Question 1

How much deposit do I need for a buy-to-let mortgage?

Accepted Answer

Most UK buy-to-let lenders require a minimum 25% deposit (75% LTV), with the best rates typically at 35–40% deposit (60–65% LTV). Limited company BTL applications and HMOs may require larger deposits.

Question 2

What is the stamp duty surcharge on buy-to-let properties?

Accepted Answer

Buy-to-let and second-home buyers in England & Northern Ireland pay an additional 5% surcharge on top of standard stamp duty rates (effective from 31 October 2024). Non-UK residents pay a further 2% surcharge on top of that. Use our SDLT calculator to model your scenario.

Question 3

What rental income do I need to qualify for a BTL mortgage?

Accepted Answer

Lenders apply an Interest Coverage Ratio (ICR) — typically 125% for basic-rate taxpayers and 145% for higher-rate taxpayers, stress-tested at 5.5–8.5%. So if a lender uses 145% at 7%, a £150,000 mortgage needs ~£1,267 monthly rent.

Question 4

Should I buy a buy-to-let in my personal name or via a limited company?

Accepted Answer

Limited-company (SPV) ownership has become more common since Section 24 phased out mortgage interest relief for personal landlords. Personal-name owners pay income tax on full rent; company structures pay corporation tax on profit and can deduct mortgage interest fully. Tax treatment varies — consult an accountant for your specific position.

Question 5

Can I get a buy-to-let mortgage as a first-time buyer?

Accepted Answer

Yes, but the lender pool is much smaller. Most BTL lenders require you to already own a residential property; a handful accept first-time buyer landlords with stronger income, larger deposits and tighter rental cover ratios.

Question 6

Do non-UK residents pay extra stamp duty on buy-to-let?

Accepted Answer

Yes — non-UK residents pay a further 2% surcharge on top of all standard and additional-property bands, on purchases over £40,000. The surcharge can be reclaimed if you spend 183+ days in the UK in any 365-day window within 2 years of completion.

Buy-to-Let Mortgage Enquiry

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Buy-to-Let ICR Stress-Test Cheat Sheet

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