How to Get Into Buy-to-Let Investing: A Mortgage Advisor’s Guide for First-Time Landlords

As a mortgage advisor, one of the most common conversations I have is with people who are curious about buy-to-let but aren’t quite sure where to begin. Maybe you're thinking about building a property portfolio, or maybe you’re just looking for a smart long-term investment. Either way, starting off on the right foot is key.

Here’s my practical guide to getting into buy-to-let investing—along with a few top tips I always share with new landlords.

What Is Buy-to-Let (BTL)?

Put simply, it’s buying a property with the intention of renting it out, rather than living in it yourself. You’ll usually need a buy-to-let mortgage, which works a little differently from a standard residential mortgage and has its own set of rules, rates, and criteria.

Top Tips for First-Time Buy-to-Let Investors

1. Know Your Goal

Before anything else, ask yourself: Are you investing for long-term capital growth, or are you focused on monthly rental income? Your strategy will help shape your property choice, location, and mortgage product.

2. Choose the Right Location

As an advisor, I always say: you’re not buying where you want to live—you’re buying where tenants want to live.

Look for:

• High rental demand (universities, commuter towns, city centres)

• Strong rental yields

• Potential for capital growth

  
  

I can help you calculate potential yields based on property prices and expected rent in different areas.

3. Understand the Numbers

A good buy-to-let needs to stack up financially. You'll want to consider:

• Rental yield (a basic benchmark is around 5–8%)

• Stamp duty (you’ll pay a 3% surcharge on top of standard rates)

• Letting agent fees, maintenance costs, insurance, and void periods

• Tax on rental income (especially after changes to mortgage interest relief)

  
  

I always help clients run the numbers properly—not just on affordability, but sustainability.

4. Should You Buy in Your Personal Name or Through a Limited Company?

One of the biggest decisions new landlords face is whether to buy a property in their personal name or through a Limited Company (Ltd Co).

There’s no one-size-fits-all answer—it depends on your long-term goals, income, and tax position. But here’s a quick overview:

Buying in Your Personal Name:

• Simpler and more straightforward, especially for first-time landlords

• Access to wider mortgage options and often lower interest rates

• Rental income is taxed as part of your personal income (which can push you into a higher tax band)

  
  

Buying Through a Limited Company:

• Potentially more tax-efficient for higher-rate taxpayers

• You can deduct 100% of mortgage interest as a business expense

• Corporation tax is currently lower than higher-rate personal income tax

• More complex structure (you’ll need to set up a Ltd company and file company accounts)

• Slightly higher mortgage rates and fewer lenders, though this market is growing

 It’s important to speak to both a mortgage adviser and a tax adviser before deciding which route is best for you.

5. Secure the Right Mortgage

Buy-to-let mortgages usually require:

• A 25% deposit

• Sufficient rental income to meet the Interest Coverage Ratio (ICR), usually 125–145% of the monthly interest payment

• A strong credit profile and clear understanding of your financial position

• Some lenders will take into account whether you own your own home or not

  
  

  As your advisor, I can recommend suitable lenders and navigate their criteria to get the best fit for your goals—especially if you’re self-employed or have other properties.

  
  

6. Decide If You’ll Use a Letting Agent

Managing the property yourself can save money—but it’s not always practical. Letting agents typically charge 8–15% of the monthly rent and can:

• Find and reference tenants

• Handle maintenance

• Ensure compliance with landlord regulations

  
  

It’s something to weigh up carefully, especially if you value your time.

7. Stay Legal and Compliant

Landlord responsibilities are no joke. You’ll need to ensure:

• Gas and electrical safety certificates are up to date

• Deposits are registered in a government-approved scheme

• Tenants have Right to Rent checks completed

• The property has a valid EPC (minimum E rating)

  
  

8. Think Long-Term

Buy-to-let is a marathon, not a sprint. Property values can rise and fall, but smart investors play the long game—building equity, reinvesting, and reviewing their mortgage strategy regularly.

And that’s where I come in—I’m not just here for the initial mortgage. I continue to review rates, assess your portfolio, and help you adapt as the market evolves.

Ready to Take the First Step?

Buy-to-let is a brilliant way to build wealth, but it's important to start with clarity and confidence. If you're thinking about investing—or just want to explore what’s possible—feel free to reach out. I’m always happy to chat through your options, break down the numbers, and help you take that first step toward becoming a landlord.