Question 1

What is a Buy To Let mortgage?

Accepted Answer

A Buy To Let (BTL) mortgage is a loan specifically designed for properties purchased to rent out to tenants. Unlike residential mortgages, lenders assess affordability primarily based on the expected rental income — typically requiring rent to cover 125%–145% of the mortgage payment at a stress-tested rate. BTL mortgages are available on interest-only or repayment terms and are not regulated by the FCA for most landlords.

Question 2

Can I get a Buy To Let mortgage through a limited company?

Accepted Answer

Yes. Limited company Buy To Let mortgages allow landlords to purchase investment properties in a company name rather than personally. This is increasingly popular following Section 24 tax changes, which restrict personal mortgage interest relief. Lenders assess the company's ability to service the debt and directors are often required to provide personal guarantees.

Question 3

What is an SPV mortgage?

Accepted Answer

An SPV (Special Purpose Vehicle) mortgage is a type of limited company BTL mortgage where the borrowing company exists solely to hold property — it has no trading activity. Most BTL lenders who lend to companies prefer or require an SPV structure. The most common SIC code used is 68100 (buying and selling of own real estate) or 68209 (letting and operating of own or leased real estate).

Question 4

What is a Holiday Let mortgage?

Accepted Answer

A Holiday Let mortgage is designed for properties let on a short-term basis — typically through platforms like Airbnb or Sykes Cottages. Lenders assess affordability based on projected annual rental income across high, mid and low seasons rather than a single tenancy. Holiday let properties may qualify as a Furnished Holiday Let (FHL) for favourable tax treatment if they meet HMRC occupancy rules.

Question 5

What is an HMO mortgage?

Accepted Answer

An HMO (House in Multiple Occupation) mortgage is for properties let to three or more tenants from different households who share communal facilities. Properties with five or more occupants require a mandatory HMO licence from the local council. HMO mortgages are offered by specialist lenders and typically allow higher rental yields than standard BTL, but underwriting is more complex.

Question 6

What is a Multi-Unit Freehold Block mortgage?

Accepted Answer

A Multi-Unit Freehold Block (MUFB) mortgage is for a single freehold title containing multiple self-contained residential units — for example, a building converted into four flats all under one ownership. Standard BTL lenders do not cover MUFBs; specialist lenders are required who assess the aggregate rental income across all units.

Question 7

What is a Let to Buy mortgage?

Accepted Answer

Let to Buy is when a homeowner converts their existing residential property into a Buy To Let — remortgaging it onto a BTL product — and uses the released equity as a deposit to purchase a new home to live in. Both mortgages are arranged simultaneously. This strategy allows you to retain your existing property as an investment rather than selling it.

Question 8

Do you charge broker fees?

Accepted Answer

No. We are a fee-free mortgage broker. We are paid a procuration fee by the lender when your mortgage completes. You receive our whole-of-market advice and full application service at no direct cost to you.

Question 9

What LTV can I get on a Buy To Let mortgage?

Accepted Answer

Most standard BTL lenders offer up to 75% LTV (loan-to-value), meaning you need a minimum 25% deposit. Some specialist lenders offer up to 80% LTV on standard BTL properties, though rates increase at higher LTVs. HMO, MUFB, and limited company mortgages typically require a minimum 25%–30% deposit.

Question 10

I am a portfolio landlord — can you help?

Accepted Answer

Yes. Portfolio landlords — those owning four or more mortgaged BTL properties — face additional underwriting requirements introduced by the PRA in 2017. Lenders must assess the entire portfolio, not just the property being mortgaged. We work with specialist lenders experienced in portfolio landlord cases and can help you structure your portfolio to maximise borrowing capacity.

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