---
title: "Investment Property Mortgages"
description: "Investment property mortgages in the UK: deposits, rental cover tests, limited company vs personal names, cash vs mortgage, and the lender types available."
url: "https://mortgagelane.com/mortgages/investment-property-mortgages"
site: "Mortgage Lane"
collection: "mortgages"
date: "2026-11-03"
category: "Mortgages"
reviewed: "2026-11-03"
reading_time: "24 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# Investment Property Mortgages

Investment property mortgages in the UK: deposits, rental cover tests, limited company vs personal names, cash vs mortgage, and the lender types available.

Finance for property bought to let, not to live in: buy to let, limited company, HMO, multi-unit, holiday let and mixed-use, assessed on the rent the property earns, not just your salary.

[Interest coverage ratio (ICR)](https://mortgagelane.com/definitions?term=interest-coverage-ratio)

Buy-to-let

Income divided by interest costs over the same period, often expressed as a percentage in buy-to-let lending.

[Read the full definition of Interest coverage ratio (ICR)](https://mortgagelane.com/definitions?term=interest-coverage-ratio)

## Expert advice on investment property mortgages

Speak to a Mortgage Lane adviser about your options.

## In short

An investment property mortgage is a loan secured on a property bought to earn rent or capital growth rather than to live in, and in the UK it is almost always a buy to let mortgage, assessed mainly on whether the expected rent covers the mortgage interest at a stressed rate.

The term covers a single let flat bought in a personal name, a portfolio held in a limited company, houses in multiple occupation, blocks of flats on one title, furnished holiday lets and mixed-use buildings with a shop below and flats above. Each is underwritten differently, but the core test is the same: lenders follow the Prudential Regulation Authority's buy to let underwriting standards, which require the rent to exceed the interest by a set margin at a rate higher than the one actually charged. The deposit, the ownership structure and the tax position decide the rest: how much can be borrowed, how much the property earns after tax, and which lenders will consider the application.

[Criteria](#investment-property-mortgage-criteria)

## Who we help

Mortgage Lane arranges investment property mortgages for first-time landlords, existing landlords adding to a portfolio, portfolio landlords with four or more mortgaged properties, limited company and special purpose vehicle buyers, investors in houses in multiple occupation and multi-unit freehold blocks, holiday let owners, expat and foreign national investors, and borrowers releasing equity from their own home or an existing portfolio to fund a further purchase.

## What is an investment property mortgage?

**An investment property mortgage is any mortgage where the property is not the borrower's home and the borrower expects a return from it: rent, capital growth or both.**

### Buy to let, and what sits beyond it

Most investment property mortgages are buy to let mortgages on a single self-contained home let on an assured tenancy. Specialist lenders extend the same structure to houses in multiple occupation, multi-unit freehold blocks, holiday lets and short-term lets, and properties bought below market value or needing refurbishment. Where part or all of the property is commercial (a shop, an office, a hotel) the loan becomes a semi-commercial or commercial mortgage, underwritten on the business income or the commercial rent instead.

The table below shows what separates it from a residential mortgage.

## Residential mortgage compared with an investment property mortgage

*Investment property mortgages: residential mortgage compared with investment property mortgage*

| Feature | Residential mortgage | Investment property mortgage |
| --- | --- | --- |
| Purpose | A home for the borrower or their family | Letting to tenants or guests for a return |
| Main affordability test | The borrower's income and outgoings | The rent against the interest at a stressed rate, with personal income as a secondary check |
| Typical minimum deposit | 5% to 10% | 20% to 25% |
| Repayment type | Usually capital and interest | Commonly interest-only, with the property sale or refinance as the repayment route |
| Regulation | Regulated by the Financial Conduct Authority | Usually unregulated; regulated only where the borrower or a close relative lives in it, or for consumer buy to let |
| Borrower | Individuals | Individuals or limited companies |

## Buy-to-let calculator

Explore your borrowing

Start again

Enter your figures in pounds. Your estimate updates as you go.

Indicative maximum loan

\-

Enter your figures to see an estimate.

