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Buy-to-Let Mortgages
Expert Advice for Landlords

Looking to Invest in Property? Get Professional Buy-to-Let Mortgage Advice from Mather & Murray Financial.

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Buy-to-let mortgages and advice

What Landlords Need to Consider

Investing in property can be an effective way to build wealth, generate rental income, and expand a property portfolio. However, securing the right buy-to-let mortgage is essential to ensure long-term success.

Whether you are a first-time landlord or an experienced investor, having access to the best mortgage deals and structuring your investment in the most tax-efficient way can make a significant difference to your financial returns.

A buy-to-let mortgage is a loan designed for purchasing property that will be rented out to tenants. Unlike residential mortgages, where affordability is based on personal income, buy-to-let mortgages are primarily assessed on the rental income the property can generate.

Most lenders require:

A minimum deposit of 20 to 25 percent, although higher deposits can secure better rates.
Rental income to be at least 125 to 145 percent of the monthly mortgage payment.
A strong credit history and proof of financial stability.

Since mortgage interest rates and lender requirements change frequently, professional mortgage advice is crucial to securing the best deal.

Buy-to-let mortgages provide a range of benefits, including:

Generating a passive rental income
Potential capital growth as property values increase over time
Tax benefits, such as offsetting certain expenses against rental income
The ability to build a property portfolio and expand investment opportunities

However, buy-to-let mortgages typically come with higher interest rates and deposit requirements than residential mortgages, so structuring your investment correctly is essential.

One of the biggest decisions landlords face is whether to buy property in their personal name or through a Special Purpose Vehicle (SPV)—a limited company specifically created for property investment.

Buying as an Individual

Pros:

The mortgage application process is generally simpler
No additional costs for setting up and running a company
Lower interest rates compared to SPV buy-to-let mortgages

Cons:

Mortgage interest relief is restricted to basic rate relief at 20 percent
Higher personal tax on rental income
Properties owned personally form part of the individual’s estate for inheritance tax

Buying Through a Limited Company (SPV)

Pros:

Full tax relief on mortgage interest, reducing taxable profits
Corporation tax on profits is lower than higher-rate income tax
Easier inheritance planning, as company shares can be transferred more efficiently than properties

Cons:

Higher mortgage interest rates compared to personal buy-to-let mortgages
Additional administrative work and costs associated with running a company
Withdrawing profits from the company is subject to tax, requiring careful financial planning

The right approach depends on your investment strategy, tax situation, and long-term goals. Our expert mortgage advisers can help you decide which structure best suits your needs.

Ready to get started?...

Buy to let mortgages and advice

Types of Buy-to-Let Mortgages

There are different types of buy-to-let mortgages, depending on your investment goals.

Standard Buy-to-Let Mortgages

Suitable for most landlords renting out a single property
Typically interest-only, meaning lower monthly payments

HMO (House in Multiple Occupation) Mortgages

Designed for properties rented to multiple tenants, such as student housing
Can offer higher rental yields but have stricter lending criteria

Limited Company Buy-to-Let Mortgages

For landlords purchasing property through a company (SPV)
Typically requires a larger deposit and higher interest rates

Holiday Let Mortgages

Designed for short-term rental properties, such as those listed on Airbnb
Rental income assessment differs from standard buy-to-let mortgages

Refurbishment Buy-to-Let Mortgages

Suitable for landlords looking to renovate and rent out properties
Often involves short-term bridging finance followed by a long-term mortgage

Book your free consultation today to get started.

Why Mather & Murray

How Much Can You Borrow on a Buy-to-Let Mortgage?

Lenders assess affordability based on the rental income your property can generate.

A common requirement is that rental income must be at least 125 to 145 percent of the mortgage repayment. Some lenders may also consider an applicant’s personal income when assessing affordability.

Our advisers will guide you through the lending criteria and help you maximise your borrowing potential.

Free Initial Consultation
We assess your:

Investment goals and financial position
Preferred mortgage structure (personal or SPV)
Expected rental income and deposit

Finding the Best Mortgage Deal

We compare mortgage products from the entire market, securing the most competitive interest rates and terms.

Mortgage Application & Approval

We manage the application process, liaising with lenders, solicitors, and surveyors to ensure everything runs smoothly.

Mortgage Completion & Property Rental

Once your mortgage is approved, you can complete your purchase and start generating rental income.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Get in touch

Start your free consultation

There's no obligation and no cost to your initial consultation. Simply fill in the form and one of our advisers will be in touch, usually within one working day.

Phone

01793 261626

info@matherandmurray.co.uk

Office hours

Mon–Fri 9am–5pm

Address

The Old Police Station, 91 High St, Cricklade, Swindon SN6 6DF