How it differs from a residential mortgage
The property has to pay for itself. Your income matters, but the rent is what the lending is sized against.
| Residential | Investment | |
|---|---|---|
| Assessed on | Your income and expenditure | Rental coverage, plus your income |
| Maximum loan to value | Up to 90% | Up to 75% |
| Typical rate | Lower | Higher, reflecting the risk profile |
| Repayment method | Usually capital and interest | Interest-only is common, with a repayment strategy |
| Void periods | Not applicable | You cover the payment when the property is empty |
Rental coverage
We test whether the expected rent comfortably exceeds the mortgage payment at a stressed interest rate — not at the rate you are paying today.
- Expected rent is confirmed by the valuer, not by the sales particulars.
- Coverage is assessed at a stressed rate materially above the product rate.
- A shortfall against the coverage test reduces the loan we can offer, or declines it.
- Portfolio landlords are assessed across the whole portfolio, not property by property.
Model the empty months
A property let for ten months of the year has to cover twelve months of payments. Budget for voids, maintenance, letting fees and tax before deciding the yield works.
What we need from you
- A minimum 25% deposit, from an evidenced source.
- Evidence of personal income alongside the projected rent.
- Details of any existing portfolio, including balances, rents and lenders.
- The intended letting arrangement — standard tenancy, corporate let, or short-term.
- For limited company purchases: company documents and personal guarantees from the directors.
Certain arrangements are referred or declined, including properties intended for multiple occupation without the correct licence, and short-term holiday letting in some locations.
Before you commit
- Tax treatment
- Rental income and gains on disposal are taxable, and the treatment of mortgage interest varies by jurisdiction and ownership structure. We cannot give tax advice — take it from a qualified adviser before you buy.
- Personal or company ownership
- The structure affects tax, borrowing terms and administrative burden. It is much easier to choose correctly at the start than to change later.
- Interest-only and the exit
- Interest-only keeps the monthly cost low but repays nothing. You need a credible plan to repay the capital — usually sale or refinance — and we will ask about it.
- Regulation of letting
- Landlord obligations on safety, deposits and energy performance are yours to meet. Non-compliance can affect your insurance and your mortgage.
Next steps
Documents you may also need
Lending Criteria
What we can lend, to whom, and against what property — published in full so you can check before you apply rather than after.
MortgagesToday's Mortgage Rates
Indicative rates across our fixed, variable and specialist mortgage ranges, and the factors that decide which one you are offered.
MortgagesRemortgage & Switch
Move an existing mortgage to us, switch to a new rate, or release equity — and stop paying a reversion rate you never chose.
This document was last updated on 1 August 2026. We publish the current version here at all times; superseded versions are available on request.
If anything on this page is unclear, write to us and we will explain it.