Loan to value

[Discuss your options](#enquiry)

Indicative estimate only, subject to lender criteria and valuation. This is not a mortgage offer. Your property may be repossessed if you do not keep up repayments.

## How lenders assess an investment property mortgage

**Lenders assess the rent first and the borrower second.** Under the Prudential Regulation Authority's supervisory statement SS13/16, a lender must check that the expected rent covers the mortgage interest by a minimum margin, the interest coverage ratio, when the interest is calculated at a stressed rate rather than the actual rate.

Where the rent alone falls short, some lenders allow the borrower's personal income to top up the shortfall, known as top-slicing, for borrowers with spare income after their own commitments.

## How lenders assess an investment property mortgage

*Investment property mortgages: how lenders assess the application*

| Test | How it works |
| --- | --- |
| Interest coverage ratio | Annual rent divided by annual interest at the stress rate. Commonly 125% for limited companies and basic-rate taxpayers and 145% for higher and additional-rate taxpayers |
| Stress rate | At least 5.5%, or the pay rate plus a margin, for products fixed for under five years; products fixed for five years or more can be stressed at the pay rate |
| Personal income | Many lenders set a minimum personal income outside the rent; some set none |
| Portfolio | Borrowers with four or more mortgaged buy to let properties are portfolio landlords, and the lender assesses the whole portfolio's rent, debt and cash flow, not only the new purchase |
| Experience | Some lenders decline first-time landlords, or first-time buyers with no home of their own; others accept both |
| Property | Valuation and rental assessment by the lender's surveyor; the surveyor's rent figure, not the agent's, is the one used |

## Investment property mortgage rates

**Investment property mortgage rates are set by the loan-to-value, the property type, the ownership structure and the product fee.** Pricing steps up at each loan-to-value band, and specialist property types (houses in multiple occupation, multi-unit blocks, holiday lets) carry a margin over a standard single let. Limited company products are priced above personal name products at the same loan-to-value with many lenders, though the gap has narrowed as limited company lending has grown. A larger percentage arrangement fee buys a lower rate, which increases the amount the rent supports under the interest coverage test; whether the fee is worth paying depends on the loan size and how long the product is held.

**Buying an investment property?** Get in touch with the purchase price, the expected rent, how you intend to own it and your income: the lender list narrows quickly on those four facts.

[Get in touch](#enquiry)

## Investment property mortgage criteria

The typical position across the market for each criterion.

*Investment property mortgage criteria*

| Criterion | Typical position across the market |
| --- | --- |
| Maximum loan-to-value | 75% is standard; 80% and 85% from a smaller number of lenders |
| Interest coverage ratio | 125% to 145% at the stress rate, by borrower tax band and structure |
| Repayment type | Interest-only or capital and interest |
| Borrower type | Individuals, joint borrowers, limited companies including special purpose vehicles, trading companies with some lenders |
| First-time landlords | Accepted by many lenders; some require existing home ownership |
| First-time buyers | Accepted by fewer lenders |
| Minimum personal income | None to a set amount, by lender |
| Age | Minimum 18 to 21; maximum age at the end of the term set by lender, with some having no upper limit |
| Portfolio size | No limit with portfolio lenders; some lenders cap the number or value of properties held |
| Property types | Single lets, houses in multiple occupation, multi-unit freehold blocks, holiday lets, mixed-use, ex-local authority, new builds |
| Adverse credit | Accepted by specialist lenders within set limits, at higher rates |
| Expats and foreign nationals | Accepted by specialist lenders |

Market-wide ranges, not one lender's terms.

## How much can you borrow for an investment property?

**The loan is the lower of two figures: the maximum loan-to-value on the purchase price, and the amount the rent supports under the interest coverage test.**

**Example 1: rent supports the full loan.** A £250,000 purchase at 75% loan-to-value is a £187,500 loan. At a 5.5% stress rate and a 125% coverage ratio, the rent required is £1,074.22 a month; at 145% it is £1,246.09. A property letting at £1,250 a month passes both tests.

