Buy-to-Let Mortgages for Landlords and Investors

Whether you are buying your first rental, expanding a portfolio or refinancing to release equity, the right buy-to-let mortgage protects your yield and your cash flow. Sadi's Commercial Finance arranges buy-to-let finance for individual landlords, limited companies and portfolio investors across the UK, matching your structure to lenders who understand property investment.

We are an NACFB and FIBA member firm specialising in unregulated commercial and investment property finance, with a panel of more than 300 lenders.

Who buy-to-let finance is for

Landlords buying their first or next rental property
Investors holding property through a limited company or SPV
Portfolio landlords with four or more mortgaged properties
HMO and multi-unit block owners
Landlords remortgaging to a better rate or releasing equity for the next purchase
Investors buying property that is not currently mortgageable and needs refurbishing first

What we arrange

Limited company and SPV buy-to-let mortgages
Portfolio landlord mortgages, four or more properties
HMO and multi-unit freehold block finance
Refurbishment and bridge-to-let for properties that are not yet mortgageable
Remortgages and capital raising to fund your next acquisition
Mixed-use and semi-commercial investments

How buy-to-let lending works

It is the rent that matters, not your salary

Residential mortgages are assessed on your income. Buy-to-let is assessed on the rent. Lenders apply a stress test, usually called an interest cover ratio, to check the rental income covers the mortgage payment with a margin at a rate higher than the one you are actually paying.

The stress test

The rental cover requirement commonly sits around 125 percent for basic rate taxpayers and around 145 percent for higher rate taxpayers and limited companies, tested at a stressed rate rather than the pay rate. This is why two properties with the same rent can borrow very different amounts depending on who is buying and how. Longer fixed rates are often stress tested more generously, which is a lever worth knowing about.

Personal name or limited company

Many landlords now buy through an SPV, a limited company set up purely to hold property, because of how mortgage interest is treated for tax. Lenders are entirely comfortable with SPVs and most will want personal guarantees from the directors. Whether it is right for you is a tax question, and one for your accountant rather than your broker.

Interest only or repayment

Most buy-to-let is taken on interest only, which maximises monthly cash flow but leaves the capital outstanding. That is a deliberate strategy for many investors, but the exit needs thinking about, whether that is sale, refinance or repaying from other funds.

Deposit and loan to value

Expect to put in 20 to 25 percent as a minimum, and commonly 25 percent or more for limited company and specialist property. HMOs, multi-unit blocks and unusual properties typically need a larger deposit, because the lender is taking more risk on how easily the asset could be sold. The stress test often bites before the loan to value cap does, so the rent, not the deposit, is frequently what limits your borrowing.

Portfolio landlords

Holding four or more mortgaged rental properties makes you a portfolio landlord in lenders' eyes. From that point, an application is not just about the property you are buying. Lenders assess the whole portfolio, and will want a property schedule, business plan, cash flow and often filed accounts. Turning up prepared with those makes the difference between a smooth application and a stalled one, and it is one of the areas where a broker earns their fee.

What buy-to-let finance costs

Interest. Fixed or tracker. Longer fixes often stress test better, which can mean borrowing more.
Product fee. Either a percentage of the loan or a flat fee. A low rate with a high percentage fee is not always the cheaper deal, particularly on smaller loans.
Valuation. Priced on the property. HMOs and commercial valuations cost more.
Legal fees. Yours, and the lender's on some products.
Early repayment charge. Standard on fixed products. Worth matching the fixed period to how long you actually intend to hold.
Broker fee. Disclosed to you in writing before you commit to anything.

These are indicative and vary by lender, property and structure. Actual terms are confirmed in the formal offer.

Regulated or unregulated

Most buy-to-let lending is unregulated, because the property is an investment rather than your home. That gives professional landlords more flexibility on structure, property type and speed. Lending on a property you or a close family member will live in is a different, regulated product. Unregulated investment and commercial property finance is the area we specialise in.

How to get a buy-to-let mortgage with Sadi's Commercial Finance

Speak to a specialist. Tell us about the property, your structure, whether personal, limited company or SPV, and your goals.
Share your portfolio and deposit. Deposit available, existing portfolio if you are a portfolio landlord, and the property type.
Get matched with a lender. We source specialist lenders comfortable with your structure, including HMOs, multi-unit blocks and SPVs.
Valuation and legal work. The lender instructs a valuation while legal work proceeds in parallel.
Completion. Funds release on completion for your purchase, remortgage or capital raise.

A buy-to-let mortgage we arranged

We arranged a £950,000 interest-only buy-to-let mortgage on a five-year term for a three-unit residential block in the South East, for a portfolio landlord. Read the full case study, or browse all our case studies.

Why use a broker for buy-to-let

The buy-to-let market has split in two. Simple cases in a personal name are well served by the high street. Everything else, meaning limited companies, portfolios, HMOs, multi-unit blocks, ex-local authority stock, flats above shops and short leases, sits with specialist lenders who mostly do not deal with the public directly.

Jaff Sadi spent more than 25 years inside UK high street and commercial banking before founding the firm, approving and declining these applications from the other side. We know which lenders will look at your structure and property before we submit, so you are not collecting declines. One specialist handles your case from first call to completion.

Frequently asked questions

How much deposit do I need for a buy-to-let mortgage?

Typically 20 to 25 percent or more of the property value, and commonly 25 percent or more for limited company borrowing and specialist property such as HMOs.

Can I get a buy-to-let mortgage through a limited company?

Yes. Many landlords borrow through an SPV, a limited company set up to hold property, which can offer tax and planning advantages. Lenders are very comfortable with this structure and usually require personal guarantees.

What counts as a portfolio landlord?

Holding four or more mortgaged rental properties. From that point lenders assess your entire portfolio, not just the property you are buying, so preparation makes applications much smoother.

What is the rental stress test?

Lenders check the rent covers the mortgage payment with a margin, at a rate higher than the one you pay. The requirement commonly sits around 125 percent for basic rate taxpayers and around 145 percent for higher rate taxpayers and limited companies.

Is buy-to-let lending regulated?

Most is unregulated, because the property is an investment rather than your home. Lending on a property you or close family will live in is a different, regulated product.

Can I get a mortgage on an HMO?

Yes, through specialist lenders. Expect a larger deposit, a more detailed valuation and questions about licensing and room sizes.

Can I buy a property that needs refurbishment?

Not usually with a standard buy-to-let mortgage if the property is uninhabitable. The common route is bridging or a refurbishment facility to buy and improve it, then refinance onto a buy-to-let mortgage once it is lettable.

Should I take interest only or repayment?

Most landlords take interest only to protect cash flow, but it leaves the capital outstanding. Repayment costs more monthly and clears the debt. It depends on whether you are holding for income or for capital growth.

Related guides

Speak to a specialist about your property, or apply for funding online.