Looking to invest in rental property? A buy to let mortgage is designed for landlords and investors who want to purchase property to rent out. Whether you're a first time buyer entering the investment property market or an experienced landlord expanding your portfolio, Montgomery Financial is here to help.
We’re an independent buy to let mortgage broker working with over 90 mortgage lenders to help you compare the best buy to let mortgage deals available. Our expert mortgage advisers provide fee-free mortgage advice, guide you through the entire mortgage application process, and ensure you get the right mortgage deal for your needs.
A buy to let mortgage is a type of mortgage designed for people who buy property with the intention of renting it out. Unlike a standard residential mortgage, buy to let mortgages are assessed based on potential rental income as well as your personal finances. Lenders will evaluate the expected rental income from the property to ensure it covers the monthly mortgage repayments.
Most buy to let mortgages are interest-only, which means you pay only the interest each month and repay the full loan amount at the end of the mortgage term. This helps keep monthly payments lower and is suitable for many landlords.
Buy to let mortgages work differently from residential mortgages. The key factors lenders consider include the rental income potential of the property, your deposit amount, credit score, and your personal income.
To qualify, you usually need a deposit of at least 25% of the property’s value, though some lenders may accept 20%. The amount you can borrow is typically linked to the expected rental income, which must meet a certain percentage over the monthly mortgage payment, often 125% to 145%.
You’ll also need to meet the lender’s eligibility criteria, which vary depending on whether you’re applying as an individual, a first time buyer, or through a limited company.
Let’s get you moving
To be eligible for a buy to let mortgage, most lenders will require you to:
Be at least 21 years old (some require you to be over 25).
Own your own home or have a mortgage on your main residence.
Have a good credit score and meet income requirements.
Provide a deposit of at least 20–25%.
Prove that the expected rental income will cover the mortgage payments by at least 125%–145%.
Some lenders allow first time buyers to apply for buy to let mortgages, although the criteria may be stricter. If you’re looking for a mortgage as a first time buyer landlord, Montgomery Financial will guide you through the mortgage process and help you get approved.
You can apply for a buy to let mortgage either as an individual or through a limited company. Limited company mortgages have become more popular due to tax efficiencies for landlords with multiple rental properties.
An individual buy to let mortgage is based on your personal income, credit file, and rental income from the property. You’ll be personally responsible for the repayments.
A limited company buy to let mortgage allows you to hold properties in a company structure, often resulting in lower tax on profits. However, interest rates can be higher and not all mortgage brokers or lenders offer these options.
Montgomery Financial offers whole of market access to both personal and limited company buy to let mortgage products, helping you choose the right structure for your investment strategy.
The amount you can borrow depends on:
The value of the property.
Your deposit (typically 25%).
Expected rental income.
Your credit score and personal income.
Use our buy to let mortgage calculator to estimate how much you can borrow and what your monthly mortgage payments might be. Our advisers will assess the figures and recommend mortgage products that fit your budget.
Buy to let mortgages usually require a higher deposit than standard residential mortgages. Most lenders ask for at least 25% of the property value. The larger your deposit, the better the mortgage rates you can access.
Buy to let mortgage rates vary depending on your circumstances and lender criteria. Interest-only mortgages are common, meaning you pay only the interest each month and repay the capital at the end of the term. Some landlords prefer repayment mortgages to gradually reduce the loan amount.
We help you compare fixed rate buy to let mortgage deals and variable rate products to suit your cash flow and long-term goals.
Interest-only mortgage – Lower monthly mortgage repayments. Capital is repaid at the end of the mortgage term.
Repayment mortgage – Monthly payments cover both interest and loan capital. Loan is repaid in full over time.
Fixed rate mortgage – Interest rate stays the same for a fixed term (2, 3, 5, or 10 years).
Variable rate mortgage – Interest rate can change with the lender’s standard variable rate or Bank of England base rate.
Holiday let mortgage – For properties rented out short-term, such as Airbnb or seasonal lets.
HMO mortgage – For houses in multiple occupation, such as student or shared housing. Different regulations and mortgage products apply.
If you already own a rental property, you may be eligible for a remortgage. Reasons to remortgage include:
Securing a better interest rate.
Raising capital to invest in additional properties.
Switching to a mortgage product with more flexible terms.
Moving the mortgage into a limited company structure.
We’ll help you compare the best remortgage deals and understand all costs involved, such as legal fees, early repayment charges, and valuation fees.
Getting a buy to let mortgage involves:
Speaking to a mortgage broker to assess your goals.
Providing proof of income, ID, and existing property portfolio.
Using a buy to let mortgage calculator to understand borrowing limits.
Applying for a mortgage agreement in principle.
Submitting a full mortgage application.
Receiving your mortgage offer after lender checks and property valuation.
Our mortgage advisors guide you through the process from start to finish, ensuring you get the best deal.
Montgomery Financial is a fee-free mortgage broker with specialist experience in buy to let mortgage advice. Whether you’re buying your first rental property, remortgaging a portfolio, or investing through a limited company, we’ll help you compare the best mortgage deals available.
We offer whole of market access, meaning we work with more than 90 mortgage lenders to find a mortgage deal that suits your needs. Our expert mortgage brokers understand landlord requirements, rental yield calculations, and how lenders assess affordability based on expected rental income.
Can I get a buy to let mortgage as a first time buyer?
Yes, some lenders offer buy to let mortgages to first time buyers. Criteria are stricter and you’ll need a larger deposit and strong income. Montgomery Financial can help you apply.
How much can I borrow?
This depends on the rental income from the property, your deposit, and your financial profile. Lenders typically require rental income to cover 125–145% of the monthly mortgage payment.
Can I get a mortgage with bad credit?
Some specialist lenders offer buy to let mortgages for people with poor credit. Your interest rate may be higher and criteria stricter. Our advisers will help you explore your options.
What is the difference between a residential mortgage and a buy to let mortgage?
Residential mortgages are for properties you live in. Buy to let mortgages are for rental properties and are based on rental income. Interest-only terms are more common, and the deposit requirement is higher.
Can I use my buy to let mortgage for a holiday let?
Holiday lets usually require a separate holiday let mortgage. Lenders assess the seasonal rental income differently. We can help you find the right mortgage product.
Can I live in a buy to let property?
You cannot live in a property financed with a buy to let mortgage. If you plan to move in, you’ll need consent to let or a residential mortgage instead.
Do I need a mortgage broker?
Using a mortgage broker like Montgomery Financial gives you access to the whole of market, increases your chances of approval, and helps you compare the best buy to let mortgage rates and products.
Montgomery Financial is authorised and regulated by the Financial Conduct Authority. Our expert mortgage brokers will help you find the best buy to let mortgage deal and guide you through the application process.
Whether you're buying your first investment property or managing a large rental portfolio, we’re here to support your mortgage journey from start to finish.
Your property may be repossessed if you do not keep up with repayments on your mortgage.
All people working within Montgomery Financial share those values and beliefs and support the reinforcement of the fair treatment of our customers.
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK
There may be a fee for mortgage advice, the exact amount will be based on your circumstances and will be confirmed upon initial consultation. A typical fee of £476 is payable on application for residential mortgages and £673 for buy to let mortgages.
Montgomery Financial is a trading style of Montgomery FS Ltd, which is an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. Montgomery FS Ltd is registered in England and Wales no: 12305679. Registered Address: The Granary 8 Strixton Manor Business Centre, Strixton, Wellingborough, NN29 7PA
Your home may be repossessed if you do not keep up repayments on your mortgage.
