Buy to Let Mortgages in London
Buy to let mortgages for landlords in London, from single flats to portfolios.
Rental income explained
How lenders test the rent against the mortgage
Personal or company
The options explained for both
One property or many
Help for landlords at every stage
London has the largest rental market in the country, but purchase prices are high and the rent is often a smaller percentage of the price. Lenders test the rent against the loan, so this affects how much you can borrow.
We explain how buy to let affordability works, what to check on leasehold flats and what to prepare before you apply.
Buy to let in London
Most London buy to lets are leasehold flats, so lenders look at the remaining lease, the ground rent and the service charge, and may ask about the building’s fire safety. A short lease can limit both the lenders available now and the number of buyers who can borrow when you sell, so it is worth checking the lease before you commit.
Rules on HMOs and licensing vary between London boroughs, and many boroughs apply extra licensing on top of the national requirement, so check with the council for the property you are considering. Landlords with several properties may want to look at holding them in a limited company, which has tax consequences that you should discuss with a qualified tax adviser. We explain how lenders assess company purchases and portfolios.
How it works
Initial conversation
We talk about your plans, your income and any properties you already own.
Your options explained
We explain the mortgages that may suit you, and what we would recommend.
Agreement in principle
A lender gives an early indication of what it may lend. This can involve a credit check.
Application
We help you complete the application and provide the documents the lender needs.
Valuation, legal work and offer
The lender values the property and your solicitor carries out the legal work.
Completion
Funds are released and the purchase completes.
For the full guide, see our Buy to Let page.
Frequently asked questions
What lease length do lenders need on a London buy to let flat?
Many lenders have a minimum remaining lease length, and it varies by lender, so we check the lease before you proceed. A short lease may need to be extended first.
Do I need an extra licence to let in some London boroughs?
Some boroughs have additional or selective licensing schemes, which can apply to properties other than larger HMOs. Your borough’s website or council can tell you what applies.
How much deposit do I need for buy to let?
It depends on the lender, but deposits are usually larger than for a residential mortgage. We will look at your position and what is likely to be available.
Can I buy through a limited company?
Many lenders offer mortgages to limited companies, often with different criteria. We can explain what is involved and which lenders may be suitable.
Important information
- Most buy to let mortgages are not regulated by the Financial Conduct Authority.
- Your property may be repossessed if you do not keep up repayments on your mortgage.
- Rental income is not guaranteed, and tax treatment depends on your circumstances and may change. Please take advice from a qualified tax adviser.
The information on this page is general and is not advice. Advice depends on your personal circumstances.
Buy to Let in other areas
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