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Buy to Let Mortgage Lenders

How to choose the right buy to let mortgage lender

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By Pete Mugleston  | Mortgage Advisor Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 11th July 2019 *

We receive many enquiries from customers looking for the best mortgage lenders for buy to let (BTL) properties.

The experienced BTL advisors we work with are on hand to help you navigate the buy to let mortgage landscape and help you find the best buy to let lenders for your individual circumstances.

For an initial no-obligation, no-fee conversation, call us on 0808 189 2301 or make an online enquiry and we’ll be in touch soon. For general information on buy to let mortgages, see our BTL guide.

In this article we’ll be covering:

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Buy to let mortgage lenders: what you need to know

The majority of UK buy to let lenders offer interest-only BTL mortgages, with the borrower repaying the monthly interest payments using the rental income generated by the property.

Most buy to let mortgage lenders in the UK require a higher deposit than for residential mortgages. That’s why it’s important to speak to an expert for advice on which lenders to approach, to avoid wasting your time and the possibility of having your application declined.

Some other important points to consider:

  • Most lenders require a minimum personal income to help cover any potential periods without rental income - usually in the region of £20k - £25k a year. Some lenders will accept £15k and a few don’t require a minimum income at all.

  • The majority of providers require rental coverage to be 125-170%, depending on the applicant’s tax status. Some lenders will allow top slicing, which is the use of personal income to increase the loan amount if the projected rental income isn’t high enough to afford the mortgage.

  • If you have adverse credit history there are likely to be fewer willing lenders so the loan to value (LTV) requirements may be higher. Eligibility factors also include how recent and/or severe the credit issues are.

How to find the best buy to let mortgage lenders in the UK

While it might be tempting to approach lenders directly, the best way to make sure you secure a great deal is to work with a whole-of-market BTL mortgage broker. The specialists we work with can quickly compare products and have access to the council of mortgage lenders for buy to let and any buy to let specialist lenders that you may not know of.

Even with a good credit history, your credit score may be adversely affected if you make multiple applications over a short space of time. This can be avoided by liaising with one of the buy to let experts we work with, who will be able to carry out searches on your behalf.

If you’d like to be put in touch with a whole of market broker that specialises in arranging BTL mortgages, call us today on 0808 189 2301 or make an enquiry and we’ll be in touch to discuss the right course of action for your needs.

Lenders for buy to let mortgages - what to expect

Every lender will have a different set of requirements for buy to let mortgage applicants. In the following section we have provided a brief summary of some of the better-known BTL lenders and their approach to buy to let mortgage applications at the time of writing this article.

While this will provide an overview of the BTL mortgage lenders market, we advise you speak to an expert for the full picture including building society buy to let mortgages, private buy to let mortgages and online buy to let mortgages.

Nationwide buy to let

Nationwide buy to let mortgages are provided through their lending business, The Mortgage Works. The lending criteria for applicants interested in The Mortgages Works buy to let mortgages is as follows:

You must be a UK resident of over 21 years old able to supply three years’ minimum UK address history who is borrowing at least £25,001.

Barclays buy to let

Barclays buy to let mortgages are available to applicants over 21 years of age and up to three other applicants, who must be 18+. Barclays’ BTL upper lending limit is capped at £2m - single applicants with an annual salary of £25k can borrow up to £1m but if the property value is over £1m they must earn at least £75k to qualify for a Barclays BTL mortgage. The advisors we work with have access to private and high net worth BTL mortgage providers who don’t have these lending caps.

HSBC buy to let

HSBC buy to let mortgages are only available to UK residents with a minimum annual salary of £25k who are already homeowners. The maximum LTV for an HSBC BTL mortgage is 75%, subject to the amount of the loan, and the rental income must be at least 145% of the monthly repayments.

Additionally, the property mustn’t be a House in Multiple Occupancy (HMO) which means it couldn’t be let to multiple, separate tenants such as students.

RBS buy to let

The age restrictions for RBS buy to let mortgages are more relaxed than many other lenders, being available to UK residents between the ages of 18 and 70. RBS BTL mortgages allow you to borrow between £25k and £3.5m over a minimum 3-year term, with a deposit of at least 25% (35% for new builds).

The advisors we work with have access to specialist BTL lenders who may consider approving a borrower with less deposit than this.

Santander buy to let

Santander buy to let mortgages are available to existing homeowners with a minimum annual salary of £25k through Santander Intermediaries buy to let. The highest loan available is £750k, with a maximum LTV of 75% or 70% for new build flats and there is the possibility of capital raising via remortgage/debt consolidation.

