How to Get a Buy-to-Let Mortgage & Start Investing in Property in 2025

Investing in property remains one of the most popular ways to build long-term wealth in the UK. But if you’re considering becoming a landlord in 2025, understanding buy-to-let mortgages is essential. This guide will walk you through everything you need to know, from eligibility requirements to securing the best mortgage deal.

What Is a Buy-to-Let Mortgage?

A buy-to-let (BTL) mortgage is a type of loan specifically designed for those purchasing a property to rent out rather than live in. Unlike residential mortgages, these loans have:
✔ Higher deposit requirements (typically 25% or more).
✔ Different affordability criteria (based on rental income rather than personal salary).
✔ Interest-only options (meaning lower monthly repayments, but the loan balance remains).

Who Can Get a Buy-to-Let Mortgage in 2025?

To qualify, lenders typically require:
✅ A good credit score.
✅ A minimum income (often £25,000 per year).
✅ A 25%+ deposit.
✅ Projected rental income that covers at least 125-145% of the mortgage payments.

Step-by-Step Guide to Getting a Buy-to-Let Mortgage

1. Check Your Budget & Deposit

Most lenders require at least a 25% deposit. Some high-street lenders offer 80% LTV BTL mortgages, but these come with higher interest rates.

2. Choose Between Interest-Only or Repayment Mortgage

• Interest-only: Lower monthly payments, but you need to pay off the capital at the end of the term.
• Repayment: Higher monthly payments, but you build equity over time.

3. Calculate Rental Yield

Rental yield is crucial to determine if a property is a good investment. Use this formula:
📌 Rental Yield (%) = (Annual Rent ÷ Property Value) × 100

Example: A £250,000 property generating £1,250 per month (£15,000 per year) has a yield of 6%.

4. Apply for a Buy-to-Let Mortgage

Compare mortgage deals or use a broker to find the best lender. You’ll need:
📌 Proof of income.
📌 Property details & expected rental income.
📌 A deposit ready.

5. Purchase & Start Renting

Once the mortgage is approved, complete the purchase, find reliable tenants, and start generating rental income!

Final Thoughts

Buy-to-let mortgages are an excellent way to build wealth, but careful planning is essential. Compare lenders, choose the right property, and factor in running costs to ensure a profitable investment.