Buy-to-let mortgages, on real numbers.

Section 24 changed the maths in 2017. Higher-rate taxpayers usually take a serious hit holding buy-to-let in personal name, because mortgage interest is no longer fully deductible against rental income. Limited company SPV (special purpose vehicle) holdings retain full deductibility but bring different rates, set-up cost, and admin. The right answer depends on your tax bracket, time horizon, and exit strategy. We model both side by side before recommending.

25% is the usual minimum. A few lenders accept 20% on stronger profiles or in popular SPV scenarios. Higher deposits open better rates, especially around 35% to 40%. Specialist buy-to-let (HMO, holiday let, ex-local-authority) often requires more.

Lenders calculate whether the rent will cover the mortgage at a stressed interest rate. Most lenders stress at 5.5% to 6.5% with an Interest Cover Ratio of 125% (basic-rate taxpayer or limited company) or 145% (higher-rate personal name). Five-year fixes are sometimes stressed at pay rate, which loosens the maths. We run the calculation up front so you know whether the deal stacks before submitting.

Yes, but the lender pool is narrower. Most lenders prefer applicants who already own their main residence and have some property history. We work with the lenders that take first-time landlords on, including a small number of specialist routes for first-time-buyer-and-first-time-landlord-in-one applications.

Mandatory HMO licensing applies in England and Wales to properties with five or more occupants forming two or more households. Many local authorities operate additional or selective licensing schemes that catch smaller HMOs. Lender appetite for HMO mortgages is narrow and pricing is higher, but gross yields are usually meaningfully better. We handle the lender side. You confirm licensing with your local council before you commit.

Not necessarily. A handful of lenders allow top slicing, where surplus personal income plugs the gap between the actual rent and the stressed requirement. We see the case, we know which lenders top slice, and we re-route. Always worth a conversation before walking away.

Yes. That route is called let-to-buy. You consent-to-let or remortgage your current home onto a buy-to-let product, then take a residential mortgage on the new main home. Two mortgages, two stress tests, and the additional-property surcharge applies on the new purchase. We run the timing and the affordability so they line up.