Buying or refinancing a rental property
Buy-to-let lending works on different rules to residential borrowing. Tell us about the property and we will introduce you to an adviser at The Finance Seer who handles landlord cases.
Your Local Broker is an introducer and does not give advice. Your enquiry is passed to The Finance Seer Ltd, who are authorised and regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority.
How lenders assess a rental property
Buy-to-let lending leans mainly on the rent the property is expected to produce rather than on your salary. Lenders apply a calculation comparing expected rental income against the mortgage payment, using a stressed rate rather than the one you would actually pay.
That stress test is why a property can look comfortably profitable to you and still fall short for a lender. Personal income often still matters as a supporting factor, and some lenders set a minimum, but the rental calculation usually decides the case.
Personal name or limited company
Landlords increasingly buy through a limited company rather than personally, largely because of how rental profits and finance costs are taxed in each structure. The lending market has followed, and company products are now widely available.
Company ownership is not automatically better. It brings running costs, accounting obligations and a different product range, and moving a property you already own into a company is a sale with the consequences that implies. This is genuinely a question for your accountant alongside your adviser.
Portfolio landlords
Once you hold several mortgaged rental properties, lenders begin assessing your whole portfolio rather than the single property in front of them. They will want to see the wider picture, including how the other properties perform and how much is borrowed across them.
That means the paperwork grows considerably, and lenders differ widely in how they handle larger portfolios. Placing the case with a lender comfortable with your profile matters more here than in almost any other area of borrowing.
Why most buy-to-let sits outside FCA regulation
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority, because they are treated as business lending rather than consumer borrowing. The protections that apply to a residential mortgage do not automatically apply here.
There are exceptions. Where you let to a close family member the mortgage is generally regulated as a consumer buy-to-let, which changes the rules that apply. An adviser at The Finance Seer will tell you which category your situation falls into.
What an adviser will want to know
- The purchase price or current value of the property, and the expected monthly rent
- Whether you are buying personally or through a limited company
- Details of any rental properties you already own and what is borrowed against them
- Proof of your personal income, as many lenders set a minimum
- Photo ID and proof of address
What happens next
- 1
You tell us what you need
One short form. Name, number, postcode and a line about your situation.
- 2
We pass your details on
We send your enquiry to The Finance Seer, who are authorised and regulated by the Financial Conduct Authority.
- 3
An adviser calls you
Usually within one working day. They will ask questions and explain your options.
- 4
You decide what to do next
Any advice comes from The Finance Seer, not from us. There is no obligation to go ahead.
Common questions
- Is a buy-to-let mortgage regulated by the FCA?
- Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Letting to a close family member is usually the exception. An adviser at The Finance Seer will confirm which applies to you.
- Do I need a deposit for a buy-to-let?
- Yes, and lenders generally expect a larger one than for a residential purchase because they treat rental lending as higher risk. The exact requirement varies by lender and by property.
- Can I get a buy-to-let mortgage if I do not own my own home?
- Some lenders will consider first-time landlords who are not homeowners, though the choice is narrower. It is worth speaking to an adviser at The Finance Seer before assuming the door is closed.