What is a Buy to Let mortgage?

A Buy to Let property (sometimes referred to as ‘buy to rent’ or ‘BTL’) is a type of property investment, in which the investor becomes a landlord and rents out the property. A Buy to Let mortgage is a loan secured against one of these properties.

There’s a lot to think about before jumping into this type of investment. Whether you’re a first-time buyer of a Buy to Let home, we can assist you with the information you need to make the right choice.

What is the difference between a Buy to Let mortgage and a normal mortgage?

A Buy to Let mortgage differs from a residential mortgage in that it is largely assessed on the property’s profitability, i.e. how much rent it can generate vs. the cost of the mortgage – rather than on your own personal financial circumstances.

Many Buy to Let lenders will require you to have a minimum salary, typically £20,000 or £25,000.

Once approved, your Buy to Let mortgage enables you to rent out the property to tenants, whereas you cannot do this with a residential mortgage.

Other differences include:

  • Interest rates are typically higher
  • Deposit required and property value
  • Arrangement fees for BTL

Can You Get a First-Time Buyer Buy-to-Let Mortgage?

A first-time buyer can take out a mortgage on a buy-to-let property but there are very few lenders available that offer these kinds of niche products, consulting a mortgage broker like us will help you find the best products available.

How to apply for a buy-to-let mortgage

Your buy-to-let mortgage broker will provide you with a free initial consultation with no commitment to continue, but if you do decide to progress, they will walk you through the application process from there, starting with finding the right lender.

Your broker might suggest applying for a buy-to-let mortgage in principle. This is an initial agreement with the lender, during which they will establish how much you can theoretically borrow and under what terms and conditions. Further credit checks and underwriting must take place before you can progress with a full application.

What if I have no proof of income?

You’ll need to find a buy-to-let mortgage lender with no minimum income requirements where personal earnings are concerned. These lenders are often flexible and base the agreement entirely on the property’s projected rental income.
The help of a specialist mortgage broker who knows the market inside out and has deep relationships with the kind of niche lenders you’d need is highly recommended.

Want to rent out your current home?

You may be interested in keeping your current home and transforming it into a property to let – a process sometimes referred to as Let to Buy.
One option is to ask your current lender for their consent to let the property out, which might involve a fee or switching your mortgage to a higher rate – not all lenders will allow this.
Alternatively, you can remortgage to a new lender on a Buy to Let deal. If you plan to stay with your current lender, you must inform them that you intend to let your home – failure to do so could be classed as a breach of contract.

“Not all Buy To Let mortgages are regulated by the Financial Conduct Authority.”


Looking for advice or information about buy-to-let mortgages? A broker who specialises in rental property finance can answer all of your questions and help you achieve your goals.

Not all buy-to-let mortgages are the same – if you want to get the best deal, you’ll need to speak to the right specialist for your needs and circumstances at Three Shires Financial Group.

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    Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

    Three Shires Financial Group is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.
    Proprietor: Philip Johnston

    We offer residential mortgages and general insurance business. You can check this on the FCA's Register by visiting the FCA's website www.fca.org.uk or by contacting the FCA on 0800 111 6768. is regulated by FCA, commercial mortgages and most buy-to-let and offshore mortgages are not regulated by the FCA.


    Typically, we do not charge a fee for arranging a mortgage, however the actual fee will depend on your circumstances.

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