Buy-to-Let Mortgages

Expert Guides

With a buy-to-let property sector that has seen rental demand grow to a 13-year high and an increase of 4.6% in average rents in the UK over the past year, according to Zoopla’s latest Rental Market Report, there has never been a better time for landlords thinking of investing in the buy-to-let market or adding to their investment portfolio.

There has also been great news when it comes to the number of buy-to-let mortgage products available to landlords with a small deposit or lower level of equity. If you can put down a 15% deposit, there are now almost 30 85% loan-to-value (LTV) buy-to-let products to choose from.

So, with perfect timing and reinvigorated confidence in the investment property market, we’ve got answers to the buy-to-let questions that are asked the most before you make your move to the next step with an application for a buy-to-let mortgage.

Do I qualify for a buy-to-let mortgage?

The borrowing criteria for a buy-to-let mortgage varies from lender to lender, traditionally you would have needed to show earnings of at least £25,000 that aren’t connected to property rental. However, there are now a number of lenders who do not have any income requirement, meaning you can purchase a buy to let property even if you’re not in employment. If you own your own home, that will also stand you in good stead for a buy-to-let mortgage. Whilst minimum deposits of about 25% of your proposed investment property value have traditionally been required by lenders, the increasing numbers of 85% buy-to-let mortgages are showing that the market is broadening.

Do I pay tax on rent from a buy-to-let property?

Yes, your rental income is subject to income tax – you should talk to your accountant about buy-to-let property income if this is to be your first foray into property investment.

Can I live in a property that has a buy-to-let mortgage?

Buy-to-let mortgages are for landlords only, which means you can’t live in your own buy-to-let home. If you want to live in the property, you’ll need to apply for a standard homeowner mortgage.

Can I convert a buy-to-let mortgage to a residential homeowner mortgage?

You should be able to switch your buy-to-let mortgage subject to meeting the new lender’s affordability criteria.

How do I apply for a buy-to-let mortgage?

You first step should be to talk to the experts in buy-to-let mortgages. We have access to the most competitive buy-to-let mortgage products that are currently available. Whether it’s your first buy-to-let investment or you’re expanding your investment property portfolio, the advisers at Charters Financial Services will find the right product to suit your purchase.

Need more information about buy-to-let mortgages?

Call Charters Financial Services on 03454 500200 to get your buy-to-let mortgage application off to the best start or, for more information read our expert guides here (

Buy to Let mortgages: What's the 411?

A Buy to Let Mortgage is for when you buy a property to rent out to the public. The are very popular with investors as a way of adding to their portfolio. We have asked Stephanie Phillips-James, one of expert advisers, to break them down.

What is the criteria for being a landlord?

The majority of lenders will require that you already own your own home. In addition, many require that you earn at least £25,000 from a source not related to letting but this does differ between lenders. A minimum deposit of normally around 25% of the property value is also required by most lenders.

Can I use my rental income as a form of income to purchase another property?

It often depends on whether you currently have a mortgage to pay on your existing buy-to-let property. If you do, then ultimately a lender will see this as debt that needs to be taken into consideration. By speaking to a mortgage adviser, they will look at your individual circumstances and advise on what your options are.

Can I raise capital on my own home to put down as a deposit on my buy-to-let property?

This is possible but it’s best to speak to a mortgage adviser who can look at your individual circumstance and run through your options.

Will I be taxed on my rental income?

As a landlord, you would be taxed on the income you make through the rent payments in line with your personal income tax liabilities. We recommend speaking to an accountant before purchasing your first property.

What is a House in Multiple Occupancy (HMO)?

A property is classed as a HMO if there are more than three tenants living there who aren’t members of the same family. Another indication is if there are shared facilities i.e. kitchen, bathroom, toilet etc.

Your choice of lenders may be limited if you’re renting out a HMO, but your mortgage adviser will be able to go through this with you. Councils can also have individual rules around HMO, so if this is something you’re considering, we recommend you speak to your local council.


If you’d like to know more about Buy to Let mortgages, click here or read our expert guide.

Or feel free to get in touch! Click here and complete this short form about yourself - we’ll be in touch very shortly. With mortgage brokers in Winchester, Southampton, Farnham, Bishops Waltham, Alton, Chandlers Ford, Alresford, Romsey and Park Gate, you are never too far from mortgage advice.

Your home may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.

Top tips for Buy-to-Let investors

If you’re thinking of taking out a buy-to-let mortgage product, we’ve put together our top tips that will help you make the right decision when it comes to buying an investment property.

Buy-to-let top tips:

Do your homework

A buy-to-let mortgage is a great way for landlords to secure a rental property investment, but you need to be sure it’s the best use of your money. Do your research and compare how your money might perform if you invested it elsewhere. Remember that a buy-to-let investment will mean tying up your capital in a property that might fall value.

Location, location, location

Just because a property is in a good location, it doesn’t follow that it’s the best place for your buy-to-let investment. You’re looking for an area that people will want to live in for all sorts of reasons.

Students, young families and commuters all have different needs so if you can match their requirements with a property that you can afford, you’ll have a better chance of finding a tenant that will make your investment work harder for you.

Do your sums

Research the properties on sale in the area you’ve decided on and explore the rent that you’re likely to achieve each month. Factor in insurance premiums and maintenance cost and remember that if your property is empty for any reason, you’ll still need to make your buy-to-let mortgage repayments.

Landlord obligations

You’ll need to decide whether you’re going to be a hands-on landlord or will appoint a property management agent to carry out work if problems arise.

If you opt to manage the rental property yourself, be prepared to deal with problems that arise promptly – and that could mean weekends and evenings too. An agent will charge you a management fee, regardless of whether the property is occupied or empty, but they should have a good network of trades to jump into action if something goes wrong at your property.

Talk to a specialist buy-to-let mortgage adviser

Buy-to-let mortgages can be complex and a more expensive option than a traditional residential mortgage so it’s vital that you get the best advice you can from buy-to-let mortgage specialists.

If you’re considering a buy-to-let mortgage for a property investment, talk to our team of expert mortgage advisers first to discover the most suitable mortgage products for your purchase. Call us on 08454 500200 and we will be able to help.

Wanted to get a re-mortgage to, hopefully, reduce monthly payments. Spoke to Rob who went through my options and explained everything clearly, very helpful and knows what he's doing. Once things were in place, I went with Rob's recommendation, I was then in contact with Cara to go through the paperwork side of things. Cara is always there at the end of the phone or e-mail and very quick to help. Due to the current lockdown things have slowed down, my end not being able to get things signed, and Cara has been in touch ensuring that when things ease up we'll be ready to go. An excellent team, very helpful and knowledgeable. Highly recommended.

Darryl W

May 2020

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