Best buy to let mortgage lenders in 2025

Investing in property can be a powerful way to grow your business wealth and generate long term income. But to make the most of a buy to let investment, you’ll need the right finance in place. That’s where buy to let mortgage lenders come in.

In this guide, we’ll explain what buy to let mortgages are, how they work, who offers them in the UK, and how to compare lenders easily.

What is a buy to let mortgage?

A buy to let mortgage is a loan used to purchase a property you intend to rent out, rather than live in yourself. These mortgages are designed for landlords, whether you’re a first time investor, a company director, or an established property business expanding your portfolio. You can take out a buy to let mortgage as:

An individual landlord, or
A limited company (sometimes called a “limited company buy to let”).

How buy to let mortgages work

A buy to let mortgage works a little differently from a standard residential mortgage because the property you’re buying isn’t for you to live in, it’s an investment that’s expected to generate rental income. When you apply for a buy to let mortgage, the lender will look closely at how much rent the property is likely to bring in each month. This expected rental income is usually the main factor that determines how much you can borrow. Most lenders want the rent to cover at least 125% monthly mortgage interest. That extra margin is designed to protect both you and the lender in case of rent gaps or interest rate increases.

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

You’ll also usually need a larger deposit than you would for a residential mortgage, this is often at least 25% of the property’s value. This is due to a slightly higher risk for the lender in comparison to residential mortgages. There may be vacant periods and there is a risk of tenants being unable to pay. A larger deposit means there is a reduced risk to the lender, so they can feel more confident in lending large sums. The maximum loan to value (LTV) for most buy to let mortgages tends to sit around 75%.

What affects your eligibility for a buy to let mortgage?

Buy to let mortgages are designed around the property’s potential to earn income, not your salary. The stronger your rental yield, the more borrowing power you’re likely to have.

Lenders will still check your overall financial position and credit history as a part of their assessment, so a strong personal will position you well to access better rates. Your personal income plays a smaller role than in a standard mortgage, but it can still affect your eligibility, especially if rental income doesn’t fully meet the lender’s coverage requirements.

Types of buy to let mortgage lenders

There are three main types of buy to let mortgage lenders in the UK:

High street banks
High street Banks include familiar names like Barclays, HSBC, Lloyds Bank, and NatWest. They tend to offer competitive rates but usually have stricter lending criteria.

Specialist lenders
Specialist lenders focus primarily on the needs of property investors. They’re usually more flexible when assessing complex situations, such as portfolio landlords, unusual property types, or limited company structures. Their products are designed to accommodate more nuanced investment strategies.

Challenger and alternative lenders
These lenders provide tailored, case-by-case solutions for borrowers who may not meet traditional lending requirements. They often take a more holistic view of an applicant’s financial profile and can cater to unique circumstances or niche investment opportunities.

Through Capitalise, you can access all three types of buy to let mortgage lenders, elping you find the most suitable option quickly and efficiently.

Best buy to let mortgage lenders in the UK (2025)

Lender	Typical Max LTV	Loan amounts	Key features
Barclays	75%	Up to £2 million	You’ll need a minimum annual income of £25,000, making it a competitive option for individual landlords.
NatWest	75%	£25,000 - £3.5 million	Interest only mortgages available. Flexible term lengths, good for first time landlords.
Paragon Bank	80%	Maximum aggregate borrowing of £10,000,000	Suitable for all experience levels, from first time landlords, to portfolio holders and multi unit blocks.
Aldermore	65-80%	£25,000 - £10,000,000	Option to combine up to 30 properties in one application, to streamline an entire portfolio. Suitable for complex or company structures
Together Money	75%	£30,000 - £4.5 million	No limit on the number of properties. A wide range of property types are eligible, including holiday lets.

How to choose the best buy to let mortgage lender

When choosing a buy to let mortgage lender, it helps to think about a few key areas. These will affect both how much you can borrow and how much the mortgage will cost you over time.

Interest rate
Look at whether the mortgage has a fixed or variable rate. A fixed rate gives you predictable payments, while a variable rate can change over time. Make sure you also check the APRC, which shows the overall cost of the mortgage, not just the starting rate.
Fees
Every mortgage comes with additional costs, these include arrangement fees, valuation fees, legal fees and early repayment charges. It’s important to look at the total cost of these. A mortgage with a low rate can still be expensive once the fees are all added up.
Flexibility
Some lenders are more flexible than others. If you plan to buy through a limited company or you already own several rental properties, you may need a lender who accepts these situations. The same applies if the property is unusual, such as an HMO or a flat above a shop.

By taking time to compare these areas across several lenders, you’ll be in a much stronger position to choose a mortgage that fits both your budget and your investment plans. When you work with an expert, such as a Capitalise funding specialist, they can guide you through all the costs and requirements, helping you make a confident decision with all the information you need.

Helping you find the right buy to let mortgage lender

Finding the right buy to let mortgage lender can be time consuming, especially with a market that changes so often. Through Capitalise, you can:

Compare options from a network multiple finance providers
Access buy to let, commercial, and other property finance solutions in one place
Work with a dedicated funding specialist who will help match you to the most suitable lender and guide you through every step of the way.

Whether you’re buying your first investment property, or expanding an existing portfolio, we can help you secure finance that supports your long term business goals. Apply today to get started.