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Buy-to-let mortgages
Whether you’re thinking of becoming a first-time landlord or you already have an established property portfolio, getting the right buy-to-let mortgage rate is really important.
Use an expert comparison call with our broker partner, Mojo Mortgages, to compare deals from across the market in April 2025 to find the best one for you.
What is a buy-to-let mortgage?
Buy-to-let (BTL) mortgages are used to purchase property that you plan to rent out to tenants for profit.
According to recent HMRC data, the average unincorporated landlord earns around £17,000 per year in rental income.
Key differences between buy-to-let and residential mortgages:
Bigger deposit. Expect to pay 20-40%, with most lenders requiring at least 25%.
Rental-based borrowing. The amount you can borrow is largely based on potential rental income (or rental yield), though some lenders may factor in your personal income too.
Additional costs. You’ll need to consider a variety of extra costs, including higher interest rates, arrangement fees, Buildings and Landlord insurance, income tax and Stamp Duty
Property usage rules. You can’t live in the property yourself, even during renovations. A property bought using a buy-to-let mortgage is strictly for tenants.
Less regulation. Most buy-to-let mortgages are not regulated by the Financial Conduct Authority (FCA), unless they fall under certain regulated categories.
How does a buy-to-let mortgage work?
A buy-to-let mortgage allows you to borrow money in order to buy a property that you’ll rent out. Like a residential mortgage, you’ll need to put down a deposit, though this usually needs to be higher for a BTL mortgage (around 25% of the property’s value as a minimum).
There are two main buy-to-let mortgage options: interest-only and repayment. The vast majority of buy-to-let mortgages - thought to be as high as 82% - are on interest-only terms.
Interest-only mortgages
With interest-only mortgages, your payments will only cover the interest, not the loan itself. This keeps monthly payments lower but, at the end of the mortgage term, you’ll still owe the full amount you borrowed and this will need to be repaid in one final lump sum.
Lenders will expect you to have a plan in place for this when you take out the mortgage, which may involve selling the property. Be aware: if the property value drops, your sale might not necessarily cover what you have borrowed. A back up plan is always a good idea, no matter how you plan to repay the capital.
Repayment mortgages
Repayment mortgages are less common but involve paying both the loan amount and the interest in monthly instalments. This usually results in higher monthly repayments, though one of the biggest advantages of a repayment mortgage is you’ll own the property outright at the end of the deal.
Once you’ve decided whether to choose interest-only or repayment, you now need to choose which mortgage type is best for you:
Fixed rate: Your interest rate and monthly repayments will stay the same until your deal ends, at which point you can either remortgage or move onto the lender’s standard variable rate.
Variable rate: Your interest rate can change over time, which may affect your monthly payments. The three main types of variable-rate mortgages are tracker mortgages, discount-rate mortgages and standard variable rate mortgages.
Compare buy-to-let mortgages
Work with an experienced mortgage broker to compare BTL mortgages across a wide range of lenders. Find the best deal for your circumstances that will help to maximise your profitability.
Best buy-to-let mortgage rates
Getting the best buy-to-let mortgage deal for your circumstances will depend on a number of different factors, including:
Your deposit amount. The best buy-to-let mortgage rates will be available to those with the lowest loan-to-value (LTV), which is the largest deposit compared to the property value.
Your chosen property. Lenders prefer properties with strong rental yields and in a high demand area where higher rents can be charged. Remember that not all BTL lenders support all types of property, so ensure your property plans match the lender’s criteria before applying
Your experience. Lenders may view you as less of a risk if you have a history of owning successful buy-to-let properties. That’s why it can sometimes be more difficult for first-time buyers to get a BTL mortgage.
Market conditions. Even the best BTL mortgage rates available today are currently higher than those seen in the previous decade, so you might expect less competitive deals with remortgaging a buy-to-let property
The type of mortgage you choose. For example, variable-rate mortgage options (such as a tracker mortgage) can be cheaper than a fixed-rate mortgage at the outset.
Speaking to a whole-of-market mortgage broker can help you compare your options and find the best deal for you.
Repayment buy-to-let mortgage rates
The table below shows fixed buy-to-let mortgage deals on a repayment basis, which mean you pay the interest plus a bit of the loan amount each month.
