Buy to Let Self-Employed

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Buy to Let Mortgages for the Self-Employed 

Self-employed people are often concerned that getting Buy to Let mortgage approval will be a challenge. But it isn’t usually a problem as long as you have the required deposit and can generate a good level of rent from the new property.

What is a self-employed Buy to Let Mortgage?

Buy to Let mortgages are much like a residential mortgage, although interest rates are often more expensive.  You will need to put down a cash deposit and pay monthly mortgage repayments. 

Self-employed people apply for the same Buy to Let products as everyone else. There is a choice of repayment or interest-only Buy to Let products. Many landlords opt for interest-only – although this does come with some risks. 

Can I get a Buy to Let Mortgage if I’m self-employed?

Buy to Let mortgage lenders normally welcome self-employed applications. With Buy to Let, lenders are less interested in your personal income – they focus more on the rent the property can generate. They will be looking for the rent to reach at least 125% of the monthly mortgage cost. 

Having said that, some lenders will want you to meet minimum income requirements, so that they know you can pay the mortgage if the property has no tenant for a month or two. 

One thing to be aware of with Buy to Let is that lenders often require you to own your own home.

How much deposit will I need?

One of the big differences with a Buy to Let mortgage is that you will need a considerable deposit. The minimum is usually 25%. 

Deposits are higher for Buy to Let because lenders see renting out a property and collecting rent as more risky than buying a home to live in yourself.

How much can I borrow if I’m self-employed?

The amount you can borrow is not related to your personal income – it’s based on the amount of rent you will be able to generate from the property. There are various Buy to Let mortgage calculators you can use to work this out. The figures you will need are the cost of the property and the expected rent.

Can I convert my mortgage to a Buy to Let mortgage?

If you have decided to let out your residential home, you will need a Buy to Let mortgage. Some lenders will allow you to switch your current deal – but you should look at the details before deciding. 

Compare the rates and fees for switching against taking out a separate Buy to Let mortgage. You will also need to factor in whether there is an early repayment charge on your current product.

What are the tax benefits and implications?

New tax rules brought in recently have made Buy to Let less tax efficient than it once was. Some experienced landlords set up businesses in response. Whether this will suit you depends on your situation, so seek expert advice.

A further tax-related concern is that if you sell your rental property, it will be subject to Capital Gains Tax. You will also be eligible for additional stamp duty – a Buy to Let property will cost you an additional 3% in duty. It’s important to seek professional financial advice about the tax benefits and implications, and we can help you with that. 

How can Mortgage Advice Centre help?

If you are planning to invest in a Buy to Let property, let us make it easy for you. Buy to Let mortgages are only available via a Mortgage Broker, and self-employed mortgages can sometimes be a little more complex. 

We’ll seek out the most suitable mortgage deals on your behalf. Our mortgage advisers have helped hundreds of self-employed people get a Buy to Let mortgage and start renting out property. 

Remember that Buy to Let mortgages aren’t regulated by the Financial Conduct Authority, so using a broker is a good way to ensure you are protected. Get in touch today.


The Financial Conduct Authority does not regulate most Buy to Let Mortgages.

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