If you’re thinking about buying a home to rent out, you’ve likely come across the term buy to let mortgage. But what is a buy to let mortgage in the UK, and how is it different from the mortgage you’d take out to buy your own home?
This guide breaks it down in simple terms, ideal for first-time landlords or anyone just exploring the idea.
Who are buy to let mortgages for?
Buy to let mortgages are designed for people who want to invest in property by renting it out rather than living in it themselves. It’s not only for full-time landlords. You could be:
- A working professional buying a second home to rent
- A parent purchasing a flat for your child to live in (and rent out rooms)
- Someone building a pension pot through rental income
It all starts with understanding what is a buy to let property. Simply put, it’s a residential property you buy with the intention of letting it out to tenants. You earn money from the rent they pay, and if the value of the property goes up over time, you may also benefit from capital growth.
How buy to let differs from residential mortgages
One of the biggest differences between buy to let and standard residential mortgages is how lenders assess your application.
With a normal residential mortgage, your income and outgoings matter most. But with a buy to let mortgage, your expected rental income plays a bigger role. Lenders want to see that the rent you charge will more than cover your monthly mortgage payments.
Other key differences include:
- Higher deposit requirements: often 20–25%
- Higher interest rates: since the risk is a bit higher for lenders
- Interest-only options: common in buy to let, where you repay the full loan at the end
People new to investing often ask, what is a consumer buy to let? This is a special category of buy to let mortgage. It applies when you’re renting out a property without running it as a business, for example, if you inherit a home and decide to let it. The rules are slightly different and may offer more protections for first-time landlords.
How do I change to a buy to let mortgage?
Life doesn’t always follow one path. Suppose you planned to live in a home long-term, but a new job abroad or a family situation changes that. In such cases, you might need to rent out your home. So, how do you switch?
You can apply to change your residential mortgage to a buy to let mortgage. If you are buying another home while keeping your current one to rent out, this is known as let to buy.
Lenders may:
- Offer a new buy to let product
- Require proof that you’ll rent the home
- Ask for a valuation to check if the rental income will cover the mortgage
It’s also worth noting that switching may involve new fees and terms. If you’re applying for a buy to let mortgage under changed circumstances, it’s important to speak with a lender early. Some may let you rent out your home on your current deal with something called “consent to let,” but it’s not guaranteed. In such cases, your home effectively becomes a buy to let property, even if you didn’t plan to become a landlord at first.
You can find more about who qualifies by learning more about the requirements for a buy to let mortgage.
Types of buy to let mortgage deals available
When you’re investing in rental property, your mortgage choice can shape both your cash flow and long-term returns. There are several buy to let mortgage types available, each with its own benefits.
Here are the most common options:
Fixed-rate buy to let mortgages
These give you predictable monthly payments for a set term, usually 2, 3, or 5 years. They’re ideal if you want stability, especially in a rising interest rate environment.
Tracker mortgages
These follow the Bank of England’s base rate plus a fixed margin. So, your payments can go up or down depending on market trends.
Discounted variable-rate mortgages
These are linked to the lender’s standard variable rate (SVR) and typically offer a lower rate for a limited time. Many beginners researching what a buy to let mortgage UK also ask how each deal affects their monthly cash flow and future plans. However, they may come with more risk if rates rise suddenly.
Many landlords choose interest-only deals, where you pay just the interest each month and repay the loan in full at the end. This keeps monthly costs lower, but you’ll need a plan to repay the lump sum later.
Your choice depends on your risk comfort, financial goals, and how long you intend to keep the property. If you’re applying for a buy to let mortgage for the first time, it helps to compare deals carefully and seek advice tailored to your situation.
Where to get a buy to let mortgage in the UK?
If you are wondering “where can I get a buy to let mortgage,” try these options.
1. High street banks
These include well-known names offering standard buy to let products, often with strict criteria around income and experience.
2. Specialist lenders
Some lenders focus on flexible solutions for those who may not meet traditional lending criteria, such as first-time landlords or people with less-than-perfect credit.
3. Mortgage brokers
A broker can guide you through the process and help find the best deals based on your circumstances. This can be helpful if you’re not sure which product suits you best or if your case is a bit unusual.
Knowing where you can get a buy to let mortgage also means thinking beyond just interest rates. Look at flexibility, early repayment charges, fees, and how well the lender understands your property goals.
For a full breakdown of how buy to let mortgage interest works, visit our article on buy to let interest rates.
What factors to consider before applying
Before you apply for a buy to let mortgage, it helps to be prepared. This can save time and prevent problems later.
Here are the main things to check:
1. Rental income expectations
Lenders want the rent to cover 125% to 145% of your monthly mortgage payments.
This is called the Interest Coverage Ratio (ICR).
The rent amount must be realistic. A letting agent or property expert may check this for you.
2. Your deposit
Most lenders ask for a deposit of 20% to 25% of the property’s value.
Sometimes, they may ask for more. It depends on:
- The type of property
- Your personal finances
- Your landlord experience
3. Your personal finances
Even though rent is important, lenders also check:
- Your salary
- Your credit score
- Any loans or debts
This is extra important if you are a first-time landlord.
4. Property type
Not all homes qualify for a buy to let mortgage.
Some properties may be harder to mortgage, such as:
- Studio flats
- High-rise buildings
- Houses of multiple occupation (HMOs)
Also, if you’re renting out a home you used to live in, you might come under consumer buy to let rules. These have different protections and checks.
What is a consumer buy to let?
If you rent out a property but don’t run a full business, you may be classed as a consumer landlord.
For example:
You move out of your old home and decide to rent it instead of selling it. This would be consumer buy to let.
This type of mortgage has extra protections for you because you’re not a professional landlord.
Final thoughts
Deciding to invest in rental property is a big step, but it can also be a rewarding one. Whether you’re looking to supplement your income, build long-term wealth, or turn your old home into a rental, there are many paths into the buy to let market.
The key is to understand your goals and match them with the right type of mortgage. From fixed-rate to tracker deals, and from first-time landlords to more experienced investors, there’s something out there for everyone.
If your situation has changed, or you’re just exploring your options, it’s a good idea to speak with a broker who understands the market and can guide you forward with clarity.