Put down your deposit
The minimum deposit for a buy-to-let mortgage is typically higher than a standard, residential mortgage. This is usually at least 25% of the property’s value (but can vary between 20–40%).
Buy-to-let mortgages
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What is a buy-to-let mortgage?
A buy-to-let (BTL) mortgage is a mortgage sold specifically for those who buy property as an investment, rather than getting a mortgage for somewhere they want to live themselves.
Buy-to-let mortgages work differently from standard residential mortgages. So, if you’re choosing to rent out your property, lenders will prefer you to finance your purchase with a buy-to-let mortgage.
When you compare buy-to-let mortgages with MoneySuperMarket, we do the hard work for you. We’ll compare mortgage deals and lenders from across the market, so you can find the best rate that suits your needs.
Our expert says…
Stamp duty on the purchases of second homes, buy-to-let residential properties, and companies purchasing residential property, will rise from 3% to 5% on October 31.
For landlords, the increase in stamp duty from 3% to 5% on second homes, buy-to-let properties, and residential properties purchased by companies means higher upfront costs when acquiring new properties. As a result, some landlords might decide against expanding their property portfolios – or mean that getting a good deal on a buy-to-let mortgage is more important than ever.
Kara Gammell Personal Finance & Insurance Expert
How do buy-to-let mortgages work?
Buy-to-let mortgages are a way for existing investors and new landlords to take their first steps into the rental property market. Here’s how a buy-to-let mortgage works:
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Interest-only payments
Most borrowers take out an interest-only mortgage for their chosen property. This way, you’ll pay the interest each month but not the full capital amount.
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Pay back the full amount
At the end of the mortgage term, you’ll repay the capital debt, which is the full amount of the mortgage. Often, borrowers might save into an ISA to repay the capital, or sell the investment property to pay off the debt.
How much will my buy-to-let mortgage cost?
How much your buy-to-let mortgage will cost you will depend on several factors. The main ones are:
Size of your deposit: The bigger deposit you can put down, the smaller the mortgage you'll need to borrow. Lenders will usually ask for 25% of the property’s value, although it can be higher
Interest rate: You’ll only pay back the interest each month, not the full capital amount
Loan term: You’ll pay back the full cost of the mortgage at the end of the loan term
With a buy-to-let mortgage, you’ll only usually pay the interest each month, not the full capital amount. But while this might mean your monthly repayments are cheaper than a standard residential mortgage, you’ll need to consider how you’ll repay the full cost of your mortgage debt at the end of the loan term.
To get an idea of your buy-to-let mortgage eligibility and affordability, our mortgage repayment calculator can be a good place to start. You can work out what your repayments will cost you each month. This will be based on how much you’re borrowing, the interest rate and fees of your mortgage deal, and how long you’ll have to pay it off (the term).
Who is eligible for a buy-to-let mortgage?
While lenders may vary in their eligibility criteria for a buy-to-let mortgage, most will require the following:
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Your age
Most lenders will require you to be 21 or over to apply for a buy-to-let mortgage. Bear in mind that you’ll usually need a good credit score
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Your income
Some lenders will require a minimum income for a buy-to-let mortgage. Usually, the minimum you need to be earning is around £25,000, especially if you’re a first-time landlord
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Deposit
For a buy-to-let mortgage, most lenders will ask for a 25% deposit. But this can vary, as some lenders may ask for a higher amount (sometimes even up to 40%)
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Borrowing history
Lenders will look at your credit history to check you’re a reliable borrower. If you have a history of poor credit, you may want to improve your score first
How big a deposit do I need for a buy-to-let mortgage?
The size of the deposit required for a buy-to-let mortgage in the UK typically ranges from 25% to 40% of the property's value. Factors that can affect the required deposit include your income, creditworthiness, and the lender's criteria.
Buy-to-let mortgage deposits are typically higher than residential mortgage deposits due to the increased risks associated with renting out the property and the complexity involved if the property needs to be repossessed with tenants in place.
What are the interest rates on buy-to-let mortgages?
Interest rates on a buy-to-let mortgage can be influenced by various factors. These include:
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Loan-to-value (LTV) ratio
The bigger proportion of the property you have to pay for through the mortgage (LTV), the riskier the loan. This can result in higher interest rates
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Credit history
Lenders assess your creditworthiness and affordability to determine the risk involved. A poor credit history may lead to higher interest rates
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Changing base rate
Interest rates can be affected by changes in the base rate set by the Bank of England. A rise in the base rate generally leads to higher mortgage rates, while a decrease can result in lower rates
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Fixed or variable rate mortgage
If you have a fixed-rate mortgage, your interest rate remains constant throughout the agreed period. In contrast, a variable rate or tracker mortgage can be impacted by changes in the base rate, causing fluctuations in interest rates
How can I get the best deals on a buy-to-let mortgage?
