Guide to the Buy-to-Let Mortgage Process (UK)
What Is a Buy-to-Let Mortgage?
A buy-to-let (BTL) mortgage is designed for people who want to purchase a property and rent it out to tenants. It's not the same as a regular residential mortgage -lenders assess your application differently and expect a larger deposit.
Who Can Get a Buy-to-Let Mortgage?
To be eligible, most lenders will expect you to:
- Be at least 21 years old
- Have a minimum 25% deposit (some require more)
- Own your own home or have previous landlord experience (preferred but not always essential)
- Earn over £25,000 a year (some lenders may be more flexible)
- Prove the rental income will cover 125%–145% of the mortgage payments
How Does the Process Work?
Here's a step-by-step breakdown of the buy-to-let mortgage journey:
1. Research the Market
- Look at areas with strong rental demand and good yields
- Think about tenant types: students, professionals, families?
2. Set Your Budget
- Save for your deposit (typically 25%+)
- Don’t forget extras like:
- Stamp Duty (higher for BTL)
- Legal fees
- Letting agent fees
- Insurance and maintenance costs
3. Get a Decision in Principle (DIP)
- A DIP gives you an idea of how much you can borrow and helps you make serious offers.
4. Choose the Right Property
- Look for rental potential, not just resale value.
- Consider local schools, transport links, and tenant appeal.
5. Apply for a Mortgage
- Use a specialist broker or go directly to a lender.
- You’ll need to provide:
- ID and proof of income
- Details of the property
- Expected rental income
6. Valuation and Checks
- The lender will carry out a valuation to confirm the property’s rental potential.
7. Mortgage Offer
- If approved, you'll receive a formal mortgage offer - usually valid for 3–6 months.
8. Conveyancing and Legal Work
- A solicitor handles the legal side, including contracts and transfer of funds.
9. Completion
- Once complete, the property is yours — and you're ready to let it out.
After You Buy: Becoming a Landlord
Once you complete your purchase, you’ll need to:
- Register as a landlord with your local council (if required)
- Get landlord insurance
- Ensure the property meets legal standards:
- Gas and electrical safety checks
- Energy Performance Certificate (EPC) rated E or better
- Secure tenancy deposit protection
- Right to Rent checks
Things to Watch Out For
- Rental voids: Have a financial buffer for empty periods
- Tax rules: You’ll pay tax on rental income — and relief on mortgage interest is now limited
- Changing regulations: Stay up to date with landlord laws
- Property condition: Unexpected repairs can eat into profits
Tax and Legal Considerations
- You must declare rental income via Self Assessment
- Consider Capital Gains Tax if/when you sell
- Some investors buy via limited companies for tax efficiency — always get professional advice
Final Tips
- Use a mortgage broker if you're unsure where to start
- Plan for the long term — rental income isn’t guaranteed
- Consider property management if you don’t want to handle tenants yourself
Need help finding the right buy-to-let mortgage?
Get in touch with our expert team, we’re here to guide you through the entire process.
