Property investment finance
Buy to Let
From your first rental property to a growing portfolio, we offer specialist buy-to-let finance — including day 1 remortgages, ex-local authority and deck access flats, above-commercial units, complex limited company structures, HMOs, and holiday lets.
Could your next buy-to-let earn more as an HMO?
Letting by the room often out-earns a single let on the same property. Use our free Deal Appraiser in the HMO Investors Hub to model room rents, running costs and refinance scenarios before you buy.
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Tailored advice for your situation
How buy-to-let mortgages differ from residential
Buy-to-let mortgages are assessed differently to residential loans. Lenders focus on the rental income the property will generate, typically requiring it to cover 125–145% of the mortgage payment at a notional interest rate, rather than your personal income alone.
Interest rates and fees are usually higher than residential mortgages, and most BTL loans are interest-only. The minimum deposit is typically 25%, though some specialist lenders accept less for experienced landlords.
Limited company vs personal name
Many landlords now buy through a limited company (SPV) to offset mortgage interest against rental income for tax purposes. Whether this suits you depends on your income tax band, portfolio size, and long-term plans — we can't give tax advice, but we can explain the mortgage differences.
Limited company BTL rates are typically slightly higher than individual rates, and some lenders only lend to experienced landlords via a company. We'll match you to lenders whose criteria fit your structure and experience level.
- SPV (Special Purpose Vehicle) limited company structures
- Personal name buy-to-let for smaller portfolios
- Tax-efficient borrowing for higher-rate taxpayers
Specialist rental property types
Not every rental fits a standard BTL mould. Houses in Multiple Occupation (HMOs), holiday lets, and multi-unit freehold blocks all have specialist lenders and criteria. Rental yield calculations and licensing requirements differ for each.
We work with specialist lenders who understand these property types, so you get finance structured correctly from the start — whether it's a student HMO, a coastal holiday let, or a growing portfolio approaching portfolio landlord thresholds.
Non-standard construction — ex-council, deck access & above commercial
Many high-street lenders won't touch ex-local authority flats, deck access blocks, or flats above commercial premises — yet these are exactly the properties that can offer strong rental yields. We work with investor-led lenders who take a common-sense view of construction type and location, and accept properties the high street rejects.
The same lender will consider the day the purchase completes as day 1 for a remortgage, enabling a same-day refinance (a "day 1 remortgage") to pull equity back out of a cash purchase or refinance a bridging loan with no waiting period.
- Ex-local authority flats and houses — accepted
- Deck access and corridor-style blocks — accepted
- Flats above commercial premises (shops, takeaways, offices) — considered
- Day 1 remortgage — refinance from completion day
Complex limited company structures
A simple SPV with one or two directors is straightforward, but portfolios are often held in more complex structures: multi-entity groups, trading companies, trusts, or companies with multiple shareholders and differing classes of shares. Many lenders only cater for the simplest setup — we know the ones that go further.
Whether you're consolidating mixed ownership, borrowing through a group structure, or financing a holding company with several SPVs beneath it, we'll match you to a lender whose legal team can work with your structure rather than forcing you to simplify it before you can borrow.
- Multi-entity and group SPV structures
- Trading companies and holding companies considered
- Trusts and partnerships with corporate members
- Multiple shareholders and complex share classes
Flatted portfolio exposure
Lenders cap how much of a portfolio can be made up of flats, because flats are seen as higher risk in a downturn. Our investor-led lender offers some of the most generous exposure limits on the market, based on the size of the block or the number of units you hold.
This means you can build a flatted portfolio beyond what most lenders allow, or refinance an existing concentration of flats that other brokers struggle to place.
- Up to 100% exposure on a block of 4 flats
- Up to 75% exposure across 5–10 units
- Up to 50% exposure across 11–20 units
- Generous limits versus typical high-street lenders
Landlord tax changes
Landlords in England, Wales and Northern Ireland face a significant increase in Income Tax on rental profits from 6 April 2027, following the announcements in the Autumn Budget 2026.
