mortgages

Buy-to-Let

Building Wealth Through Property with Strategic Support

Investing in property can be a powerful way to generate long-term income and capital growth, but becoming a landlord is not without its complexities. A Buy-to-Let (BTL) mortgage is a specific type of lending designed for individuals purchasing residential property to rent out, rather than to live in themselves.

While the potential financial rewards are significant, property investment requires careful planning, a strong understanding of market dynamics, and a clear view of both risks and responsibilities.

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Key Differences in Buy-to-Let Mortgages

Buy-to-Let mortgages differ from standard residential mortgages in several important ways:

Rental Income Assessment:
Approval is often based primarily on the property’s projected rental income, rather than your personal income. Some lenders do not assess personal income at all, particularly for experienced landlords.

Higher Interest Rates:
BTL mortgages typically come with slightly higher interest rates due to the increased risk profile.

Larger Deposit Required:
Most lenders require a minimum deposit of 20–25% of the property’s value, and in some cases, more.

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Understanding the True Cost of Buy-to-Let

BTL ownership involves ongoing financial commitments beyond mortgage repayments. To remain profitable and resilient to periods of vacancy or unexpected expenses, aim for rental income of at least 125–135% of your mortgage interest payments.

Key ongoing costs may include:

  • Property maintenance and repairs.

  • Letting agent fees (typically 10–15% of monthly rent).

  • Ground rent and service charges (for leasehold properties).

  • Landlord insurance (including legal and rent protection cover).

  • Buildings and contents insurance.

  • Furnishings and appliance maintenance.

  • Gas and electrical safety compliance.

  • Redecoration and upgrades between tenancies.

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Investment Strategy: Income or Growth?

Before investing, it’s essential to define your objective:

  • Are you looking for monthly rental income to supplement your earnings?

  • Or are you aiming for capital growth over time as the property increases in value?

Your strategy will influence key decisions such as property type, location, tenant profile, and mortgage structure.

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Location & Demand: Do Your Research

Success in buy-to-let investing often comes down to choosing the right property in the right location. Consult with local letting agents to understand:

  • Demand levels in different neighbourhoods.

  • Tenant profiles (e.g., professionals, students, families).

  • Proximity to amenities, transport links, and universities.

  • Expected rental yields and average occupancy times.

A well-informed purchase is far more likely to generate sustainable returns and attract reliable tenants.

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Why Work With Us?

At Bakerhill, we offer specialist advice tailored to both new and experienced landlords. We’ll help you:

  • Secure the right mortgage structure for your investment.

  • Compare products across a wide panel of lenders.

  • Evaluate cash flow, yield, and tax considerations.

  • Understand regulatory responsibilities as a landlord.

Ready to invest with clarity and confidence?

Speak to our experienced mortgage team about Buy to Let solutions today.