Buy-To-Let

What is a Buy To Let Mortgage?

If you're purchasing a property to rent out to tenants and don’t have the funds to buy it outright, you’ll need a buy-to-let mortgage. A buy-to-let mortgage is a type of property loan specifically designed for landlords and property investors. It enables you to purchase a property such as a house or apartment with the intention of letting it out for rental income and long-term capital growth.

Most buy-to-let mortgages are arranged on an interest-only basis. This means your monthly payments cover only the interest on the loan, not the capital. The original loan amount remains outstanding until the end of the mortgage term, at which point it is typically repaid through the sale of the property or via alternative funding.

Alternatively, you can opt for a repayment mortgage, where both the interest and the capital are paid off over the life of the loan. Once repaid in full, you may:

• Retain the property and benefit from ongoing rental income

• Sell the property and keep the full proceeds

Keep in mind that monthly payments on a repayment mortgage are higher, and therefore only suitable if the rental income is sufficient to cover the full repayment amount.

In recent years, buy-to-let mortgage lenders have significantly tightened their criteria, with rental income calculations becoming more stringent than ever. As a result, both new and experienced investors are increasingly exploring alternative and innovative strategies to grow or begin their rental property portfolios.

At Prestigious Property Finance, our specialist buy-to-let mortgage advisers take a holistic view of your financial position before recommending the most suitable solution. This may include using personal income to supplement rental shortfalls or structuring the purchase through a Limited Company (SPV) for greater tax efficiency and borrowing flexibility.

As a valued client, you benefit from our expertise in navigating this evolving market—unlocking smarter, more efficient pathways to property investment.

At Prestigious Property Finance, we simplify the process of securing a buy-to-let mortgage, whether you're purchasing your first rental property or expanding a well established portfolio. Our tailored approach ensures that each application aligns with your investment strategy and long-term goals.