Specialist Buy-to-Let to Unlock Rental Income and Portfolio Growth

A buy-to-let mortgage is a loan taken out on a property intended for rental to tenants rather than for personal occupancy. Most are interest-only, keeping monthly payments low, with the loan repaid when the property is sold or refinanced. Lenders evaluate both your financial profile and the property’s rental income.

BTL mortgages are available for first-time landlords, experienced/portfolio landlords, and SPV limited companies. First-time landlords usually need a clean credit history and a minimum income, while portfolio landlords are assessed on overall debt levels and rental income coverage. 

Typical maximum loan-to-value (LTV) is 75% (80% for strong cases). For refurb-to-let bridges, leverage may be set against Gross Development Value (GDV). The actual loan size is often capped by a rental stress test (see below) rather than LTV.

Lenders use an Interest Cover Ratio (ICR) to ensure rental income comfortably covers mortgage payments. The monthly rent must exceed a stressed interest payment by a set margin, typically 125% to 145%, calculated at a notional interest rate (e.g. 5.5% to 8%).

Example: annual rent ÷ 125% (or 145%) ÷ stressed rate = maximum loan available (subject to LTV limits). If it falls short, the loan may be reduced, or top-slicing using other income may apply.

Top-slicing uses surplus personal income, and portfolio servicing uses surplus rent from other properties, to meet stress tests and increase borrowing on lower-yielding assets.

An SPV (limited company) can simplify underwriting and may offer tax advantages for some investors, while personal ownership is usually simpler and cheaper to set up. The best option depends on your tax situation and portfolio plans - seek independent tax advice before deciding. Our experts can source finance to transfer assets from personal ownership to a SPV should your circumstances change.

Typically, HMOs are spacious houses with communal facilities rented to several tenants, whereas MUFBs are blocks of flats or multiple houses owned under one legal title. HMOs/MUFBs may need specialist products, higher experience hurdles and licensing. 

For straightforward cases you can expect:

• Agreement in Principle: Minimum 48 hours from formal application
• Valuation: 2-3 weeks from instruction depending on property access
• Completion: from 10–28 days, though more complex deals may take longer

Speed is largely influenced by having a responsive solicitor and a clean title. Ensuring all necessary documentation - such as utility certificates, EPCs, asbestos reports, tenancy agreements and licenses - are in place can further streamline the process.

Typical costs include:

• Product/arrangement fee (often 1% - 2% of the loan), but can be higher if your rental income does not meet the ICR hurdle and a lower pay rate is needed to give you the leverage required)
• Valuation and legal fees (yours and sometimes the lenders)
• Broker fee (where applicable)
• Early Repayment Charges (ERCs) during fixed periods (some products offer reduced/zero ERCs)
• For refurb-to-let bridges: normally retained interest plus possible exit fees

Yes. Use a short-term bridge to purchase and upgrade the property (e.g., HMO conversion), then refinance onto a term BTL mortgage at the uplifted value once lettable. This strategy can improve yield and release equity for the next purchase.