Your property may be repossessed if you do not keep up with your mortgage repayments.
- 2 years
- Fixed rate
- Monthly repayment£ 817.80
- Loan to value60 %
- Initial interest rate3.24 %
- Variable rate8.49 %
- APRC8%
- Product fees£ 5,490
Representative example:Repayment mortgage of £168,000.00 over 25 years, representative APRC 8%. Repayments: 25 months of £817.80 at 3.24% (fixed), then 275 months of £1,310.62 at 8.49% (variable). Total amount payable £380,865.50. Early repayment charges apply until 31-May-2027. Arrangement, mortgage discharge, valuation and CHAPS fees total £5490.
- 2 years
- Fixed rate
- Monthly repayment£ 973.88
- Loan to value70 %
- Initial interest rate3.34 %
- Variable rate7.6 %
- APRC7.6%
- Product fees£ 10,364
Representative example:Repayment mortgage of £196,000.00 over 25 years, representative APRC 7.6%. Repayments: 24 months of £973.88 at 3.34% (fixed), then 276 months of £1,442.65 at 7.6% (variable). Total amount payable £421,544.52. Early repayment charges apply until 2 years. Arrangement, mortgage discharge, valuation and CHAPS fees total £10364. Legal fees £195.
- 2 years
- Fixed rate
- Monthly repayment£ 1,262.93
- Loan to value80 %
- Initial interest rate4.64 %
- Variable rate7.5 %
- APRC7.7%
- Product fees£ 9,584
Representative example:Repayment mortgage of £224,000.00 over 25 years, representative APRC 7.7%. Repayments: 24 months of £1,262.93 at 4.64% (fixed), then 276 months of £1,629.69 at 7.5% (variable). Total amount payable £480,104.76. Early repayment charges apply until 2 years. Arrangement, mortgage discharge, valuation and CHAPS fees total £9584.
The above fixed rates are provided by Mojo Mortgages and updated every 12 hours. THEY MAY NOT BE AVAILABLE WHEN YOU'RE READY TO SUBMIT AN APPLICATION.
Interest-only buy-to-let mortgage rates
This table below shows fixed buy-to-let mortgage deals on an interest-only basis, which means you only pay the interest each month, and the total loan is repaid at the end of the mortgage.
Your property may be repossessed if you do not keep up with your mortgage repayments.
- 2 years
- Fixed rate
- Monthly repayment£ 453.60
- Loan to value60 %
- Initial interest rate3.24 %
- Variable rate8.49 %
- APRC8%
- Product fees£ 5,490
Representative example:Interest only mortgage of £168,000.00 over 25 years, representative APRC 8%. Repayments: 25 months of £453.60 at 3.24% (fixed), then 275 months of £1,188.60 at 8.49% (variable). Total amount payable £338,205.00. Early repayment charges apply until 31-May-2027. Arrangement, mortgage discharge, valuation and CHAPS fees total £5490.
- 2 years
- Fixed rate
- Monthly repayment£ 545.53
- Loan to value70 %
- Initial interest rate3.34 %
- Variable rate7.6 %
- APRC7.6%
- Product fees£ 10,364
Representative example:Interest only mortgage of £196,000.00 over 25 years, representative APRC 7.6%. Repayments: 24 months of £545.53 at 3.34% (fixed), then 276 months of £1,241.33 at 7.6% (variable). Total amount payable £355,699.80. Early repayment charges apply until 2 years. Arrangement, mortgage discharge, valuation and CHAPS fees total £10364. Legal fees £195.
- 2 years
- Fixed rate
- Monthly repayment£ 866.13
- Loan to value80 %
- Initial interest rate4.64 %
- Variable rate7.5 %
- APRC7.7%
- Product fees£ 9,584
Representative example:Interest only mortgage of £224,000.00 over 25 years, representative APRC 7.7%. Repayments: 24 months of £866.13 at 4.64% (fixed), then 276 months of £1,400.00 at 7.5% (variable). Total amount payable £407,187.12. Early repayment charges apply until 2 years. Arrangement, mortgage discharge, valuation and CHAPS fees total £9584.
The above fixed rates are provided by Mojo Mortgages and updated every 12 hours. THEY MAY NOT BE AVAILABLE WHEN YOU'RE READY TO SUBMIT AN APPLICATION.
