Buy-to-let mortgages: pass the stress test, structure it right
Finance for landlords from £75,000 to £2m per property, in personal name or a limited-company SPV, across 100+ lenders, with indicative terms in 3 to 5 working days and the stress test mapped before you apply.
You want a buy-to-let mortgage that actually completes, at a rate that works, in a structure that doesn’t cost you in tax later. Lenders underwrite it mainly on the rent the property earns, not your salary; most products are interest-only, with maximum LTV at 65% to 75%.
We are a broker, not a lender. As your BTL broker we shop a panel of 100+ lenders rather than push one product, mapping your interest cover ratio (ICR) before submission so you know what passes rather than finding out after a hard credit search. There is no fee to enquire, and our fee model is confirmed upfront before any application, disclosed in writing before you commit. Indicative quotes never touch your file.
Key facts
- 4.5–6.5% p.a. indicative; fixed, tracker and discount options
- Up to 65–75% LTV; ICR stress typically 125% (basic-rate/company) to 145% (higher-rate)
- Personal name or limited-company SPV; indicative terms in 3–5 working days
| Scenario | Indicative rate | LTV |
|---|---|---|
| Standard BTL | 4.5–6.0% p.a. | 75% |
| HMO / multi-unit | 5.0–6.5% p.a. | 70–75% |
| Portfolio landlord | 4.8–6.5% p.a. | 70% |
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Compare buy-to-let mortgage routes by what you need
A BTL mortgage is not one product. Start with the angle that matches your deal.
Whole-of-market buy-to-let broker
Why whole-of-market beats going direct.
Explore ›What is a buy-to-let mortgage
The plain-English guide to the BTL product.
Explore ›Refurbishment finance
Short-term money to buy and improve, then refinance.
Explore ›Commercial mortgages
For mixed-use, semi-commercial and larger investment.
Explore ›How a buy-to-let mortgage works
A buy-to-let mortgage funds a property you let to tenants, not a home you live in. Unlike a residential mortgage, the lender underwrites it mainly on rental income, not your salary. Most products are an interest-only mortgage rather than a repayment mortgage, keeping the monthly mortgage payments lower. Getting a mortgage on a rental differs from buying a home.
You can hold it in your own name or through a limited company. Maximum loan-to-value sits at 65% to 75%, so the deposit for a buy-to-let mortgage runs 25% to 35%. Buy to let mortgage interest rates sit a little above a residential mortgage, indicatively 4.5% to 6.5% a year, because the lender prices in tenant and void risk. Every figure is indicative; the lender confirms on application.
How much you can borrow and the BTL stress test
Borrowing on a BTL mortgage is driven by rental income, not the property value. When you buy a property to let, lenders run an interest cover ratio (ICR) stress test that checks the rent covers the mortgage payment, at a stressed interest rate, before they agree a loan size on the buy to let mortgage.
The standard test asks for rental income to cover 125% of the interest at a notional stress rate around 5.5%, for basic-rate and company borrowers; higher-rate taxpayers are stressed at 145%. On a £187,500 loan stressed at 5.5%, the lender wants rent of at least £1,074 a month to clear 125% ICR. If the rent falls short, a larger deposit or a company structure brings the numbers into line. We map your ICR before submission with a buy to let mortgage calculator, so you know what passes before any hard search.
Personal name or limited company buy-to-let
This is the question most landlords get stuck on, and it is a tax question as much as a finance one.
A buy-to-let mortgage held in personal name is taxed on rental profit at your income tax rate, and mortgage interest relief is restricted to a basic-rate tax credit. Through a special purpose vehicle (SPV) the company pays corporation tax and can usually deduct interest as a business cost. The right answer depends on your tax position and how many rental properties you hold, which is why many landlords now run a btl mortgage through limited companies.
We arrange both structures and place limited companies and SPV cases with lenders who specialise in them. We do not guess the tax answer; seek professional tax advice first.