**Example 2: rent limits the loan.** The same £250,000 property letting at £1,200 a month supports a loan of up to £209,455 at 125% coverage, so the 75% loan-to-value of £187,500 is the limit. At 145% coverage, used for higher-rate taxpayers borrowing in their own name, the rent supports £180,564, less than 75%, and the deposit must rise to £69,436.

**Example 3: a five-year fix.** Where the product is fixed for five years or more, the lender may stress at the pay rate instead of 5.5%, which raises the loan the same rent supports. This is why five-year fixes are common on investment property where the rent is tight.

*Illustrative figures; lenders apply their own coverage ratios, stress rates and rental valuations. Not an offer of finance.*

## Types of investment property and how each is financed

**The property type decides the lender panel, the valuation method and the deposit.**

### Single buy to let

A self-contained house or flat let to one household on an assured tenancy. The widest lender choice, and the mechanics are in the [buy to let mortgage guide](https://mortgagelane.com/guides/buy-to-let-mortgage-guide). Get in touch with the purchase price and expected rent.

### Houses in multiple occupation

A property let room by room to three or more people forming more than one household. Large houses in multiple occupation (five or more occupants) need a mandatory licence from the local authority, and some areas license smaller ones. Lenders that value on the income the property produces, rather than on comparable house sales, can lend more on a strong letting. The detail is on our [HMO mortgages](https://mortgagelane.com/mortgages/hmo-mortgages) page. Get in touch with the room rents, licence status and number of occupants.

### Multi-unit freehold blocks

Several self-contained flats on one freehold title, financed with one mortgage. Lenders differ on the maximum number of units and on whether they value the block as a whole or unit by unit. See [multi-unit freehold block mortgages](https://mortgagelane.com/mortgages/mufb-mortgage). Get in touch with the number of units, the rents and the title details.

### Holiday lets

Properties let to guests for short stays, assessed on projected seasonal income from a letting agent or comparable lets. The furnished holiday let tax regime was abolished from April 2025, so holiday lets are now taxed like other residential lets, including the restriction on finance cost relief for individuals. See [holiday let mortgages](https://mortgagelane.com/mortgages/holiday-let-mortgages). Get in touch with the location and the projected income.

### Commercial and mixed-use investment

A **commercial property investment mortgage** finances a shop, office, industrial unit or other commercial building let to a business tenant, assessed on the lease, the tenant and the commercial rent. A semi-commercial property, with commercial space and flats above, sits between residential and commercial lending. Both are covered in our [commercial mortgage](https://mortgagelane.com/mortgages/commercial-mortgages) page. Get in touch with the lease, the tenant and the rent.

### Second charge loans and equity release for investment

A **second mortgage on an investment property** is a second charge loan secured behind the existing buy to let mortgage, used to raise capital without disturbing a low fixed rate or triggering early repayment charges. The alternatives are a further advance from the existing lender or a remortgage of the whole loan. Equity in the borrower's own home can also fund a deposit, through a remortgage, further advance or [second charge loan](https://mortgagelane.com/insights/second-charge-mortgages); the lender for the new purchase then treats the borrowed deposit as a commitment in its affordability check. Get in touch with the existing mortgage terms and the equity available.

## Personal name or limited company

A special purpose vehicle is a limited company set up only to hold property, usually registered with standard property SIC codes such as 68100 or 68209. The higher coverage ratio applied to higher-rate taxpayers borrowing personally is the restriction on mortgage interest relief working through the underwriting: the same rent supports a smaller personal loan than a company loan. More on how limited company lending is priced on our [SPV mortgage rates](https://mortgagelane.com/insights/spv-mortgage-rates) page.

