Finance your investment property
Whether it’s your first rental or you’re growing a portfolio, find the right buy-to-let mortgage from 50+ specialist lenders in minutes.
Example BTL purchase
How BTL mortgages work
Buy-to-let mortgages are different from regular mortgages. Here’s what you need to know.
It’s based on rent
Lenders look at the expected rental income, not your salary. The rent needs to cover the mortgage payment with room to spare—usually by 125-145%.
Bigger deposits
25% minimumMost BTL lenders require at least 25% deposit. Better rates kick in at 40% or more.
Interest-only common
Many landlords choose interest-only to keep monthly costs low and maximise cash flow. You’ll need a plan to repay the capital at the end.
How rental coverage works
What to budget for
Buy-to-let has some extra costs compared to buying a home. Here’s what you need to know.
Higher stamp duty
Investment properties pay an extra 5% stamp duty on top of normal rates. This is the biggest extra cost when buying a BTL.
Tax on rental income
Rental profit is added to your income and taxed at your normal rate. You can deduct allowable expenses like insurance and repairs.
Solicitor / Conveyancer
Legal fees are similar to residential purchases. They handle contracts, searches, and transferring ownership.
Mortgage fees
BTL mortgage fees can be higher than residential. Sometimes paying a fee gets you a lower rate—we’ll help you compare the true cost.
Survey
A survey checks for problems before you buy. Especially important for older properties or if you’re planning renovations.
Landlord insurance
You’ll need specialist landlord insurance, not standard home insurance. Covers buildings, liability, and often rent guarantee.
Stamp duty examples for BTL
These include the 5% additional property surcharge that applies to buy-to-let and second homes. Rates shown are for England and Northern Ireland—Scotland and Wales have different rates.
Personal name vs limited company
You can buy a rental property in your own name or through a company. Here’s how they compare.
Personal name
Simpler setup, good for starting out
Simple to set up — no company formation or accounts needed
Lower mortgage rates — personal BTL rates are often cheaper
Capital gains allowance — use your annual CGT allowance when selling
Higher tax for higher earners — profits taxed at your income tax rate (up to 45%)
Limited mortgage interest relief — only get 20% tax credit, not full deduction
Limited company (SPV)
Better tax efficiency, especially for growth
Lower tax rate — corporation tax at 25% vs up to 45% income tax
Full mortgage interest relief — deduct all interest as a business expense
Retain profits tax-free — reinvest in more properties without extra tax
Admin and costs — company accounts, filing fees, accountant costs
Slightly higher rates — SPV mortgage rates are typically a bit higher
Not sure which is right for you?
It depends on your tax situation, how many properties you plan to own, and whether you want to reinvest profits. Our advisers can help you work out which structure makes sense—and we compare deals for both.
What can you finance?
Different property types have different lending options. Here’s what’s available.
Standard residential
Houses and flats for single-family letting. The most common type of BTL with the widest choice of lenders and best rates.
HMO (House in Multiple Occupation)
Properties let room-by-room to multiple tenants. Higher yields but needs licensing and specialist lenders.
Multi-unit freehold block
A building with multiple self-contained flats under one title. Finance the whole block as one purchase.
New build
Brand new properties from developers. Some lenders restrict new builds, but many are happy to lend on them.
Holiday lets
Properties let short-term to holidaymakers via Airbnb or similar. Different mortgage products with specific criteria.
Ex-council / ex-local authority
Former council properties now in private ownership. Most lenders are fine with these—just avoid very high-rise blocks.
How to buy a BTL property
From finding a property to getting the keys, here’s what to expect.
Check what you can borrow
Tell us about your income and the type of property you’re looking at. We’ll show you what you could borrow and which lenders will work for you.
Find a property with good rental yield
Look for properties where the rent will comfortably cover the mortgage. Research the local rental market to check achievable rents.
Speak to a BTL specialist
Once you’ve found a property, we’ll review your situation, confirm the rental income works, and recommend the best deal for you.
Application and valuation
We submit your application with the lender. They’ll arrange a valuation to check the property and confirm the expected rent is achievable.
Legal work and completion
Your solicitor handles contracts and searches. Once everything’s done, you’ll exchange and complete—then the property is yours.
Find tenants and start earning
List the property, find tenants (or use a letting agent), and start collecting rent. Don’t forget landlord insurance and any licensing requirements.
Buy-to-let mortgage questions
How much deposit do I need for a BTL mortgage?
Most BTL lenders require at least 25% deposit. So for a £200,000 property, you’d need £50,000. Some specialist lenders offer 20% deposit products, and the best rates usually kick in at 40% deposit or more. This is higher than residential mortgages because lenders see rental properties as slightly higher risk.
Can I get a BTL mortgage if I don’t own my own home?
Yes, though fewer lenders offer this. You’ll typically need a larger deposit (often 25-30%) and meet minimum income requirements. Some lenders specifically cater to people who rent their own home but want to invest in property. We can help you find lenders who accept “tenants wanting to become landlords”.
How do lenders decide how much I can borrow?
It’s mainly based on the expected rental income, not your salary. Lenders check that the rent will cover the mortgage payment by 125-145% (this is called the Interest Coverage Ratio). They also usually require you to have a minimum personal income—often around £25,000—even though it’s the rent that matters most.
Should I buy in my name or through a company?
It depends on your tax situation. Higher-rate taxpayers often benefit from buying through a limited company (SPV) because profits are taxed at corporation tax rates (25%) rather than income tax (up to 45%). Company ownership also lets you deduct mortgage interest in full. The trade-off is extra admin and slightly higher mortgage rates. We can help you compare both options.
What’s the difference between interest-only and repayment?
With interest-only, you only pay the interest each month—the loan amount stays the same. This keeps monthly costs low and maximises cash flow, but you’ll need a plan to repay the capital (usually by selling the property). With repayment, you pay off both interest and capital, so the loan reduces over time. Most BTL landlords choose interest-only for better cash flow.
Can I use rental income from other properties?
Yes—if you already own rental properties, some lenders will count that rental income towards your overall affordability. This is especially useful for portfolio landlords looking to expand. Different lenders have different rules on this, so it’s worth comparing options.
How long does a BTL purchase take?
Similar to residential purchases—typically 8-12 weeks from having an offer accepted to completion. The mortgage application takes a few days, the valuation 1-2 weeks, and legal work (conveyancing) 4-8 weeks. Having your documents ready and responding quickly to requests helps speed things up.
Ready to invest in property?
Compare buy-to-let deals from 50+ specialist lenders. Takes about 2 minutes, won’t affect your credit score.
Compare BTL dealsRepresentative Example (Mortgages)
If you borrow £200,000 over 25 years, initially on a fixed rate for 5 years at 5.25% and for the remaining 20 years on the lender’s standard variable rate of 7.99%, you would make 60 monthly payments of £1,199.12 and 240 monthly payments of £1,393.46. The total amount of credit is £200,000. The total amount payable would be £418,263. The overall cost for comparison is 6.8% APR representative.
Albot is an introducer and technology platform, not a lender and not a mortgage broker. Applications submitted via Albot may be passed to Loan.co.uk Ltd, which provides mortgage advice, carries out suitability assessments, and arranges mortgages with lenders. Loan.co.uk Ltd acts as a mortgage broker, not a lender. Your home may be repossessed if you do not keep up repayments on your mortgage. Buy-to-let mortgages are not regulated by the FCA.