Buy-To-Let
Mortgages
Drummonds Finance Group
Whether you’re buying your first investment property, remortgaging an existing buy-to-let or expanding a portfolio, Drummonds Finance Group compares mortgage options from across the market to find lenders that suit your rental income, property type, ownership structure and long-term plans. We can help with standard buy-to-let, limited company purchases, portfolio landlords, HMOs and more complex investment properties.
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Why Choose Drummonds for Buy-to-Let Mortgages?
✅Whole-of-Market Access
We compare buy-to-let mortgages across the market to find lenders suited to your property, rental income and circumstances.
✅Help With Complex Circumstances
Self-employed income, credit issues or an unusual property can affect your options. We check lender criteria before recommending a route.
✅Limited Company Expertise
We help landlords find suitable limited company mortgage options, considering company structure, lender requirements and borrowing costs.
✅Portfolio Landlord Experience
We assess how your next mortgage fits alongside your existing properties, rental income, borrowing and upcoming renewals.
How do buy-to-let mortgages work today?
Whether this is your first rental or your fifteenth, every buy-to-let mortgage now comes down to three questions. Does the rent pass the lender's stress test? How is the property held, personally or in a company? And which lender's rules suit this particular deal? The answers have shifted more in the last few years than in the decade before, with tougher stress tests, new tax rates for individual landlords from April 2027 and the Renters' Rights Act changing how properties are let.
Lenders base what you can borrow mainly on the rent rather than your salary, but they calculate it in very different ways. Interest coverage ratios, stress rates, top slicing, limited company rules and portfolio limits all vary, so the same property and rent can support very different loans from one lender to the next. Getting that match right is where most of the gains are, for new and experienced landlords alike.
Most buy-to-let mortgages aren't regulated by the Financial Conduct Authority, because they're treated as business lending. The exception is consumer buy-to-let, covered further down this page.
Do I need a minimum income for a buy-to-let mortgage?
Many lenders want you to have a personal income of at least £25,000 a year, alongside the rent. Others have no minimum, particularly for experienced landlords and limited companies. If your income is irregular or you're self-employed, the right lender makes a big difference.
Can I get a buy-to-let mortgage as a first-time landlord?
Yes. Many lenders accept first-time landlords, although some want you to own your own home first, and a few want previous letting experience. Lenders may also ask for a slightly larger deposit or apply stricter rental terms. Our guide to buying your first buy-to-let with no property experience explains which lenders consider you and what they look for.
Can a first-time buyer get a buy-to-let mortgage?
A small number of lenders will lend to first-time buyers who want to buy a property to rent out, usually with a 25% deposit and a minimum income. The choice is limited, so if you're also planning to buy your own home, it's often better to do that first. Our first-time buyer mortgages page covers buying a home to live in.
Can I get a buy-to-let mortgage as a first-time landlord?
Yes. Many lenders accept first-time landlords, although some want you to own your own home first, and a few want previous letting experience. Lenders may also ask for a slightly larger deposit or apply stricter rental terms. Our guide to buying your first buy-to-let with no property experience explains which lenders consider you and what they look for.
Interest only or repayment?
Most landlords choose interest only, because it keeps monthly payments lower and improves cashflow. You'll still owe the full loan at the end of the term, which most landlords plan to repay by selling the property or refinancing. A repayment mortgage costs more each month but builds equity, and some landlords choose part and part. Use our mortgage calculator to compare the payments.
Should I buy in my own name or through a limited company?
It depends mainly on your tax position and your long-term plans. Individual landlords can't deduct mortgage interest from rental income in full and instead get a basic rate tax credit, which hits higher rate taxpayers hardest. Limited companies can treat mortgage interest as a business cost, but the rates are often a little higher and taking money out of the company is taxed separately.
Our limited company buy-to-let page covers the lending side, and our guide to limited company versus personal name buy-to-let compares the two. Always speak to an accountant before deciding, because moving an existing property into a company counts as a sale.
Mortgages for HMOs, student lets and other property types
Houses in multiple occupation, student lets and multi-unit blocks usually achieve higher rents, but fewer lenders cover them and they have their own rules on licensing, experience and room numbers. Our HMO mortgages and student let mortgages pages explain what lenders need.
We also arrange buy-to-let mortgages for flats above shops, mixed-use and commercial property, and for raising money on a rental property you already own outright through an unencumbered property mortgage.
Buy-to-let mortgages for portfolio landlords
If you have four or more mortgaged rental properties, lenders treat you as a portfolio landlord. They'll look at your whole portfolio, usually asking for a property schedule, a business plan and a cashflow forecast, and some cap your total borrowing or average loan-to-value. Our portfolio landlord mortgages page explains how to present your portfolio to get the best terms.