## Personal name compared with a limited company

*Investment property mortgages: personal name compared with limited company*

| Feature | Personal name | Limited company (special purpose vehicle) |
| --- | --- | --- |
| Tax on rental profit | Income tax at the owner's marginal rate | Corporation tax, then dividend or salary tax on extraction |
| Mortgage interest | Not deductible; a 20% basic-rate tax credit instead (since April 2020) | Deductible as a business expense |
| Typical coverage ratio | 125% for basic-rate taxpayers; 145% for higher-rate | Commonly 125% regardless of the directors' tax bands |
| Personal guarantees | Not applicable | Directors give personal guarantees |
| Lender choice | Widest | Wide and growing; some lenders do not lend to companies |
| Moving an existing property in | Not applicable | A sale to the company, with stamp duty and potential capital gains tax |

The ownership structure sets the tax on the rent, the interest coverage ratio and the lender panel.

[Get in touch](#enquiry)

## Buying an investment property with cash or a mortgage

A cash buyer can also complete first and refinance later, once the property is let or refurbished, which avoids lender delays on the purchase. Step 3 of the arithmetic below shows the numbers.

## Cash purchase compared with a mortgage purchase

*Investment property mortgages: cash purchase compared with mortgage purchase*

| Feature | Cash purchase | Mortgage purchase |
| --- | --- | --- |
| Cash tied up per property | The full price plus costs | The deposit plus costs |
| Return on cash invested | The net rent yield | Higher if the rent yield exceeds the interest rate; lower if not |
| Exposure to falling values | Loss in proportion to the fall | Loss multiplied by the leverage |
| Interest rate risk | None | Payments rise with rates on refinance or variable products |
| Speed and certainty | Faster; no lender conditions | Subject to valuation and underwriting |
| Tax on finance costs | None to deduct | Restricted for individuals; deductible for companies |

A mortgage increases the return on the cash invested when the rent yield exceeds the mortgage rate, and increases the loss when values fall; cash removes both the leverage and the borrowing cost.

[Get in touch](#enquiry)

## Investment property mortgage lenders

**Investment property lending in the UK comes from four groups of lender, and which one fits depends on the borrower and the property.**

Many specialist lenders deal only through brokers. A whole-of-market broker compares across all four groups rather than one lender's range.

## Investment property mortgage lender types

*Investment property mortgages: lender types*

| Lender type | Typical fit |
| --- | --- |
| High street banks and building societies | Personal name single lets with straightforward income; some limited company lending |
| Specialist buy to let lenders | Limited companies, portfolio landlords, houses in multiple occupation, multi-unit blocks, holiday lets, first-time landlords |
| Challenger and private banks | Larger loans, complex portfolios, high-net-worth borrowers, bespoke structures |
| Commercial lenders | Commercial and larger semi-commercial investment property |

## The costs and risks of an investment property

**The costs are tax, fees and running costs; the risks are voids, rates, regulation and repossession.**

- **Stamp duty:** additional properties in England and Northern Ireland pay a 5% surcharge on top of standard rates since 31 October 2024; Wales applies higher rates of Land Transaction Tax and Scotland an 8% Additional Dwelling Supplement.
- **Mortgage fees:** arrangement fees, valuation and legal costs; limited company purchases add company legal work.
- **Running costs:** letting and management fees, insurance, safety certificates, maintenance, licensing and service charges on leasehold flats.
- **Tax on the rent:** income or corporation tax, and capital gains tax on a sale.
- **Voids and arrears:** months without rent still carry the mortgage payment.
- **Interest rates:** a refinance at a higher rate cuts the margin and can reduce the loan the rent supports.
- **Regulation:** the Renters' Rights Act, in force in England from 1 May 2026, abolished section 21 no-fault evictions and moved assured tenancies to periodic terms, changing how landlords end tenancies and recover possession.

**Your property may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate most buy to let mortgages.**

## How to get a mortgage for an investment property

1. **The numbers.** Purchase price, expected rent, deposit and its source, income, existing properties and mortgages, and credit history.
2. **The structure.** Personal name or limited company, decided with an accountant before the offer, because a lender cannot switch the borrower after approval.
3. **The lender and the product.** The lender panel filtered by property type, structure and experience; the fixed period chosen with the coverage test in mind.
4. **Decision in principle and application.** A credit check, the lender's valuation and rental assessment, and portfolio documents for landlords with four or more mortgaged properties.
5. **Offer and completion.** Legal work, including the company's documents and personal guarantees for limited company purchases; the tenancy put in place on the lender's terms.

