Buy-to-let Mortgages

What is a buy-to-let mortgage?

A buy-to-let mortgage is a financial product designed for individuals or investors who wish to purchase residential property for the specific purpose of renting it out to tenants.

What is a buy-to-let mortgage?

  • Unlike a standard residential mortgage, a buy-to-let mortgage is tailored to the unique characteristics of rental property investment.
  • The primary purpose of a buy-to-let mortgage is to finance a property with the intention of generating rental income. Borrowers typically seek to build a property portfolio to earn a return on their investment.
  • Lenders evaluate buy-to-let mortgage applications based on the potential rental income of the property, the borrower’s financial situation, and their ability to manage the investment. The borrower’s personal income may be considered, but the emphasis is often on the property’s income-generating potential.
  • Buy-to-let mortgages often require a higher deposit or down payment compared to residential mortgages. The loan amount is typically expressed as a percentage of the property’s value.
  • Interest rates on buy-to-let mortgages can vary, and they may be higher than those for residential mortgages. The rates may be fixed or variable, and the choice depends on the borrower’s preference and risk tolerance.
  • Like any investment, buy-to-let carries risks, including variations in property values, economic conditions, and changes in rental demand. Investors should carefully consider these factors and conduct due diligence before entering the buy-to-let market.

An example

Sarah, an investor interested in real estate. She identifies a residential property in a popular neighbourhood with high rental demand.

1. Property purchase:
Sarah decides to purchase the property as an investment to generate rental income. The property’s purchase price is £200,000.

2. Buy-to-let mortgage application:
Instead of a traditional residential mortgage, Sarah applies for a buy-to-let mortgage from a financial institution. The lender assesses her eligibility based on her financial situation and the potential rental income.

3. Loan Approval:
The lender approves Sarah’s buy-to-let mortgage. They agree on a loan amount of £150,000 at an interest rate of 5%, with a loan term of 25 years.

4. Rental income:
Sarah finds tenants for the property, and they agree to a monthly rent of £1,000. The rental income helps cover the mortgage repayments.

5. Mortgage repayments:
Sarah makes monthly mortgage repayments to the lender, including both principal and interest. The monthly repayment amount is determined by the terms of the buy-to-let mortgage.

Click below to begin the process of applying for a buy-to-let mortgage

The types of finance we can offer

We can offer a wide range of funding options that include the following:

Business Loans

Let us help source the right business loans for you

Commercial Mortgages

Funding for commercial mortgages and buy-to-let purchases

Property Development

A range of development finance options catered to your specific needs

Bridging Finance

Funding for that urgent purchase or refinance when time is tight

Residential Mortgages

For individuals who wish to purchase their own home

Invoice Finance

Keep cash flow moving and get paid quicker for your products and services

Portfolio Landlord

For individuals or investors who own a portfolio of properties

Asset Finance

Sourcing the equipment you need without disrupting your cash flow

Buy-To-Let Mortgages

For individuals or investors who wish to purchase residential property to let

Multiply Finance Ltd is a member of the National Association of Commercial Finance Brokers.

Multiply Finance Ltd is a member of the Federation of Small Businesses.

Get In Touch

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Multiply Finance Limited,
Censeo House,
6 St Peter's Street,
St. Albans,


Multiply Finance Limited trading as Multiply Finance is an Appointed Representative of Connect IFA Limited 441505 which is Authorised and Regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 929261. The FCA do not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. Your property may be repossessed if you do not keep up repayments on your mortgage. There will be a fee for mortgage advice, the precise amount will depend upon your circumstances.

Multiply Finance Limited Registered Address: Egale 1 80 St Albans Road, Watford, Herts, England, WD17 1DL Registered in England and Wales No: 12561172

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Commission disclosure: We are a credit broker and not a lender. We have access to an extensive range of lenders. Once we have assessed your needs, we will recommend a lender(s) that provides suitable products to meet your personal circumstances and requirements, though you are not obliged to take our advice or recommendation. Whichever lender we introduce you to, we will typically receive commission from them after completion of the transaction. The amount of commission we receive will normally be a fixed percentage of the amount you borrow from the lender. Commission paid to us may vary in amount depending on the lender and product. The lenders we work with pay commission at different rates. However, the amount of commission that we receive from a lender does not have an effect on the amount that you pay to that lender under your credit agreement.

How to make a complaint - It is our intention to provide you with a high level of customer service at all times. If there is an occasion when we do not meet these standards and you wish to register a complaint, please write to: Compliance Department; Connect IFA Ltd, 39 Station Lane, Hornchurch, RM12 6JL or call: 01708 676110. If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.