The government has confirmed that landlords who own rental properties personally, rather than through limited companies, will face an increase of four percentage points across all three Income Tax bands.
1. New Income Tax rates for landlords
| Tax band | Current rate | From 6 April 2027 |
|---|---|---|
| Basic rate | 20% | 24% |
| Higher rate | 40% | 44% |
| Additional rate | 45% | 49% |
The original Autumn Budget 2025 announcement proposed increases to 22%, 42% and 47%. However, the October 2026 Budget introduced a further two-percentage-point increase, bringing the total rise to four percentage points.
These rates apply to taxable property income, not the total rent collected.
2. How much more tax will landlords pay?
The following examples assume all rental profits fall within one tax band, with no changes to allowances or other reliefs.
| Annual taxable rental profit | Current tax (20%) | New tax (24%) | Extra annually |
|---|---|---|---|
| £5,000 | £1,000 | £1,200 | £200 |
| £10,000 | £2,000 | £2,400 | £400 |
| £15,000 | £3,000 | £3,600 | £600 |
| £20,000 | £4,000 | £4,800 | £800 |
| £30,000 | £6,000 | £7,200 | £1,200 |
For a higher-rate taxpayer with £20,000 of taxable rental profits, the tax bill increases from £8,000 to £8,800 annually.
Calculate the additional landlord tax
Equivalent to £67 per month
Illustrative calculation only. Assumes all taxable profits fall within the selected band, before mortgage interest tax relief and other personal tax adjustments.
3. What happens to mortgage interest relief?
This is particularly important for landlords with buy-to-let mortgages. Individual residential landlords generally cannot deduct mortgage interest as an ordinary rental expense. Instead, they receive a tax reduction based on qualifying finance costs, subject to restrictions.
The increase in property tax rates does not automatically mean landlords can deduct all their mortgage interest. Consequently, landlords with substantial mortgage borrowing could experience a disproportionate reduction in actual cash flow compared with their rental income.
The detailed interaction between the new property basic rate and finance-cost relief should be checked against the final legislation and HMRC guidance.
4. Will limited company landlords be affected?
Landlords operating through limited companies are treated differently.
- Rental profits earned by a company are generally subject to Corporation Tax rather than the new personal property Income Tax rates
- Corporation Tax rates are currently 19% for qualifying small profits and 25% at the main rate, with marginal relief where applicable
- Shareholders may face further tax when extracting profits as dividends or salary
- Transferring existing properties into a limited company may trigger Capital Gains Tax, Stamp Duty Land Tax and mortgage refinancing costs
For portfolio landlords, particularly those retaining profits for further investment, limited company ownership may warrant consideration. However, incorporation is not automatically more tax-efficient.
5. Who will be most affected?
- Personally owned buy-to-let portfolios — multiple properties can generate substantial taxable rental profits
- Higher-rate taxpayers — landlords with employment, self-employment or pension income alongside rental profits may face the 44% property rate
- Highly leveraged landlords — mortgage payments can significantly reduce actual cash flow even where taxable profits remain substantial
- HMO landlords — higher rental income may result in greater taxable profits, although legitimate operating costs remain relevant
- Joint property owners — the allocation of rental income between owners can affect their respective tax liabilities
HMRC estimates that approximately 2.4 million landlords will be affected by the property income tax changes by 2031–32.
6. What should landlords consider before April 2027?
Landlords should review projected rental profits, mortgage finance costs, property maintenance expenditure and their personal tax position before the new tax year.
For those with multiple properties, it may be appropriate to assess whether refinancing, restructuring ownership or purchasing future investments through a limited company could improve long-term returns.
We can help landlords review their buy-to-let mortgages, HMO finance, portfolio borrowing and limited company mortgage options alongside independent tax advice.
Important: these measures have been announced for the 2027–28 tax year, with further legislation proposed through Finance Bill 2026–27. Mortgage321 cannot give tax advice — we can explain the mortgage and ownership-structure options and work alongside your accountant.
Common Questions
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