property usually means a higher rate. In England and Northern Ireland that is an extra 5% on top of standard rates. Stamp duty calculator.

Mortgage fees

Arrangement fees can be higher on buy-to-let deals. Compare the overall cost.

Legal fees and survey

As with any purchase, budget for a conveyancer and a survey.

Running costs

Letting and management fees, insurance, repairs, safety checks and periods with no tenant.

Tax on rental income

Rental income is taxable. Check the current rules on GOV.UK or with a tax adviser.

Worked example: stamp duty on a £250,000 purchase in England

If it were your only home	£2,500
As an additional property (buy-to-let)	£15,000

The additional property rate adds 5% of the price on top of the standard rates. For illustration only. Stamp Duty Land Tax rates for England and Northern Ireland, checked against GOV.UK in October 2026. Scotland and Wales have their own taxes. Work out your own stamp duty.

Work out the stamp duty on your purchase

Stamp Duty Calculator

Calculate how much stamp duty you'll need to pay on your property purchase

Property Purchase Price (£)

What type of purchase is this?

First-time buyer

Purchasing a home (moving/upgrading)

Second home or additional property

First-Time Buyer Relief:

If you're a first-time buyer purchasing a property for £500,000 or less, you may be eligible for relief:

No stamp duty on properties up to £300,000
5% on the portion from £300,001 to £500,000

Above £500,000 the relief does not apply and standard rates are charged on the whole price.

Additional Property Surcharge:

If you're buying an additional property (and will own more than one residential property), you'll usually pay an extra 5% on top of standard stamp duty rates on the entire purchase price. Buyers who are not UK residents may pay a further 2%, which this calculator does not include.

*This calculator uses Stamp Duty Land Tax rates for England and Northern Ireland, checked against GOV.UK in October 2026. Different taxes and rates apply in Scotland and Wales. Always check the current rates on GOV.UK.

Part 3

How does it work?

The steps for buying a property to let, from working out the numbers to finding a tenant.

Work out the numbers. Expected rent, running costs, tax and allowance for periods with no tenant.
Speak to a mortgage adviser. An adviser explains which lenders' criteria and rental tests your plans are likely to meet.
Get an agreement in principle. A lender's initial indication of how much it might lend. It is not a formal offer.
Find a property and make an offer. Appoint a conveyancer before you make an offer.
Valuation and rental assessment. The lender values the property and assesses the rent it could earn.
Mortgage offer and legal work. Your conveyancer handles the purchase through to exchange and completion.
Let the property. Before a tenant moves in, check your legal duties as a landlord, such as safety certificates and protecting the tenant's deposit.

What to have ready

Proof of identity and proof of address
Proof of your income
Recent bank statements
Evidence of where your deposit has come from
Details of any other properties and mortgages you have

Common mistakes to avoid

Underestimating running costs and periods with no tenant.
Making an offer before checking the rent is likely to meet a lender's rental test.
Forgetting about tax on rental income and the higher rate of stamp duty.
Letting a property before meeting your legal duties as a landlord.
Assuming the protections of a regulated mortgage apply. Most buy-to-let mortgages are not regulated.

Part 4

Why speak to an adviser?

Free: the adviser has agreed not to charge you for advice
FCA-regulated, and on the Financial Services Register
Searches the whole of the market, not tied to any one lender
Knows which lenders' rental tests and criteria fit your plans
Handles the application through to completion
Contacts you within 24 hours

Find my adviser

I was very impressed with the service I received. I needed two buy to let mortgages and Kaylan Barge was incredibly helpful and efficient. I am 66 so getting a mortgage was proving a little challenging until I engaged his services. I now have both mortgages in place and I am very pleased. Highly recommend this service.

Simon D.Read on Google

Questions landlords ask

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

Lenders usually ask for a larger deposit than for a home you live in. The amount depends on the lender and the property.

How do lenders decide how much to lend on a buy-to-let?

They mainly look at the rent the property is expected to earn. Many use a rental cover test that compares the rent with the mortgage interest, and each lender sets its own test.

Do I pay more stamp duty on a buy-to-let?

Buying an additional residential property in England or Northern Ireland usually means paying an extra 5% on top of the standard Stamp Duty Land Tax rates. Scotland and Wales have their own rules, so check the current rates on GOV.UK.

Is rental income taxed?

Yes, rental income is taxable. Check the current rules on GOV.UK or with a tax adviser, because tax treatment depends on your circumstances.

Are buy-to-let mortgages regulated by the FCA?

Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Some are, for example where you or a close family member intend to live in the property, so ask an adviser which applies to you.

Your home may be repossessed if you do not keep up repayments on your mortgage. The information on this page is general and is not personal advice. mortgageadviceuk.com is an independent marketing website which acts solely as an introducer to companies who provide mortgage advice.

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