## The investment property arithmetic

**Four calculations decide whether an investment property mortgage works: the stamp duty, the rent the loan needs, the return on the cash invested, and the tax on the profit.**

### Step 1: stamp duty on a £250,000 additional property in England

The stamp duty is £15,000, of which the 5% surcharge alone is £12,500, cash on top of the deposit.

## Step 1 figures: stamp duty by band

*Investment property mortgages: Step 1 figures, stamp duty on a £250,000 additional property in England*

| Band | Standard rate | Surcharge | Tax |
| --- | --- | --- | --- |
| £0 to £125,000 | 0% | 5% | £6,250 |
| £125,001 to £250,000 | 2% | 5% | £8,750 |
| Total |  |  | £15,000 |

## Step 2: the rent the loan needs

A £187,500 loan at the 5.5% stress rate needs the rent shown.

*Investment property mortgages: Step 2 figures, the rent a £187,500 loan needs at the 5.5% stress rate*

| Coverage ratio | Annual rent required | Monthly rent required |
| --- | --- | --- |
| 125% | £12,890.62 | £1,074.22 |
| 145% | £14,953.12 | £1,246.09 |

## Step 3: cash or mortgage

The £250,000 property lets for £15,000 a year (a 6% gross yield). Costs, stamp duty and tax are left out to isolate the leverage effect, and 5% is an illustrative interest-only rate. Leverage raises the return on cash from 6% to 9% while the yield exceeds the rate, and turns a 10% fall in value into a 40% loss of the cash invested. If the rate rose to 6%, the mortgaged return would fall to 6%, the same as cash, with the leverage risk still in place.

## Step 3 figures: cash against a 75% mortgage

*Investment property mortgages: Step 3 figures, cash against a 75% mortgage*

| Measure | Cash | 75% mortgage |
| --- | --- | --- |
| Cash invested | £250,000 | £62,500 |
| Annual interest | £0 | £9,375 |
| Rent less interest | £15,000 | £5,625 |
| Return on cash invested | 6% | 9% |
| A 10% fall in value (£25,000) as a share of cash invested | 10% | 40% |

Illustrative figures on a £250,000 property and a 5% interest-only rate.

## Step 4: the tax on the same profit

The same £15,000 rent and £9,375 interest, ignoring other costs. The company figure in the table is before dividend tax on money taken out, and before accountancy and company costs; the gap narrows when profits are extracted. The higher-rate personal borrower keeps £1,500 of £5,625, which is why the lender's 145% coverage ratio for higher-rate taxpayers exists.

## Step 4 figures: the tax on the same profit

*Investment property mortgages: Step 4 figures, the tax on the same profit*

| Measure | Higher-rate taxpayer, personal name | Limited company |
| --- | --- | --- |
| Tax charged on | £15,000 (interest not deductible) | £5,625 (interest deductible) |
| Tax before credit | £6,000 at 40% | £1,068.75 at the 19% small profits rate |
| Basic-rate credit on interest | -£1,875 | None |
| Tax payable | £4,125 | £1,068.75 |
| Left after mortgage and tax | £1,500 | £4,556.25 (before tax on extraction) |

All figures illustrative. Tax rules and rates change; take tax advice before choosing a structure.

</team/joseph-lane>

About the author

## Joseph Lane CeMAP is an expert mortgage broker

Founder, CEO

Calls and emails here go to Joseph personally, not to a general inbox.

[Call Joseph](tel:+447487829005)[Email Joseph](mailto:joe@mortgagelane.com)

[+44 7487 829005](tel:+447487829005)[joe@mortgagelane.com](mailto:joe@mortgagelane.com)[More about Joseph](https://mortgagelane.com/team/joseph-lane)

## Related topics

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[View all case studies](https://mortgagelane.com/case-studies)

## Frequently asked questions about investment property mortgages

**Q: What is an investment property mortgage?**

faq-id: what-is-an-investment-property-mortgage

An investment property mortgage is a loan secured on a property bought to earn rent or capital growth rather than to live in. In the UK it is usually a buy to let mortgage, assessed mainly on whether the expected rent covers the mortgage interest at a stressed rate, with personal income as a secondary check.

