A buy to let mortgage, a type of loan specifically designed for people who want to buy property to rent out, not live in. Also known as investment property mortgage, it works differently from a standard home loan because lenders care more about the rental income than your salary. If you’re thinking of becoming a landlord in the UK, this isn’t just about buying a house—it’s about running a small business with walls and a roof.
You can’t just walk in and get approved like you would for your first home. Lenders look at how much rent you can charge and compare it to the monthly mortgage payment. Most require the rent to cover at least 125% of the mortgage cost, even if interest rates go up. That means if your mortgage is £800 a month, they’ll want to see rent coming in of at least £1,000. They also check your personal income, existing debts, and credit history—but your salary matters less than it does for a regular mortgage. Your credit score still counts, but a 650 score might still work if your rental numbers look solid.
Down payments are higher too. While first-time homebuyers might put down 5%, most buy to let lenders ask for 25% or more. That’s because the risk is higher—you’re not living there, so if the property sits empty for a few months, you’re still on the hook for payments. You’ll also need to budget for repairs, letting agent fees, insurance, and taxes. The UK property investment, the practice of purchasing real estate to generate income through rent or capital growth. Also known as property investment, it’s not a get-rich-quick scheme, but it can build long-term wealth if done right. Many landlords start with one property, then use the equity they build to buy more. Others use shared ownership as a stepping stone, buying a portion of a home and renting out their share.
Not every property is a good fit. A flat in a busy city centre might rent out fast but come with high service charges. A detached house in a quiet suburb might sit empty for months. Location, condition, and tenant demand matter more than how nice the kitchen looks. And while some landlords rely on property value rising over time, that’s not guaranteed—especially with changing interest rates and government rules. The buy to let criteria, the rules and requirements lenders use to decide if you qualify for a rental property loan. Also known as landlord mortgage rules, they change often, so what worked last year might not work now. Some lenders won’t touch properties in certain areas. Others won’t lend if you already own a home. Some require you to have a minimum income of £25,000—even if your rental income is higher.
Interest rates on buy to let mortgages are usually higher than standard ones, and fees can add up fast. Arrangement fees, legal costs, and survey charges are common. You’ll also pay more in stamp duty if you already own a home. But if you’ve done the math and you’re ready to handle the responsibility, it’s still one of the most common ways people in the UK build passive income.
Below, you’ll find real advice from people who’ve been there—how to calculate if a property will cash flow, what lenders really look for, how to avoid common traps, and what to expect when you’re just starting out. No fluff. Just what works in the UK market right now.