While most buy to let mortgages are fixed rate for five years, as of January 2019, Santander has launched a one-year, fixed rate BTL mortgage. The deal is also available at up to 75% LTV, has no product fees and a rate of 2.25%.

Lloyds buy to let

To apply for a Lloyds buy to let mortgage you must already be a homeowner of over 25 years of age who will not be older than 80 at the end of the mortgage term. The minimum property value available is £50k, a deposit of at least 25% is required.

You can borrow up to £2m or hold up to three mortgages across the Lloyds Banking Group brands: 

  • Lloyds Bank
  • Halifax
  • Bank of Scotland
  • Birmingham Midshires
  • Scottish Widows Bank
  • Intelligent Finance
  • The Mortgage Business (TMB)

Following tax legislation in 2017, Lloyds also factors in any additional tax liability. To see if this affects you give us a call on 0808 189 2301 or get in touch.

TSB buy to let

It’s possible to get a three or five-year fixed rate TSB buy to let mortgage with a loan value of £25,001 up to £1m, or a maximum of three mortgages up to £2m. The maximum LTV is 75% (but only 65% for new builds), and as with most other lenders, you must be over 25 to apply for any Lloyds TSB buy to let mortgages.

Halifax buy to let

Halifax buy to let mortgages are available to existing UK homeowners over the age of 25, and you must be under 80 when the term ends. The minimum deposit for Buy to lets with Halifax is 75%, and the property must have a value of at least £50,000. To be eligible, you may not have more than 10 BTL mortgaged properties with any lender.

NatWest buy to let

You can apply for a NatWest buy to let mortgage of between £25k and £3.5m if you are a UK resident aged between 18 and 70, and have a minimum deposit of 25% (or 35% for new builds) for a property worth at least £50k. NatWest BTL mortgages are only available for properties not being used as HMOs.

Yorkshire Building Society buy to let

Yorkshire Building Society buy to let mortgages are provided through their intermediary subsidiary, Accord Mortgages. The LTV for Accord for Intermediaries BTL mortgages is between 75% and 80% for loans between £50k and £1m.

Accord BTL may consider lending to applicants with adverse credit history, but there are various restrictions, so we recommend speaking to one of the expert brokers we work with rather than applying directly and risking any further damage to your credit score. Drop us a line or call us on 0808 189 2301 to see if a Yorkshire buy to let mortgage is right for you.

Woolwich buy to let

Woolwich buy to let mortgages are available via Barclays intermediaries and accept applicants over 21 years of age who earn a minimum annual salary of £25k. With a Woolwich BTL mortgage, landlords can let their properties to students, companies, housing association and as standard Assured Shorthold Tenancies (ASTs).

Birmingham Midshires buy to let

Birmingham Midshires buy to let mortgages are handled by their BTL mortgage intermediary, BM Solutions. BM Solutions buy to let mortgages will be considered for applicants aged between 25 and 75, with the maximum age at the end of the term being 80. You cannot be a first-time buyer but you can be a first-time or professional landlord.

While at least one applicant must be employed, self-employed or retired, there is no minimum income requirement except in the case of portfolio landlords.

Virgin buy to let

For a Virgin Money buy to let mortgage the rental income must be at least 145% of the monthly repayments. Personal income can be used to cover rental shortfalls between 100% and 145% interest coverage ratio (ICR) if you have a salary of at least £50k, except in the case of BTL portfolio landlords, LTVs over 75%, or where the mortgage term extends beyond 75 years of age.

If you are a portfolio landlord - someone with over four BTL properties - and want to find out more about Virgin Money BTL mortgages or other lenders available to you – please feel free to send us an enquiry and the expert buy to let mortgage brokers we work with will be happy to assist you.

Post Office buy to let

Post Office buy to let mortgages are provided by the Bank of Ireland. In order to qualify for a Post Office BTL mortgage you must have a minimum 25% deposit (75% LTV), be aged 21+ (and not over 80 at the end of the mortgage term) and a UK homeowner.

Post Office BTL mortgages are available as fixed rate for a minimum of five years on loans between £25,001 and £1.5m. As is often the case, the ability to pay is assessed on rental income, which must exceed 145% of the monthly interest.

Aldermore buy to let

Aldermore offers a fairly wide variety of buy to let mortgages and products including special purpose vehicles (SPVs), limited liability partnerships (LLP), new builds, HMOs, multi-unit freehold and ex-local authority properties. Aldermore BTL mortgages are also offered to portfolio landlords for up to 16 properties.