Remortgaging a buy-to-let property
When your fixed rate ends, you can switch to a new deal with your current lender through a product transfer, or remortgage to another lender to get a better rate or release equity for another purchase. Releasing equity is one of the most common ways landlords grow a portfolio, as long as the rent still passes the stress test on the bigger loan.
We arrange product transfers with no broker fee, including with The Mortgage Lender, Fleet Mortgages and BM Solutions, and compare them with the wider market. Our remortgage page covers moving lender, and our guide on fixing or choosing a tracker when your rate ends helps with the next decision.
Renting out your current home
If you're moving and want to keep your current home as a rental, you have two main options. Consent to let is permission from your current lender to rent out the property on your existing mortgage, usually for a limited period. Let to buy is a remortgage onto a buy-to-let mortgage, often to release a deposit for your next home. Our guide to renting out your home on a residential mortgage explains consent to let, and our moving home page covers the purchase side.
What does it cost to buy a buy-to-let property?
Alongside the deposit, budget for stamp duty, legal fees, a valuation, the lender's arrangement fee and any broker fee. In England and Northern Ireland, buying an additional property adds a 5% surcharge to every band of stamp duty, which you can check with our stamp duty calculator. Then there are ongoing costs, including letting agent fees, insurance, maintenance, safety certificates and periods without a tenant.
What tax changes affect landlords?
Individual landlords pay income tax on rental profit, and mortgage interest gets a basic rate tax credit instead of being deducted in full. From April 2027, separate property income tax rates of 22%, 42% and 47% apply to individual landlords, two points above the general rates, and the tax credit on mortgage interest rises to 22% to match. Landlords who hold property through a limited company pay corporation tax instead.
GOV.UK explains how tax on rental income works, and an accountant can tell you how the changes affect you.
How does the Renters' Rights Act affect landlords?
The main changes under the Renters' Rights Act came into force on 1 May 2026. Section 21 "no fault" evictions have ended, new tenancies are rolling periodic tenancies rather than fixed terms, and rent increases are limited to once a year through a set legal process.
Lenders have updated their tenancy requirements to match, so it's worth checking that your lender's terms fit how you let the property. We keep track of these changes across the lenders we use.
Why use a broker for a buy-to-let mortgage?
Buy-to-let lending varies more between lenders than almost any other kind of mortgage. Stress rates, interest coverage ratios, top slicing, minimum incomes, experience rules and limited company criteria all differ, and the right combination can add tens of thousands of pounds to what you can borrow on the same rent.
We're a whole-of-market broker, so we compare high street and specialist buy-to-let lenders side by side and present your application in the way each lender needs to see it.
How the process works
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We talk through your plans, the property, the expected rent and your personal finances.
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We run the rental stress test across lenders to find out what you can borrow and on what terms.
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We recommend the right lender, rate and repayment type, including whether to buy personally or through a company.
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We get a mortgage in principle so you can make offers with confidence.
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We submit your application and manage it through to completion.
Buy-to-let mortgages in Oxford, Bicester and across the UK
Oxford has one of the strongest rental markets in the country, driven by its two universities, its hospitals and its science and technology sector, and Bicester's rapid growth is bringing new rental demand. Our guide to why the right mortgage matters for Oxford HMO investments looks at the local market.
We're based in Wendlebury and help landlords in Oxford, Bicester, Banbury and across the UK, including UK expats and foreign nationals investing in property here.
What is a regulated buy-to-let mortgage?
If you're letting a property to a close family member, or you've become an accidental landlord, for example by inheriting a home or being unable to sell, your mortgage may be regulated by the Financial Conduct Authority. Regulated and consumer buy-to-let mortgages carry extra protections and have their own lender rules, and we'll tell you which applies before you apply.
Specialist Mortgages
Not every mortgage fits a lender's computer model. Much of our work at Drummonds Finance Group is with clients who have been turned down elsewhere or told their case is too complicated. We work with clients across the UK by phone and video, and we know which lenders will look at each situation properly.
Author
Written by Liam Drummond CII (MP), owner and named mortgage broker at Drummonds Finance Group. Member of the Personal Finance Society, the Society of Mortgage Professionals and the Chartered Insurance Institute.
On this page we have explained how buy-to-let mortgages work today, how much deposit you need and how lenders work out what you can borrow from the rent. We have covered minimum incomes, first-time landlords and first-time buyers, buying personally or through a limited company, interest only and repayment, HMOs and other property types, portfolio landlords, remortgaging and product transfers, renting out your current home, regulated buy-to-let, buying costs, landlord tax changes, the Renters' Rights Act, and how we arrange your mortgage from start to finish.