Question 1

What rental coverage ratio do lenders require?

Accepted Answer

Most lenders require 125-145% rental coverage at a stressed rate (typically 5.5-8.5%). This means rent must cover 125-145% of the mortgage payment when calculated at the stress rate, not the actual rate.

Question 2

Do I need minimum personal income for a buy to let mortgage?

Accepted Answer

Many lenders require minimum personal income of £25,000-£50,000, though some have no income requirement at all. First-time landlords often face higher thresholds. Limited company applications may have different requirements.

Question 3

What are portfolio landlord rules?

Accepted Answer

Lenders with portfolio landlord criteria (typically 4+ properties) require full disclosure of your entire portfolio, including rental income, mortgage details, and valuations. Some lenders prefer portfolio landlords, while others avoid them.

Question 4

Can first-time landlords get buy to let mortgages?

Accepted Answer

Yes, though options are more limited. Many lenders require you to own your own home first, and some have higher income requirements or lower LTV caps for first-time landlords. Specialist products exist specifically for new landlords.

Question 5

What's the maximum LTV for buy to let?

Accepted Answer

Standard BTL products typically cap at 75-80% LTV, though some specialist lenders offer up to 85%. Higher LTV products usually require excellent credit, higher rental coverage, and may have higher rates.

Buy to Let Mortgage Criteria

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