**Q: Is an investment property mortgage the same as a buy to let mortgage?**

faq-id: is-an-investment-property-mortgage-the-same-as-a-buy-to-let-mortgage

Most investment property mortgages are buy to let mortgages, but the term is wider. It also covers mortgages on houses in multiple occupation, multi-unit freehold blocks, holiday lets and mixed-use buildings, each underwritten differently, and commercial investment mortgages on property let to business tenants.

**Q: How much deposit do I need for an investment property?**

faq-id: how-much-deposit-do-i-need-for-an-investment-property

Most lenders require a deposit of at least 25% for an investment property, and a smaller number lend with a 20% or 15% deposit at higher rates. The deposit can also be larger than the minimum where the rent does not support the full loan under the lender's rental cover test.

**Q: How much can I borrow for an investment property?**

faq-id: how-much-can-i-borrow-for-an-investment-property

You can borrow the lower of the lender's maximum loan-to-value on the price and the amount the rent supports. Lenders typically require the annual rent to cover the annual interest by 125% to 145%, calculated at a stress rate of at least 5.5% unless the product is fixed for five years or more.

**Q: What is an interest coverage ratio?**

faq-id: what-is-an-interest-coverage-ratio

An interest coverage ratio (ICR) is the rent divided by the mortgage interest, used by buy to let lenders to test affordability. A 125% ratio means the rent must be 25% higher than the interest calculated at the lender's stress rate, and higher-rate taxpayers borrowing personally are commonly tested at 145%.

**Q: Do I need a minimum income for an investment property mortgage?**

faq-id: do-i-need-a-minimum-income-for-an-investment-property-mortgage

Many lenders set a minimum personal income for an investment property mortgage in addition to the rental test, and some set none. Personal income can also make up a rent shortfall with lenders that allow top-slicing, where spare income after the borrower's own commitments supports a larger loan.

**Q: Can a first-time buyer get an investment property mortgage?**

faq-id: can-a-first-time-buyer-get-an-investment-property-mortgage

A first-time buyer can get an investment property mortgage from a limited number of lenders, usually with a larger deposit or stricter income requirements. Many lenders require the borrower to own their own home first, and some also require previous letting experience for specialist property types such as multiple occupation lets.

**Q: Should I buy an investment property with cash or a mortgage?**

faq-id: should-i-buy-an-investment-property-with-cash-or-a-mortgage

A mortgage raises the return on the cash invested when the rent yield exceeds the mortgage rate, but multiplies losses if values fall. Buying with cash removes the borrowing cost and the leverage risk, completes faster, and can be followed by a mortgage once the property is let or refurbished.

**Q: Should I buy an investment property in my own name or a limited company?**

faq-id: should-i-buy-an-investment-property-in-my-own-name-or-a-limited-company

Buying in a limited company lets mortgage interest be deducted from rental profit and taxes profit at corporation tax rates, while personal ownership restricts interest relief to a 20% tax credit. Company profits are taxed again when extracted, so the choice is made with an accountant before applying.

**Q: What is a portfolio landlord?**

faq-id: what-is-a-portfolio-landlord

A portfolio landlord is a borrower with four or more mortgaged buy to let properties, a definition set by the Prudential Regulation Authority. Lenders assess a portfolio landlord's whole portfolio, including its rents, debts, cash flow and business plan, rather than only the property being bought or refinanced.

**Q: Can I get a second mortgage on an investment property?**

faq-id: can-i-get-a-second-mortgage-on-an-investment-property

A second mortgage on an investment property is usually a second charge loan secured behind the existing buy to let mortgage, used to raise capital without replacing it. It avoids early repayment charges on the first mortgage, and is compared with a further advance or a full remortgage on total cost.

