Understanding Buy to Rent Mortgages


Investing in property can be a great way to generate an additional income stream, and one way to do this is through a buy to rent mortgage. This type of mortgage is specifically designed for people who want to purchase a property with the intention of renting it out to tenants. In this blog post, we will discuss what a buy to rent mortgage is, how it works and the benefits it can offer.

What is a Buy to Rent Mortgage?

A buy to rent mortgage is a type of mortgage loan that is specifically designed for individuals who are looking to invest in a property with the intention of renting it out. These mortgages are typically offered by banks and building societies, and they work in a similar way to traditional mortgages. However, instead of buying a property to live in, you are buying a property to rent out to tenants.

How Does a Buy to Rent Mortgage Work?

When you apply for a buy to rent mortgage, the lender will typically look at the potential rental income that the property could generate, as well as your personal income and credit history. They will then use this information to determine how much they are willing to lend you.

It’s important to note that buy to rent mortgages typically require a larger deposit than traditional mortgages, usually around 25% of the property’s value. This is because lenders see buy to rent mortgages as a higher risk investment, as the property may not be occupied all of the time and rental income may not always be guaranteed.

Benefits of a Buy to Rent Mortgage

One of the main benefits of a buy to rent mortgage is the potential to generate an additional income stream. The rental income you receive from tenants can be used to cover the mortgage repayments, with any excess being kept as profit.

In addition, the value of the property may also increase over time, allowing you to build equity in the property. This can be particularly beneficial if you plan on selling the property further down the line.


A buy to rent mortgage can be a great way to invest in property and generate an additional income stream. However, it’s important to do your research and ensure that you fully understand the risks involved before taking out this type of mortgage. As with any investment, there are no guarantees, and it’s important to be prepared for any potential challenges that may arise.

At Prestige Mortgage Solutions, our team of experts are on hand to offer bespoke mortgage advice tailored to your individual needs and circumstances. Contact us today to find out how we can help you with your mortgage journey.

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