Buy to let mortgages are designed for people who want to invest in property and rent it out.
These mortgages are typically interest-only, meaning you pay just the interest each month and repay the full loan at the end of the term.
The amount you can borrow depends on the rental income the property is expected to generate.
Most lenders require that the rent covers the mortgage payments by 125% to 145%, depending on the interest rate used in the stress test.
As a mortgage broker in London, we work with many landlords across the capital, from first-time investors to experienced portfolio owners.
Our mortgage advisors in London are here to explain how buy to let mortgages work, compare lenders, and help you understand which products suit your plans.
What Deposit Do I Need for a Buy to Let in London?
The typical deposit required for a buy to let mortgage in London is 25%. Some lenders may accept slightly less, but this usually comes with higher rates or tighter criteria.
Because property prices in London are higher than the UK average, the deposit needed can be substantial.
For example, a £400,000 property would usually require a deposit of at least £100,000.
This doesn’t include other costs like stamp duty, legal fees, or refurbishment, so it’s important to factor those in early on.
If you’re unsure how much you’ll need upfront, your mortgage advisor in London can walk you through the numbers and help you plan around the property you’re considering.
Can I Get a Buy to Let Mortgage as a First-Time Landlord?
Yes, first-time landlords can apply for buy to let mortgages in London.
While the process is similar, lenders may ask for more detail about your income and credit history, especially if you don’t own another property.
Some lenders require a minimum income, often around £25,000 a year, and may only accept standard rental properties rather than more complex setups like HMOs.
That said, there are plenty of lenders who do work with new landlords.
We provide mortgage advice in London for a wide range of buyers, including those making their very first investment.
Should I Use a Limited Company to Buy?
Buying a property through a limited company is a growing trend, especially for landlords who pay higher rates of income tax.
The structure can offer potential tax benefits, but it isn’t right for everyone.
Some lenders only offer limited company buy to let products through specific intermediaries, and interest rates are often higher than personal options.
There may also be extra costs involved with setting up and running the company.
How Is Rental Income Assessed by Lenders?
Lenders use a method called rental stress testing to check whether the rent will comfortably cover the mortgage.
They’ll look at the estimated rental income, based on a professional valuation, and apply a calculation that reflects potential interest rate rises.
Date Last Edited: January 29, 2026