Don’t forget to factor in fees when comparing mortgages. Fee-free deals might seem cheaper, but they often come with higher rates. On the flip side, paying fees for a slightly lower rate may not make sense depending on your long-term plans. A broker can help you weigh your options and find the best deal for your situation. ”Laura Hamilton, Mortgage Expert
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How much can I borrow with a buy-to-let mortgage?
The amount you can borrow for a BTL mortgage depends on several factors including:
Rental income: Lenders generally want the rental income to cover at least 125% to 145% of your monthly mortgage payments. The rental yield can be worked out by dividing total rent payments for the year by the property value, then multiplying that figure by 100. The higher the rental yield, the more you may be able to borrow. An ARLA registered letting agent should be able to advise you about local rental property prices in the area you’re looking to buy or you could research this on property rental sites, such as Zoopla.
Deposit: A larger deposit can help you increase the amount you can borrow.
Your income: While rental income is usually the primary factor, you'll still have an income assessment to ensure you'll be able to repay the loan when your property is vacant
Interest rates: The lower the rate, the more you may be able to borrow since monthly payments would become more affordable
Am I eligible for a buy-to-let mortgage?
Buy-to-let mortgages have stricter criteria than residential mortgages. While they vary by lender, typical requirements include:
Minimum age: Usually 21-25.
Maximum age: Some lenders have age limits on applications or by the time the loan is repaid, but BTL maximum age criteria may be more flexible than residential mortgages.
Home ownership status: Fewer lenders offer buy-to-let mortgages for first-time buyers, but some do.
Minimum income: Some lenders require you to earn £25,000 or more to apply for certain deals.
Deposit: Lenders usually require at least 25% of the purchase price, though portfolio landlords may need around 40%.
Rental income: Lenders usually require the property to bring in at least 125%-145% of the cost of the mortgage repayments. Many will also want an ARLA registered letting agent to confirm the rental potential.
Property type: Not all lenders accept applications for HMO (house of multiple occupancy) properties or mixed-use properties, so applying with a specialist lender may be necessary if you’re opting for a non-standard property type.
Credit history: As with other mortgages, the better your score, the greater choice of providers. And, therefore, the better rates of interest available to you.
How much will my buy-to-let mortgage cost?
The cost of a buy-to-let mortgage includes similar expenses to residential mortgages, but with some additional commercial costs:
Mortgage fees: Expect arrangement, valuation and legal fees to apply, which are often higher for commercial properties.
Deposit: Typically 25-40% of the property value.
Monthly repayment: Your payments will vary based on property value, how much you borrowed, your mortgage type and what interest rate you’re offered by your chosen lender.
Final capital repayment: Most buy-to-let mortgages are interest-only, so it's important to consider how you'll repay the capital (amount borrowed) at the end of the term. Some landlords save an element of their rental income, whereas others may sell up or remortgage their buy-to-let property to pay back the debt.
Additional stamp duty: If you already own another property, including your own home and other rental properties, you'll need to pay a second home surcharge on any additional property. In England and Northern Ireland this is 5% on top of standard stamp duty, in Scotland it's 8% on top of LBTT and in Wales higher residential tax rates may apply.
Buy-to-let mortgage comparison can help ensure that you maximise profit, especially in a turbulent market. An independent mortgage broker is an excellent resource for landlords looking to make the most of their portfolio. ”Jason McDonald, Mortgage Expert
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Buy-to-let FAQs
What additional fees will I need to pay on a buy-to-let property?
In addition to your mortgage, there are many costs involved in becoming a landlord and managing a rental portfolio that you may wish to consider:
Letting agent fees: Typically 10-20% of the rental income as a fee for managing the property, depending on the level of property management they provide.
Maintenance costs: Aside from generally keeping the property in good condition, there are a number of regulations (such as gas safety certificates) that you'll need to ensure you comply with in order to legally offer your property for let.
Income tax: Tax is due on rental income over your personal allowance, charged at the rate applicable to your overall income level. If you buy through a limited company you'll be charged corporation tax instead, which is generally lower.
Capital Gains Tax: When you sell a rental property, you’ll owe tax on any profits made above your annual tax-free allowance. It’s worth speaking to a tax specialist beforehand.
