Investing in property to rent out is a significant financial commitment—and choosing the right buy-to-let mortgage solution is crucial. Whether you’re purchasing your first rental property or you’re an experienced portfolio landlord, Orchard Mortgage Solutions is here to help you navigate the process from start to finish.

We specialise in arranging buy-to-let purchase mortgages and buy-to-let remortgages for both individual landlords and limited company landlords. With access to a wide range of lenders, we can tailor a mortgage solution that fits your goals, income structure, and investment strategy.

What Is a Buy-to-Let Mortgage?

A buy-to-let mortgage is a type of loan specifically designed for people who want to buy a property as an investment rather than a residence. If your intention is to rent the property out, you must apply for a buy-to-let mortgage rather than a residential one. Using a standard residential mortgage to finance a rental property is not permitted by lenders.

How Do Buy-to-Let Mortgages Work?

In most cases, buy-to-let mortgages are interest-only. This means that your monthly payments only cover the interest on the loan—you do not reduce the capital balance over time. Instead, the full loan amount becomes repayable at the end of the mortgage term. Typically, landlords plan to repay the loan by selling the property or by refinancing with a new mortgage.

This structure can be tax-efficient, especially for limited company landlords, but it does require long-term planning and a clear exit strategy.

Buy-to-Let Mortgages for Limited Companies

Limited company buy-to-let mortgages have become increasingly popular among landlords due to changes in tax legislation. When holding property in a limited company structure (often referred to as a Special Purpose Vehicle or SPV), you may benefit from:

• Corporation tax instead of personal income tax on profits
• The ability to offset mortgage interest as a business expense
• Potential long-term inheritance planning advantages

At Orchard Mortgage Solutions, we work with lenders that specialise in buy-to-let mortgages for limited companies, offering competitive rates and flexible underwriting.

Buy-to-Let Mortgages for Individual Landlords

If you’re buying a rental property in your personal name, we can help you secure a buy-to-let mortgage for sole applicants or joint individual applications. We’ll assess your affordability, expected rental income, and long-term goals to identify the most suitable lender and product for your circumstances.

Portfolio Landlords – What You Need to Know

A portfolio landlord is defined as someone with four or more buy-to-let properties. Lenders often apply stricter criteria for these borrowers. That includes in-depth reviews of your existing portfolio’s performance, rental yields, and overall debt exposure.

We understand the complexities involved and have strong relationships with lenders who cater specifically to professional landlords with larger portfolios. Whether you’re looking to refinance your existing portfolio or add new properties, we can support your growth.

Buy-to-Let Costs and Deposits Explained

When it comes to buy-to-let mortgages, the associated costs tend to be higher than those for standard residential mortgages. Here’s what to expect:

💰 Deposit Requirements

• Typically, you’ll need a minimum deposit of 25%, though some lenders may require 30% or even 40%, especially for limited company structures or higher-risk borrowers.
• A larger deposit may result in lower monthly payments and better interest rates.

💸 Interest Rates

• Interest rates vary based on loan type, your financial profile, the rental income potential, and whether you’re borrowing as an individual or company.
• Rates may be higher than standard mortgages due to increased risk.

🧾 Additional Costs

• Stamp Duty Surcharge: An extra 3% applies to second homes and investment properties.
• Letting Agent Fees: These can range from 8–15% of your monthly rent.
• Landlord Insurance & Building Insurance: Required by most lenders.
• Income Tax or Corporation Tax: You’ll need to pay tax on rental income, though allowable expenses can offset this.
• Legal and Valuation Fees: These are often higher for buy-to-let properties.

Types of Buy-to-Let Mortgages

We can help you find the right mortgage type for your investment strategy:

✅ Fixed-Rate Buy-to-Let Mortgages

Ideal for budgeting, these loans offer fixed monthly payments for 2, 3, 5, or even 10 years.

📉 Tracker Buy-to-Let Mortgages

These follow the Bank of England base rate. Your payments may increase or decrease with interest rate changes.

🔄 Discounted Variable Mortgages

A variable rate mortgage that starts lower than the lender’s standard variable rate. However, payments can fluctuate.

What Happens at the End of the Term?

At the end of an interest-only buy-to-let mortgage, the capital loan must be repaid in full. You typically have two options:

1. Sell the property to repay the mortgage. Any increase in property value could result in capital gains.
2. Refinance or remortgage to another lender to continue renting the property.

Planning your exit strategy is essential. Our team can help you review your options well before the term ends.

Eligibility Criteria for Buy-to-Let Mortgages

Each lender has their own criteria, but typically you’ll need to:

• Be aged 21 or over
• Earn at least £25,000 annually (individual applications)
• Have a clean credit history
• Provide evidence of rental income potential (typically 125%–145% of monthly mortgage payments)

For limited companies, lenders assess the company directors and may ask for personal guarantees.

Landlord Responsibilities

Owning a rental property comes with legal and financial obligations. These include:

• Ensuring the property is safe, with valid EPC, Gas Safety, and Electrical Safety certificates
• Keeping up with maintenance and repairs
• Protecting tenant deposits in a government-backed scheme
• Following rules on eviction and notice periods

You may also need a House in Multiple Occupation (HMO) licence if you’re renting to multiple tenants.

Why Choose Orchard Mortgage Solutions?

At Orchard Mortgage Solutions, we offer:

• Specialist advice for buy-to-let mortgages for limited companies and individuals
• Access to a wide panel of buy-to-let lenders, including those who support portfolio landlords
• Help with buy-to-let remortgages to release equity or secure better rates
• Step-by-step support throughout the mortgage process
• Honest advice and tailored solutions to suit your investment goals

Speak to a Buy-to-Let Mortgage Specialist Today

Whether you’re purchasing your first rental property, growing your portfolio, or refinancing existing investments, we’re here to help.

Get in touch with Orchard Mortgage Solutions today for a no-obligation consultation.

📞 Call us today 01257 543013 to speak with one of our expert advisers
📧 Or use our contact form to arrange a no-obligation consultation