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Compare from a wider range of deals to find the cheapest rate
Shopping around can help you find the cheapest interest rate. With MoneySuperMarket, we compare deals from across the market to find the right one for you
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Keep an eye on your credit score
Before you apply, check your credit report. Your credit rating can have a big impact on what mortgage rate and deal you’ll be offered. Take steps to improve your score
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Consider what type of mortgage is right for you
A fixed-rate deal can offer you peace of mind, as you’ll know what your monthly repayments will be. But a tracker or variable-rate mortgage could work out cheaper overall
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Be mindful of fees
Note any fees attached to the mortgage as these can affect the overall cost. Is there an early repayment charge if you want to leave the deal before the end of your mortgage term?
What to consider before choosing a buy-to-let mortgage?
Before you go ahead with a buy-to-let mortgage, there are a few things to consider that may affect your finances. These can include:
Tax implications: There are tax implications for buy-to-let investors, both on rental income and when you sell. Depending on how much income you earn through rent, you’ll pay differing rates of income tax. Similarly, when you sell a buy-to-let property, you may have to pay capital gains tax (CGT) on some of the profits.
Rental income: Your property may not always have tenants, so there may be times when the property is unoccupied and rent isn’t paid. You’ll need a financial backup for any such ‘void periods’, so you can continue to repay your mortgage
Loan term: Work out how long you need the initial mortgage agreement to last and what action you’ll take when it ends. If your financial situation changes if might be easy to remortgage and you may have to sell the property
What are the benefits of buy-to-let?
Many investors, including those from overseas, look for buy-to-let properties in the UK. Here are some of the reasons why
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Rental income
Generates a steady stream of revenue from tenants, providing a source of passive income – although the property needs to be properly managed
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Capital appreciation
Property values have increased over time in the UK. While there is no guarantee this will continue, there could be potential for long-term capital gains
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Portfolio diversification
Owning a buy-to-let property can add diversity to your investment portfolio, spreading risk across different asset classes
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Keeps pace with inflation
Property values and rental income can potentially keep pace with inflation, protecting your investment against eroding purchasing power
Unlock better deals by getting on top of your credit score
If you want to keep up with your score, then you can check it with our Credit Score service. The benefits of using Credit Score are:
It’s free: It won’t cost you a penny to find out and monitor your score
Won’t affect your credit rating: We carry out a soft search, which means a hard mark won’t be left on your file when you check your eligibility with us
Offers made for you: We’ll show you the credit card, loan and mortgage deals you’re most likely to be approved for, and the better your score, the more favourable deals you'll be eligible for.
Why compare buy-to-let mortgages with MoneySuperMarket
Find the best deal on buy-to-let properties with MoneySuperMarket:
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It doesn’t take long
You provide us with a few details about you, your financial circumstances, and the property you want
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We search for mortgages
We do the hard work of finding the best mortgage deals and lenders to meet your specific needs
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Continue to broker
Once you’ve found the right provider, you can click through and make your full application
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Learn more about Buy-to-Let properties
What is a buy-to-let mortgage?
A buy-to-let mortgage in the UK is a loan specifically designed for purchasing a property with the intention of renting it out. Unlike residential mortgages, buy-to-let mortgages consider the potential rental income as a key factor in determining eligibility and loan terms.
How to compare the best buy-to-let mortgage rates
Comparing the best buy-to-let mortgage rates using a comparison website, such as MoneySuperMarket, can be a great way to find the right deal for you.
Use a reputable comparison website that specialises in mortgages and has a wide range of lenders listed
Enter your desired loan amount, property value, and loan term to get accurate results
Refine your search by selecting the specific type of buy-to-let mortgage you're interested in, such as fixed or variable rate
Compare interest rates, fees, and any additional features or incentives offered by different lenders
Consider the overall cost, including arrangement fees, valuation fees, and early repayment charges
Read user reviews and ratings to gauge customer satisfaction and service quality
Remember, it's important to carefully review the terms and conditions before making a final decision and consult with a mortgage adviser if necessary.
What is the difference between a buy-to-let mortgage and a residential mortgage?
Unlike most residential mortgages, buy-to-let mortgages are commonly offered on an interest-only basis. This means that your monthly mortgage payments will only cover the interest on your mortgage. Your capital debt, which is the money you’ve borrowed, will not go down unless you choose to make extra payments or take out a repayment mortgage.
You will need to pay the capital debt off in full at the end of your term. You could do this by selling the property. Alternatively, you could keep the property and take out another mortgage.
A buy-to-let mortgage normally requires a larger deposit than a residential mortgage. You may face larger upfront fees and pay a higher rate of interest. You will have to pay more stamp duty for a second property that is not your main home. Some buy-to-let investors choose to set themselves up as limited companies for taxation purposes.