Building and landlord insurance: Tenants are only responsible for contents insurance - as a landlord, you need to pay buildings insurance to cover any structural issues with your property portfolio. You may also want to look into landlords' insurance to protect against lost income during tenant vacancies or non-payment.
What deposit do I need for a buy-to-let mortgage?
You’ll usually need at least a 25% deposit for a BTL mortgage. However, this can vary depending on the lender’s individual criteria and the property you’ve chosen.
It’s also worth keeping in mind that the higher deposit, the better your chances of getting a more competitive rate.
How many buy to let mortgages can I have?
There is no limit to the number of buy-to-let mortgages you can have, assuming you’re able to meet affordability for them all. However, some lenders are hesitant to lend to portfolio landlords (those with more than 4 active buy-to-let mortgages), making it harder to borrow as your property portfolio grows.
Some specialist lenders do cater to portfolio landlords, however, and they are often happy to use existing investment properties in place of, or addition to the deposit, in order to secure your borrowing.
Can I live in a buy-to-let house that I own?
No you can't, this would be breaking the terms of a BTL mortgage. Buy-to-let mortgages are only suitable for property that you intend to rent out as a landlord. Most mortgage terms will even restrict you living in them during the renovation period.
Are rates higher for buy-to-let properties?
Buy-to-let interest rates are typically higher than that of an equivalent mortgage on a residential property as lenders may consider them to be a higher risk.
The confusion may lie in the fact that most landlords use interest-only mortgages for buy-to-let purchases, which is cheaper to repay monthly. However, this means that at the end of the mortgage term you'd still owe the full loan, as you'll only have been repaying interest, not capital.
What happens at the end of my interest-only buy-to-let mortgage?
You will need to repay the loan capital (the full amount you borrowed) at the end of the mortgage term, as you will have only paid the interest. Lenders will expect you to have a plan in place for this when you take out the mortgage, and it often involves selling the rental property on.
It’s important to consider that if the cost of your property drops, then the resale income may not necessarily cover what you have borrowed. A back up plan is always a good idea, no matter how you plan to repay the capital.
Can I change my residential mortgage to a buy-to-let mortgage?
Yes, you can. It’s possible to remortgage a residential property onto a buy-to-let mortgage, so long as the lender feels that both yourself and the property meet the criteria of buy-to-let lending.
It’s also possible to use a let-to-buy arrangement, which is where you take out two mortgages at the same time. This involves remortgaging your current home to a buy-to-let so that you can keep it as a rental property, whilst taking out a new mortgage to buy another home to live in.
It’s worth reiterating that you can’t rent out a property on a residential mortgage. However, if you would like to try out being a buy-to-let landlord with your residential home before committing to it for the long term, it’s possible to look at getting a consent to let on your residential mortgage. This will give you a short term (usually 6-12 months) allowance to let out your home before you need to remortgage onto a buy-to-let product.
Can I get a buy-to-let mortgage as a first time buyer?
It can be more difficult, as some lenders prefer that you have experience of property ownership before you move into BTL mortgages. However, there are certainly lenders out there that will approve buy-to-let mortgages for first-time buyers.
Keep in mind that you won't benefit from the first-time buyer stamp duty relief if you're purchasing buy-to-let property.
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YOUR HOME/PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH YOUR MORTGAGE REPAYMENTS.
The FCA does not regulate mortgages on commercial or investment buy-to-let properties.
Uswitch makes introductions to Mojo Mortgages to provide mortgage solutions. Uswitch and Mojo Mortgages are part of the same group of companies. Uswitch Limited is authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 312850. You can check this on the Financial Services Register by visiting the FCA website. Uswitch Limited is registered in England and Wales (Company No 03612689) The Cooperage, 5 Copper Row, London SE1 2LH. Mojo Mortgages is a trading style of Life's Great Limited which is registered in England and Wales (06246376). Mojo are authorised and regulated by the Financial Conduct Authority and are on the Financial Services Register (478215) Mojo’s registered office is The Cooperage, 5 Copper Row, London, SE1 2LH. To contact Mojo by phone, please call 0333 123 0012.
*Average savings are based on Mojo Mortgages residential remortgage sales data, compared to the average SVR in February 2025. Actual savings will depend on individual circumstances.