Buy to Let Property Guide for Landlords: UK 2026

Whether you are looking to become a first-time landlord, with your first buy to let property or have a growing portfolio of properties, we have the answers to the most common questions we get asked, to help you find the right mortgage for your buy to let property to maximise your return on investment.

Buy to Let Property: The Benefits

There are a number of reasons why people choose to invest in property.  Unlike income reliant on employment, rental income can in theory be received in perpetuity , this can be ideal for the self-employed or retired, with many landlords looking at a property portfolio as part of their retirement planning. There is also the possibility that the assets will rise in value over their lifetime, offering a lump sum return when sold or the ability to refinance and release equity on a higher value in the future.

However, due to several changes in legislation it is more crucial than ever to research beforehand and set up your property investments in the most efficient manner.

Limited company vs personal name

Since April 2020, landlords can no longer offset their mortgage interest costs from their rental income. All rental income earned will be taxable in addition to any earned income. Landlords will instead receive a 20% tax credit for their mortgage interest.  This has given rise to a large increase in buy to let property being purchased in a limited company, referred to as a special purpose vehicle’s (SPV). Mortgage interest costs for properties held in a SPV are still tax deductible.  NM Finance cannot provide any direct advice in this area and we always suggest potential purchasers go through their individual circumstances with an accountant. 

How much income do I need for a Buy to Let Mortgage?

As the Buy to Let Mortgage is to be serviced by the rental income, personal income requirements are typically much less stringent compared to residential mortgage applications.  Some lenders will have a minimum income outside of property that you need to prove, some lenders will simply require some level of income to be demonstrated.

How much deposit do I need for a buy to let mortgage?

Typically, most lenders will require at least a 25% deposit for a buy to let mortgage. There are some lenders that can offer products with a smaller deposit but the rates tend to be significantly higher. There is also a background calculation that lenders use to ascertain the loan amount vs rental income. 

What is the maximum amount I can borrow on a buy to let property?

The maximum borrowing available on a BTL property is – in the majority of cases – decided by the rental income only rather than the landlord’s personal income. There can be several different loan amount options available on the same property depending on the landlords overall tax bracket, if the property is owned in personal name or limited company name and what type of mortgage product is taken. 

In general terms, a significantly higher level of lending is usually available if a 5 year fixed rate product is taken. In certain circumstances, surplus personal income can be used to increase the borrowing more than the rental income alone would allow, this is known as ‘top-slicing’.

Do I need a letting agent? Will it make a difference to my buy to let mortgage?

Mortgage lenders will generally have no preference if properties are self-managed or an agent is appointed, however they may ask for an explanation of the managing arrangements if the property is located a long distance form the applicants’ own home.  Potential landlords should consider if it would be a viable use of their time dealing with tenant issues and maintenance directly, or they would get better value having an agent take care of matters, for a monthly cost.

What Stamp Duty do I have to pay on a Buy to Let Property?

In 2016, the government introduced a Stamp Duty Land Tax surcharge for anyone buying an additional property in the UK which now stands at 5%.  This will therefore apply for anyone who owns their own home, or an existing buy to let and is looking to purchase another property.  We would recommend clients check the amount which would be due on any potential purchase and budget this into their deposit figures. A handy calculator can be found here https://www.stampdutycalculator.org.uk/

Pick your tenant target market wisely

It’s important to identify your target tenant market not only for your own research purposes, but because the letting strategy on the property effects the mortgage products available.  Most mainstream lenders will only accept a property let on a single tenancy agreement to a single household or not more than 3 unrelated persons.  If you are considering letting to a larger group of mixed professionals or students for example, on a licenced HMO property or an AIR bnb style holiday let mortgage product which allows this style of letting must be selected, otherwise you are likely to breach the conditions of the mortgage.

What the Renters’ Rights Act means for buy to let landlords

The Renters’ Rights Act came into force in May 2026 and represents the most significant change to the private rented sector in a generation. The headline change is the abolition of Section 21 no-fault evictions. From the start of the Act, landlords can no longer ask a tenant to leave without providing a specific legal reason, with possession now based on statutory grounds under Section 8, covering situations such as serious rent arrears, the landlord’s intention to sell, or anti-social behaviour.

Fixed-term tenancies have also been replaced with open-ended Assured Periodic Tenancies. Any existing Assured Shorthold Tenancy automatically converted to the new format, and anything put in place since May 2026 must follow the new structure from the outset. Alongside this, rent increases are now limited to once per year, with two months’ notice required, and tenants have the right to challenge any increase they consider above the market rate at a tribunal.

There are also new rules around tenant selection and advertising. Landlords can no longer refuse applicants on the basis of benefits status or having children, and cannot unreasonably refuse a request to keep a pet. Properties must be advertised at a fixed asking rent, with no invitation to bid above it. A new Private Rented Sector database is also being introduced, on which both landlords and properties will need to be registered.

For a full breakdown of what has changed and what you need to do, read our detailed guide: What the Renters’ Rights Act means for landlords in 2026

EPC requirements: what landlords need to know

Energy performance is increasingly central to property investment decisions, and the direction of government policy is clear: the minimum EPC standard for rental properties is heading upwards. For landlords making purchase decisions now, the energy efficiency of a property is worth factoring in from the outset, both in terms of compliance further down the line and the cost of bringing a lower-rated property up to standard.

Can I get a buy to let mortgage if I’m a First Time Buyer?

You are able to purchase a buy to let property as a first time buyer, however most lenders will have more stringent requirements in terms of background income and in some cases, the mortgage will be assessed on residential affordability basis. 

Phew, that’s a lot of answers I know. If you’re still wondering about anything in particular, do get in touch and have a chat with one of our advisers who are experts in giving bespoke advice when it comes to Buy to Let Mortgages.