Whether you’re an experienced landlord or planning your first investment, understanding how Buy to Let mortgages work is essential.

If you’re looking to buy a rental property in York, your mortgage will work differently from a standard residential one, with different lending criteria, interest rates, and deposit requirements.

As a mortgage broker in York, we help property investors secure Buy to Let mortgages that fit their goals, from single-let houses to HMOs. Here’s how it all works.

What is a buy to let mortgage in York?

A Buy to Let mortgage in York is designed for people who want to buy a property and rent it out to tenants.

Unlike residential mortgages, which are based on your income, Buy to Let mortgages are largely based on the expected rental income from the property.

Lenders will assess how much rent the property is likely to generate and compare this with the mortgage cost.

This is known as rental stress testing, and it helps the lender make sure the rent will comfortably cover the monthly payments, even if interest rates rise.

How much deposit do you need?

Buy to Let mortgages usually require a larger deposit than residential mortgages. In most cases, you’ll need at least 20% to 25% of the property’s value as a deposit.

Some landlords choose to put down more to access lower interest rates or improve their cash flow.

For example, if you’re buying a £200,000 terraced house in York to rent out to young professionals, a 25% deposit would be £50,000.

The remaining £150,000 would be covered by the mortgage.

Interest-Only or Repayment?

Most Buy to Let mortgages in York are set up on an interest-only basis.

This means you only pay the interest each month, not the capital.

It keeps monthly payments lower, which can improve rental yield and give landlords more flexibility with cash flow.

That said, some landlords do choose repayment mortgages, especially if they’re looking to build equity or plan to pass the property on in the future.

Our mortgage advisors in York will help you weigh up both options depending on your plans and tax position.

Do you need a minimum income?

Some lenders want landlords to have a separate income alongside rental earnings.

This is usually to show that you can cover costs if the property sits empty or needs repairs.

The minimum income required varies between lenders, but many accept applications from people earning £25,000 or more annually.

If you’re already a landlord with other properties, your existing portfolio and rental track record can also support your application.

What properties qualify for buy to let?

Most standard houses and flats in York can be used as Buy to Let, as long as the property meets basic mortgage criteria. Some lenders are more cautious with:

  • Student lets
  • HMOs (houses in multiple occupation)
  • New build apartments
  • Properties above commercial premises

We regularly help landlords secure Buy to Let mortgages in York and surrounding areas, from two-up two-downs in Acomb to Tang Hall.

Local knowledge matters, and we know which lenders are open to York postcodes and property types.

How do you apply for a buy to let mortgage?

The process starts by speaking to one of our mortgage advisors in York.

We’ll work out how much you could borrow based on the expected rent and your deposit, then compare deals across the market.

Once you’ve had an offer accepted on a property, we’ll apply for an agreement in Principle and then a full mortgage application.

The lender will carry out a valuation to confirm the property’s rental potential, and we’ll manage the process right through to completion.

Date Last Edited: June 17, 2025