Aldermore offers BTL mortgages to existing landlords over the age of 21- and first-time landlords over the age of 25. The minimum property value they lend on is £60k, with a minimum deposit of 20%, or 25% for first time landlords.

Leeds Building Society buy to let

Leeds Building Society BTL mortgages are offered with a minimum LTV of 60% for a maximum loan of £500k and include HMOs, and 2-year or 5-year fixed rate options. It may also be possible to make up to 10% capital repayments each year without incurring any charges.

Principality buy to let

Principality offers fixed rate, tracker and discounted buy to let mortgages with an LTV range of 60% to 75% and minimum rental income of 145% of the monthly interest payments. However, Principality buy to let mortgages are limited to properties in England and Wales. The advisors we work with have access to lenders who cover other parts of the UK and even overseas.

First Direct buy to let

Although historically First Direct has offered buy to let mortgages, this product is no longer available.

Don’t worry though - there are plenty of other willing lenders on the market! Contact us and we’ll hook you up with a BTL provider that is best suited to you and your individual situation.

Kent Reliance buy to let

There are a wider range of options and products with Kent Reliance for Intermediaries buy to let mortgages than many other lenders; including expats, portfolio landlords, limited companies, HMOs, adverse credit history (except in the case of repossessions) and large loans.

Kent Reliance buy to let mortgages are generally available to people aged between 25 and 79, with the maximum end-of-term age set at 85, though depending on the circumstances, those younger than 25 may be considered.

There are various lending criteria attached to all of the above so it’s important you have the right advice before approaching the lender directly. Call us today on 0808 189 2301 for a no-fee, no-obligation enquiry.

The Coventry buy to let

Coventry buy to let mortgages are offered to new and prospective landlords, including portfolio landlords with no more than five BTL properties mortgage to the Coventry Building Society Group and those with up to 10 mortgage to any other lenders.

Coventry Building Society buy to let mortgages’ LTV range is between 50% and 75%, dependent on the usual factors such as income and financial commitments, credit history, potential rental income.

Clydesdale Bank buy to let

To apply for a Clydesdale buy to let mortgage you must be over 18 with a good credit history. Other criteria is only disclosed on application so if you make an enquiry, one of the BTL mortgage experts we work with can assist with any questions you may have to help you get a head-start.

Skipton buy to let

Skipton Building Society buy to let mortgages are available as 2-year or 5-year fixed, tracker or variable rate mortgages on a maximum of five properties totalling £1.5m.

In addition to the buy to let lenders listed above, the advisors we work with have also successfully arranged buy to let mortgages with the providers in the following list of buy to let lenders:

  • ABSA
  • AIB
  • Abbey
  • Alliance and Leicester
  • Al Rayan
  • Atom Bank
  • Axis
  • Bank of China
  • Bank of England
  • Bank of Ireland
  • Basel 3
  • Bath Building Society
  • Britannia
  • Chelsea Building Society
  • Cheltenham and Gloucester
  • Chorley
  • Co-op
  • Danske Bank
  • Fleet Mortgages
  • Handelsbanken
  • Hanley Building Society
  • Interbay
  • Kensington
  • Kent Reliance 
  • Landbay
  • Leeds BS
  • Leek United
  • Metro Bank
  • Monmouthshire
  • New Street
  • Newcastle Building Society
  • Northern Rock
  • Norwich and Peterborough
  • Nottingham Building Society
  • Paragon
  • Platform
  • Precise Mortgages
  • Scottish Widows
  • Shawbrook
  • State Bank of India UK
  • Tesco Mortgages
  • TMB
  • TMW 
  • Ulster Bank
  • West Bromwich Building Society

Seek expert advice to find buy to let mortgage lenders in the UK

If you’re looking to take out a buy to let mortgage, why not reach out to us for some expert advice - there are no obligations or fees! You can call us on 0808 189 2301 or send us a message so we can find the most suitable BTL mortgage broker for you.

No matter your situation, the whole-of-market brokers we work to pair you with the best lender to meet your individual needs and requirements - be that with a high street bank, or a buy to let specialist lender.

We only work with passionate, accredited brokers with a whole-of-market view and a strong track record in successfully arranging mortgages for all our customers, who consistently rate us 5 stars on Feefo for quality of service and advice.

Updated: 11th July 2019
OnlineMortgageAdvisor 2020 ©

FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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