**Q: Can I use equity in my home to buy an investment property?**

faq-id: can-i-use-equity-in-my-home-to-buy-an-investment-property

You can release equity from your own home through a remortgage, further advance or second charge loan to fund an investment property deposit. The borrowing is secured on your home, and the lender for the investment property treats the new payments as a commitment when assessing affordability.

**Q: Are investment property mortgages regulated?**

faq-id: are-investment-property-mortgages-regulated

Most investment property mortgages are not regulated by the Financial Conduct Authority (FCA), because they are business lending. A mortgage is regulated where the borrower or a close relative will live in the property, and consumer buy to let, such as letting an inherited home, has its own protections.

**Q: What stamp duty do I pay on an investment property?**

faq-id: what-stamp-duty-do-i-pay-on-an-investment-property

An investment property in England or Northern Ireland pays stamp duty land tax (SDLT) at standard rates plus a 5% surcharge on the whole price, in place since 31 October 2024. A £250,000 additional property pays £15,000. Wales and Scotland apply their own higher rates for additional homes.

**Q: Can I get an interest-only investment property mortgage?**

faq-id: can-i-get-an-interest-only-investment-property-mortgage

Interest-only is the most common repayment type on investment property mortgages, because the monthly payment is lower and the rental cover test is based on interest. The loan is repaid at the end of the term, usually from a sale or refinance, so the property's value must exceed the balance.

**Q: Can I get a mortgage on an HMO or multi-unit block?**

faq-id: can-i-get-a-mortgage-on-an-hmo-or-multi-unit-block

Specialist lenders provide mortgages on houses in multiple occupation (HMOs) and multi-unit freehold blocks (MUFBs), with criteria on licensing, unit numbers and experience. Some value these properties on the income they produce rather than comparable sales, which can support a larger loan on a strong letting.

**Q: Can I get an investment mortgage for a holiday let?**

faq-id: can-i-get-an-investment-mortgage-for-a-holiday-let

Holiday let mortgages are available from specialist lenders and are assessed on projected seasonal income rather than a long-term rent. The furnished holiday let tax regime was abolished from April 2025, so holiday lets are now taxed like other residential lets, including the restriction on interest relief for individuals.

**Q: What is a commercial property investment mortgage?**

faq-id: what-is-a-commercial-property-investment-mortgage

A commercial property investment mortgage finances a shop, office, industrial unit or other commercial building let to a business tenant. Lenders assess the lease length, the tenant's strength and the rent, and semi-commercial property with flats above commercial space sits between residential and commercial lending.

**Q: Does the Renters' Rights Act affect investment property mortgages?**

faq-id: does-the-renters-rights-act-affect-investment-property-mortgages

The Renters' Rights Act came into force in England on 1 May 2026, abolishing section 21 no-fault evictions and moving assured tenancies to periodic terms. It changes how landlords end tenancies and recover possession, so a broker checks that the lender's tenancy conditions fit the new rules before applying.

**Q: How do I get a mortgage for an investment property?**

faq-id: how-do-i-get-a-mortgage-for-an-investment-property

To get a mortgage for an investment property, decide on personal or limited company ownership, confirm the deposit and expected rent, and compare lenders by property type and experience. A broker obtains a decision in principle, submits the application, and manages the valuation, rental assessment and offer through to completion.

## Talk it through with an adviser

Planning an investment property purchase? Get in touch with the price, the rent, the deposit and how you intend to own it, and we will compare personal and limited company options across the whole market before you apply.

Let’s talk property finance

## Contact us

Your property may be repossessed if you do not keep up repayments on your mortgage. The Financial Conduct Authority does not regulate most buy to let mortgages. Mortgage Lane is a credit broker, not a lender.

**Call our team:** [+44 333 231 8206](tel:+443332318206)
**Email us:** [enquiries@mortgagelane.com](mailto:enquiries@mortgagelane.com)
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Published: 2026-11-03

Last reviewed: 2026-11-03

Source: https://mortgagelane.com/mortgages/investment-property-mortgages