Buy-to-let mortgage rate options and product types
The types of buy to let products come in a few shapes, and the cheapest headline mortgage deal is not always the best fit. Each type of mortgage, and the right type of buy-to-let mortgage, balances rate, fee and how long you fix.
- Tracker mortgage. A tracker moves with the Bank of England base rate, so the interest rate and the payment can rise with fluctuations in interest rates.
- Fixed rate. A fixed interest rate locks the payment for 2 or 5 years, which protects cashflow and helps a tighter stress test pass.
- Discount. A discount sits below a lender’s standard variable rate for a set term, then reverts at the end of the mortgage term.
Indicative buy to let mortgage rates and buy-to-let rates run 4.5% to 6.5% a year; the buy to let mortgage rate you get depends on LTV, credit profile and rental coverage. We compare the whole panel of buy to let mortgage lenders to find the best buy-to-let mortgage rate and the right mortgage product for your plan, before showing the shortlist for any mortgage application.
Buy to let remortgage and releasing equity
You do not have to be buying to use a BTL mortgage. Many landlords remortgage to release equity from buy to let properties that have grown in value, then recycle that cash to purchase a buy to let next.
On a refinance we lend against existing equity, so you may not need fresh cash if the value is there. The same ICR stress test applies, run through our buy to let calculator. If you already let a former home, the same logic applies once the lender moves you from a consent to let arrangement onto a proper buy-to-let mortgage.
If your plan is buy, refurbish, refinance, rent (BRRR), the refinance is the exit: you buy with short-term refurbishment finance, add value, then refinance at the higher post-works value and pull most of your cash back out. We stress-test that exit before you commit.
Why use a mortgage broker, not a single lender
Going direct to one mortgage lender gets you one decision. Different lenders weigh rental coverage, stress rates, property type and tax structure differently, so a decline from one tells us which lenders to skip and which to target. That is the case for using a mortgage broker, and for weighing your mortgage options across the buy to let market.
As an independent mortgage broker and buy to let broker we compare 100+ lenders that offer buy to let mortgages, run a soft credit check with your consent first so exploring options never marks your file, and package the case the underwriter trusts. As a buy to let mortgage specialist we place company SPV, HMO and a specialist mortgage mainstream branches turn away, and as an expert buy to let mortgage adviser our mortgage experts give expert advice to find the right mortgage, the best mortgage to fit.
This is information, not regulated advice. A qualified mortgage adviser confirms the regulatory position and gives the formal mortgage advice once we agree a route.
The buy-to-let mortgage process, step by step
You do not need paperwork to apply for a buy-to-let mortgage. Tell us the property, the rough value, the loan size and your plan for the rent, and we map the ICR and shortlist lenders first. Because most products are interest-only, the repayments on a mortgage like this stay low while the rent does the work.
Applying for a mortgage starts when we package the file: ID, proof of deposit, recent statements, an asset and liability statement, and rental valuation. The lender assesses the buy-to-let mortgage application, instructs a valuation, underwrites, and produces a mortgage offer. Legals run alongside, and most cases reach a mortgage agreement and complete in 4 to 6 weeks.
Common buy-to-let worries, answered straight
Are BTL mortgages more expensive than residential? +
What if my rental income fails the stress test? +
I have been turned down before. +
When a buy-to-let mortgage fits
Single units, personal or company name.
Refinance against existing value to fund the next buy.
Move a portfolio into a limited company.
Scale without breaching covenants.
Buy, refurbish, refinance, rent, recycling cash.
Higher-yielding lets, specialist lenders.
Buy-to-let mortgage questions, answered
Am I eligible for a buy-to-let mortgage and how much can I borrow? +
Are buy to let mortgages regulated? +
I am a portfolio landlord. Can you help me scale? +
Will getting a quote hurt my credit score? +
Can I get a buy-to-let mortgage without a broker? +
Get indicative buy-to-let mortgage terms in 3 to 5 working days
Tell us the property, the rough value, the loan size and your plan for the rent. We come back with indicative terms from suitable lenders, map the stress test, and show you the shortlist. No fee, no impact on your file.