How to Find the Right Buy To Let Mortgage Deal For You
With rental demand at record highs and property investors facing tighter lending rules, finding a competitive buy to let mortgage has become both more challenging and more important than ever in 2025, and moving towards 2026.
For landlords old and new, the key to success is understanding how lenders assess risk, what affects mortgage rates, and which strategies can maximise long-term returns.
What Is a Buy to Let Mortgage?
A buy to let mortgage is designed for property investors purchasing homes to rent out rather than live in.
These loans are often interest-only, meaning you pay only the interest each month and repay the full capital at the end of the term.
Lenders base their decision not just on your income but also on rental coverage ratios – ensuring expected rent exceeds the mortgage payment by 125–145%.
This ensures the investment remains viable even if rents dip or interest rates rise.
Current Market Conditions
Mortgage rates rose through 2024 but have stabilised slightly in 2025, with average fixed buy to let deals hovering around 5–5.5%.
While still high compared to pre-pandemic levels, competition among specialist lenders remains strong.
On the Isle of Wight, where tourism drives steady rental demand, landlords continue to find opportunities in both long-term and holiday-let markets.
Local brokers report growing interest in green buy to let mortgages, which reward energy-efficient properties with lower rates.
Deposit and Loan-to-Value Requirements
Most lenders require at least a 25% deposit, though some may accept 20% for experienced landlords. However, better rates are usually available with 40% equity.
A higher deposit lowers risk for the lender and improves cash flow for the borrower – especially important when rates fluctuate.
Factors That Influence the Deal
- Property type: Flats above shops or ex-local authority housing can attract higher rates.
- Location: Lenders favour strong rental markets with stable demand.
- Experience: First-time landlords often face stricter criteria.
- Company vs personal ownership: Limited company buy to let mortgages have different pricing and tax treatment.
How to Find the Right Buy to Let Mortgage For Your
- Compare whole-of-market lenders – not just high-street banks.
- Use a specialist broker – they understand which lenders are flexible with rental stress tests.
- Factor in total cost – include arrangement fees, valuation fees, and early repayment charges.
- Review fixed vs variable rates – consider locking in for certainty or tracking for flexibility.
The Role of a Mortgage Broker
A professional mortgage broker can identify lenders that cater to specific property types or borrower profiles.
They can also access exclusive products unavailable to the public.
For Isle of Wight landlords, where demand for coastal rentals remains strong, a broker’s local knowledge can be the difference between an approval and a rejection.
Final Word
Finding a buy to let mortgage in 2025 is about more than chasing the lowest rate – it’s about finding a deal that aligns with your long-term strategy.
In a tightening market, working with a professional broker and doing careful financial planning remain the best ways to secure profitable, sustainable property investments.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Most Buy to Let mortgages are not regulated by the Financial Conduct Authority.
Bransgroves Mortgage Brokers is a trading name of Just Mortgages Direct Limited which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.
Approved by The Openwork Partnership on 28/11/2025
