Buy-to-Let Mortgages UK (2026)
Specialist lending for rental property investors, assessed differently from a residential mortgage. Here's what changes.
Buy-to-let mortgages are specialist products for landlords buying a property to rent out rather than live in. Most are interest-only rather than repayment, lenders assess affordability against the rental property itself, and stamp duty carries an additional surcharge on top of the standard bands. Loan-to-value, arrangement fees and early repayment charges work the same as any UK mortgage.
Interest-only vs repayment for buy-to-let
Interest-only is more common in buy-to-let than repayment. Each month you pay only the interest on the loan, and repay the capital separately, typically when the property is sold. Repayment mortgages, where each payment covers interest plus some of the capital so the loan is fully cleared by the end of the term, remain the standard choice for residential buyers rather than landlords.
How lenders assess affordability
Rather than lending purely against your personal income, buy-to-let lenders build their offer around affordability criteria specific to the rental property and your position as a landlord. Exactly how each lender weighs this varies, so check current requirements directly rather than assuming a figure. The general loan-to-value mechanic still applies underneath this: a 90% loan-to-value mortgage costs significantly more than a 75% loan-to-value deal, and the most competitive pricing typically starts at 75% loan-to-value. Buy-to-let lenders set their own deposit requirements on top of that pattern, commonly higher than residential minimums, so confirm the figure with the lender.
Stamp duty on buy-to-let and second homes
Standard stamp duty in England and Northern Ireland runs 0% up to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, and 12% above that. Buy-to-let and second-home purchases also carry an additional-homes surcharge on top of these bands. Get the exact combined figure from HMRC or your solicitor before budgeting for a purchase.
Costs and risks landlords should plan for
Arrangement fees typically run £500 to £2,000, payable upfront or added to the loan (adding it means paying interest on the fee for the full term). If you sell or remortgage before your fixed deal ends, expect an early repayment charge of 1 to 5% of the outstanding balance, roughly £2,000 to £10,000 on a £200,000 mortgage. Most fixed-rate deals, buy-to-let included, allow overpayments of up to 10% of the balance per year without penalty, useful if you want to pay down the loan between tenancies.
Related mortgage guides
Questions answered
A specialist mortgage for landlords buying a property to rent out rather than live in. Buy-to-let mortgages are assessed differently from residential ones, with lenders looking closely at the rental property's own viability alongside your finances.
Interest-only is more common in buy-to-let than repayment. You pay only the interest each month and repay the capital separately, typically by selling the property at the end of the term. Repayment, where each payment clears some capital too, remains the standard choice for residential buyers.
Buy-to-let lending is built around affordability criteria specific to the rental property and your position as a landlord, rather than only your personal income. The exact criteria differ by lender, so check current requirements directly.
The underlying mechanic is the same as any UK mortgage: a 90% loan-to-value mortgage costs significantly more than a 75% loan-to-value deal. Buy-to-let lenders set their own deposit requirements on top of this pattern, so confirm the figure with the lender.
Standard stamp duty bands in England and Northern Ireland run 0% up to £250,000, 5% up to £925,000, 10% up to £1.5 million, and 12% above that. An additional-homes surcharge also applies to buy-to-let and second-home purchases on top. Check the combined figure with HMRC or your solicitor.
The same general range as any UK mortgage, typically £500 to £2,000, charged by the lender for setting up the loan. You can usually pay it upfront or add it to the mortgage balance, though adding it means paying interest on the fee for the full term.
Most fixed-rate mortgage deals, buy-to-let included, allow overpayments of up to 10% of the outstanding balance per year without triggering a penalty. Overpaying reduces the balance and can move you into a cheaper loan-to-value band ahead of your next remortgage. Check your specific deal's allowance before overpaying.
Repaying or switching lender inside your fixed period usually triggers an early repayment charge, typically 1 to 5% of the outstanding balance. On a £200,000 mortgage, that's roughly £2,000 to £10,000, so weigh this against any saving from switching before you act.
The general minimum across UK mortgages is 5%, but buy-to-let lenders set their own deposit requirements, which are commonly higher than residential minimums. Rather than assume a figure, check current requirements with the lender, since they vary and change over time.
Fixed rates give certainty, with payments staying the same for the fix period, usually 2 or 5 years, which protects you if rates rise. Variable rates can fall if the Bank of England base rate drops, but most UK borrowers currently choose fixed deals for the security, and that applies to landlords as much as residential buyers.