Are mortgage interest rates higher for buy-to-let?
Yes, mortgage interest rates for buy-to-let properties in the UK are generally higher than residential mortgages. This is because lenders perceive buy-to-let investments as riskier, due to factors such as potential rental income fluctuations, the possibility of property vacancies, and the landlord's reliance on tenants for timely rental payments. The higher interest rates help compensate for these additional risks associated with buy-to-let investments.
What fees will I need to pay on a buy-to-let property?
If you are planning on buying a property to let out, there will be other fees that you may need to factor into your budgeting when deciding whether you can afford a mortgage.
These include the following:
Stamp duty, surveyors’ fees, and other charges when buying
Tax on rental income
Building and landlords’ insurance
Rent insurance (optional)
Letting agents’ fees (if you choose to use them)
Maintenance and repairs for the property or possibly ground rent
It’s worth investigating landlord regulations and responsibilities to find out more about the costs involved in buying a property to let.
Can I get a buy-to-let mortgage as a first-time buyer?
Generally, first-time buyers will find it very difficult to take out a buy-to-let mortgage. This is because most mortgage providers require you to own at least one home already. That said, some lenders might consider first-time buyers too.
In this circumstance, you may want to ask for the help of a professional mortgage adviser. They’ll be able to direct you with confidence and present you with the best options based on your needs, situation, and pockets.
Don’t forget that MoneySuperMarket is here to help as well!
What happens at the end of my interest-only buy-to-let mortgage?
Because you only pay interest on a buy-to-let deal, you’ll need to repay the full value of your mortgage at the end of your term. You may be able to extend your mortgage or decide to sell the property.
If you choose to sell, you’ll be able to make a further profit if house prices have risen since you took out your mortgage. However, if house prices fall, you’ll still need to pay off the rest of the mortgage yourself.
How many buy-to-let mortgages can I have?
How many buy-to-let mortgages you can have will depend on your mortgage provider and how much they’re willing to lend to you.
Some providers may only allow you to take out one or two buy-to-let mortgages. Others may allow you to take out as many mortgages as you want to, as long as you have the deposits and the rental income to cover the costs.
If you have four or more buy-to-let mortgages, you’ll be classed as a portfolio landlord.
In what case might a buy-to-let mortgage application be declined?
There is no universal answer to this question, as every application is different. There are many factors why your buy-to-let mortgage application might be rejected.
One of the reasons could be that you’ve reached your borrowing limit and lenders don’t deem it affordable for you to borrow more. If you’re taking out more than one mortgage at a time, your lender may also have a limit on how many deals they can offer you at once.
Ultimately, lenders are unlikely to allow you to borrow what they deem as ‘too much’, as they may be concerned that you will struggle to repay your debt.
What’s more, lenders may want to make sure that your rental income will be about 20%–30% more than your mortgage. If your projected rental earnings are lower than that, then lenders may reject your application.
Another reason for which your buy-to-let application might be declined is if you already own several properties for rent. Specifically, this could be seen as an issue if your existing mortgages have high loan-to-value (LTV) ratios. This is because you already owe lenders a significant amount of money.
Can I live in a house with a buy-to-let mortgage?
No, you can’t. Most buy-to-let mortgages will make clear that the owner is not allowed to live in their buy-to-let property under any circumstances.
This is because buy-to-let mortgages aren’t regulated by the Financial Conduct Authority (FCA). This means that lenders could face fines and punishments if they set up an unregulated mortgage for one of their borrowers’ properties.
If you’re found to be living in your buy-to-let home, even if it’s only for one or two days, you may be breaking the terms and conditions of your contract. In this scenario, you may be asked to immediately repay your loan in full.
Can I change my mortgage to buy-to-let?
If you currently have a residential mortgage but want to change to a buy-to-let mortgage, you’ll need your lender’s approval.
Before you rush into a decision, you’ll need to weigh up if a buy-to-let mortgage is the right option for you, as they differ from residential mortgages. You may also want to consider switching lenders as, by sticking with your current provider, you’ll only be shown their own current mortgage rates.
Comparing mortgages with MoneySuperMarket will show you deals from across the market, helping you find the best buy-to-let mortgage rate for your needs.
How do I get the best buy-to-let remortgage?
Remortgaging your buy-to-let property can help you save money on monthly payments and free up equity, as well as get a better interest rate. Bear in mind that remortgaging can affect your monthly repayments and return on investment.
The best buy-to-let remortgage deal for you depends on several factors, including your credit score, income, the size of your deposit, the type of property you have, who you rent to, and how much equity you have in your rental property.
By comparing deals with MoneySuperMarket, you’ll be able to shop around for the best buy-to-let remortgage rate.
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Reviewed on 11 Dec 2025
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