5 factors to research prior to obtaining a buy to let mortgage

There are many factors to consider when planning to obtain a buy to let mortgage.

In this post we will discuss 5 main things to research before taking that step into the property investment world.

Lenders’ criteria

Before applying for a buy-to-let mortgage, it’s important to understand the criteria that lenders use to assess your eligibility.

This can include factors such as the size of the deposit you have, your credit score, the expected rental income from the property, and your personal income and expenses.

Make sure to research the different lenders and their criteria to increase your chances of approval.

This can prove to be a time-consuming process, especially while focusing on your property venture.


It is extremely important to understand the affordability of the mortgage before applying as buy-to-let mortgages can be more expensive than residential mortgages.

Lenders typically require the rental income to cover at least 125% of the mortgage repayments (and as high as 145% depending on circumstances) including other expenses such as maintenance costs and management fees.

Interest rates

Interest rates for buy-to-let mortgages can vary depending on the lender, the size of the deposit, and the length of the mortgage term.

Make sure to compare different lenders and their interest rates to find the best deal for you.

Deposit size

Buy-to-let mortgages typically require larger deposits than residential mortgages, with lenders often asking for at least 25% of the property’s value.

Be prepared to save up for a larger deposit and factor this into your overall financial plan.

Tax implications

Owning a buy-to-let property can have tax implications, including income tax on rental income and capital gains tax on any profit made when selling the property.

It’s important to understand these implications and factor them into your financial plan before investing in a buy-to-let property. We recommend that you contact a tax professional for advice.

Simplify this process by contacting Freedom Financial, as a buy to let mortgage broker we will ensure you get the correct information concerning your property investment venture while researching and obtaining the best available products for your property objectives.