Buy to Let Mortgage | Expert Landlord Advice

Why buy-to-let is different

Buy-to-let mortgages work differently from standard residential ones, and it’s important to understand the key distinctions. Affordability isn’t based on your salary but on projected rental income, assessed using a lender’s Interest Coverage Ratio (ICR) stress test rather than simple income multiples. You’ll also need a larger deposit – typically 20-25% for standard properties, and 35% or more for HMOs, multi-units, or cases involving adverse credit.

Since the introduction of Section 24, individual landlords can no longer deduct all mortgage interest from rental income-tax relief is now limited to a basic-rate (20%) credit. As a result, many higher-rate taxpayers are opting to purchase through limited company SPVs for greater tax efficiency.

Legislation is constantly evolving, from EPC requirements to renter reforms, which means lenders regularly update their product criteria. Forge Financial Solutions stays on top of these changes and explains everything in plain English, so you’re never left guessing.

Important: 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.

Buy to Let

Our Solutions

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Access to a panel of 50+ lenders so you get the right deal, not a generic fit.
Clear guidance on deposits – from personal savings to SPV funding routes.
Fast Agreement in Principle (AIP) so you can view and offer with confidence.
Support with SPV setup, documents, and lender requirements explained in plain English.

...all managed through an easy 4 step process.

Step 1: Discovery call

Personal BTL: We carry out a fact-find, verify your ID, and discuss your investment and portfolio goals. Ltd-Company BTL: We confirm your SPV is correctly set up or help incorporate one if needed.
Step 2: Rental assessment

Personal BTL: We use lender calculators to stress-test your proposed rental income against affordability criteria. Ltd-Company BTL: Same process, but we also verify that your company uses an allowable SIC code and has an acceptable shareholder structure.
Step 3: Agreement in Principle (AIP)

Personal BTL: Issued based on your credit profile and the property details. Ltd-Company BTL: Involves a personal credit search for directors and a company credit search.
Step 4: Full application

Personal BTL: You'll need to upload proof of deposit and, if remortgaging, a copy of the AST (Assured Shorthold Tenancy). Ltd-Company BTL: Additional documents include the Certificate of Incorporation, latest company accounts (if trading), and signed personal guarantees from directors.

Document Checklist

Passport / photocard driving licence
Proof of address (≤ 3 months)
Latest 3 months’ bank statements (personal & business)
Evidence of deposit or equity release
Existing portfolio schedule (if ≥ 4 properties)
Tenancy agreement (for remortgage)
Certificate of Incorporation, Memorandum & Articles, share register, latest set of accounts, accountant’s reference, director guarantees

Bring these to your first meeting to avoid delays.

Expert Tips

Set up the SPV first

lenders dislike “director swaps” after offer.
Register for the Information Commissioner’s Office (ICO)

if you’ll hold tenant data.
Factor in Section 24

if you’re a higher-rate taxpayer, run the numbers on Ltd-Co vs personal ownership over five years.
Refinance six months + one day

after purchase to access uplifted value.
Consider a separate business bank account

some lenders insist on rent being paid here for easier stress-test evidence.

Here to HELP

What lenders look for

Deposit

How much you’re putting down and where it’s from.
Credit History

Your repayment record, outstanding debts, and overall score.
Rental Income

Expected rent and whether it covers the mortgage stress test.
Property Type

If it’s standard, HMO, multi-unit, or specialist lending.
Affordability

Whether your finances and portfolio meet lender requirements.

//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

Buy to Let