Key Takeaways
  • A Buy To Let (BTL) mortgage is designed for property investors to rent out properties, with repayments typically covering only the interest, not the capital loan.
  • Eligibility for a BTL mortgage includes factors like rental coverage, a minimum income threshold, a deposit around 25% of the property’s value, stable employment, age restrictions, and a good credit score.
  • Securing a BTL mortgage involves assessing finances, raising the deposit, choosing the right mortgage, finding a property, and finalising the purchase after property valuation and survey.

Investing in a Buy To Let (BTL) property can be a rewarding venture, both in terms of regular rental income and potential capital growth. But how does one navigate the complex process of securing a BTL mortgage? This guide provides an in-depth exploration of how to secure a BTL mortgage, the criteria, how much you can get, and much more. We’ll also explore why Lendlord, a leading UK BTL mortgage broker, could be your key to unlocking market-leading rates.

Understanding Buy to Let Mortgages

Before diving into the process of securing a BTL mortgage, it’s essential to understand what it entails. A BTL mortgage, unlike a standard residential mortgage, is designed for property investors intending to rent out the property. These mortgages are typically interest-only, meaning you pay off the interest each month, but not the capital loan. At the end of the mortgage term, you fully repay the original loan or take out another mortgage. 


Recommended Guide – Buy to Let Mortgages Explained

Eligibility Criteria for a Buy To Let Mortgage

Securing a BTL mortgage involves meeting specific eligibility criteria set by lenders. The requirements often vary across different lenders, but there are commonalities that you should be aware of:


Rental coverage: The majority of lenders will focus on your BTL property’s ability to cover the monthly mortgage repayments by a factor of 1.25 to 1.5. In other words, if your monthly payment is £500, your rental income will need to be at least £625 to £750.


Income and Affordability: Some lenders require a minimum income threshold of at £25,000.


Deposit: BTL mortgages typically require a larger deposit than standard residential mortgages, usually around 25% of the property’s value.


Employment Status: The majority of lenders require stable employment or a consistent income source. However, there are specialist lenders who cater to self-employed individuals or those with complex income streams.


Age: There are age restrictions, both minimum and maximum, for BTL mortgage applicants. The minimum age is typically 21 to 25, while the maximum age at the end of the mortgage term can range from 70 to 85, depending on the lender.


Credit Score: A good credit record is usually necessary, although some specialist lenders cater to those with adverse credit histories.


Property Type and Location: The property’s type and location can also influence your eligibility for a BTL mortgage. The majority of lenders prefer traditional brick-built properties in prime locations. So if you’re buying an unusual build in a sub-par location, your mortgage application will likely be turned down.

How Much Buy To Let Mortgage Can I Get?

Determining how much you can borrow for a BTL mortgage depends on your personal circumstances, the property, and the lender’s criteria. Lenders usually calculate this based on the potential rental income from the property, which should typically cover 125% to 150% of the mortgage repayments.


You can utilise the following tool to get an estimate of your potential mortgage amount: buy to let mortgage calculator

How Much Deposit Do I Need for a Buy To Let Mortgage?

As previously mentioned, BTL mortgages require a larger deposit in comparison to residential mortgages. Typically, you’ll need to provide at least 25% of the property’s value as a deposit. However, if you have credit issues, are purchasing a non-standard property, or are an inexperienced landlord, lenders may require a higher deposit.

The Key to Successful Investments

Hands down the single most important step that you can take in your property investing journey is learning how to properly analyse deals. A bad property investment leaves you vulnerable to de-appreciation, loss of your hard-earned funds, and worst of all, hair lose caused by all the stress. If you'd prefer to avoid stocking up on Regaine, consider checking out our range of property analysis tools.

How to Secure a Buy to Let Mortgage

Securing a BTL mortgage involves the following process:

  1. Assess Your Finances: Start by evaluating your financial situation. This includes your income, outgoings, and savings to see how much you can afford to borrow and repay. It’s also crucial to check your credit report and rectify any issues if necessary.
  2. Raise the Deposit: Next, start raising the required deposit. This could come from savings, selling assets, or even a gift deposit from a family member. If you’re an experienced investor, you may even consider raising funds via joint ventures.
  3. Choose the Right Mortgage: Decide on the type of mortgage that suits your needs and financial situation. This could be a fixed-rate, standard variable rate, tracker, or a discounted variable mortgage.
  4. Find a Property: Look for a suitable property that meets your investment goals and the lender’s criteria. Consider factors like location, property type, rental yield potential, and resale value.
  5. Apply for the Mortgage: Once everything is in place, you can apply for the mortgage. It’s beneficial to work with a mortgage broker, like Lendlord, who can guide you through the application process, recommend the best deals, and improve your chances of approval. It’s as simple as creating a free account and inputting the properties data.
  6. Property Survey and Valuation: If your application is accepted, the lender will arrange for a property valuation to ensure the property is worth the amount you’re borrowing. They may also conduct a survey to assess the property’s condition.
  7. Mortgage Offer: If the survey and valuation are satisfactory, the lender will give you a formal mortgage offer.
  8. Finalising the Purchase: Finally, your solicitor will handle the legal aspects of the purchase, including transferring funds, registering the property in your name, and paying any necessary taxes.

Remortgaging Your Buy To Let Property

Remortgaging your BTL property can be a strategic move to secure a better mortgage deal, release equity or reduce monthly repayments. However, it’s crucial to consider the costs involved, including early repayment charges on your current mortgage and legal and valuation fees on the new mortgage.

Get Expert Help

Securing a BTL mortgage can be a complex process, making it beneficial to work with a professional mortgage broker. Lendlord is a leading UK BTL mortgage broker offering free services and market-leading rates. They can guide you through the application process, provide expert advice, and help you secure the best mortgage deal for your circumstances.

Final Thoughts

Securing a BTL mortgage requires careful planning, thorough research, and expert guidance. Understanding the process and meeting the lender’s criteria can increase your chances of approval and help you embark on a successful property investment journey. 


And remember, to ease your journey, consider enlisting the help of a trusted broker like Lendlord

Victor Sterling

Victor Sterling

Hi, my name’s Victor - I’ve been investing in property for three years now, with my preferred strategies being buy-to-let, BRR and house flips. My goal with Amateur Landlord is simple - to provide beginners with easy-to-follow resources that simply weren’t around when I started, and to offer these for free and without ads.

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