NatWest mortgages are available to over 18s. Your property may be repossessed if you do not keep up repayments on your mortgage. The content on this page is guidance only and does not constitute advice.
We aren't currently offering buy to let mortgages directly through NatWest
We regularly review the mortgages we offer. Please check back at a later date, when we hope to be able to provide you with a buy to let mortgage.
Choosing a buy to let mortgage
Step 1: Find out what we could offer you
- Get a personalised indication of how much you could borrow in less than 10 minutes.
- It won't impact your credit score.
Our buy-to-let mortgages could allow you to buy a property to rent out. Whether you are buying your first property or expanding your property portfolio, our buy-to-let mortgages could be right for you.
What is buy to let mortgage?
A buy to let, or buy to rent mortgage is for a landlord who wants to buy a property to rent out.
- You can learn more about buy to let mortgages in our FAQs
The buy to let mortgage application is similar to a residential mortgage application but with a few differences. These differences include the amount you could borrow and how much deposit you will need.
What is buy to let mortgage eligibility criteria?
The following criteria applies for NatWest buy to let mortgage applications:
- You're a UK resident aged between 18 and 80
- Your expected rental income to be at least 125% of your monthly interest payments
- You have at least a 25% deposit, or 35% for any new build houses or flats
- The property is worth at least £50,000
- You're borrowing at least £25,000 over a minimum of 3 years
- Your total aggregated borrowing with NatWest brands will be less than £3.5 million
We will not consider multiple tenancies, Homes of Multiple Occupancy (HMO), bedsits, ‘Related Person’ tenancies, properties that fall under a selective licensing scheme or properties that will be used as a holiday home or holiday let.
You cannot apply for a buy to let mortgage with us if you do not meet the above criteria.
How much can I borrow with a buy to let mortgage?
It depends on multiple factors including the property value, amount of deposit and rental income for the property. You could borrow up to a maximum of £3.5 million (in total across NatWest brands) with our buy to let mortgages.
How much deposit do I need for a buy to let mortgage?
You will need a deposit of at least 25% to be eligible for a buy to let mortgage or, if you’re looking to buy a new build flat or house, you’ll need a minimum deposit of 35%.
Mortgage rates for buy to let
Mortgage interest rates are the percentage fee charged on a mortgage loan by the lender. These might be be different depending on the type of mortgage you are taking. Buy to let mortgage rates are also subject to change at any time. You can find our latest buy to let mortgage rates by using our rate finder tool and selecting the right buy to let option when filtering.
Steps to getting your buy to let mortgage
Learn more about purchasing a buy to let, becoming a landlord and the responsibilities and costs involved in letting out a property.
Learn about buy to let mortgages
Typically buy to let mortgages are based on rental income and lenders will generally expect it to be at least 125% of the monthly repayments on your mortgage. This is called the Interest Coverage Ratio (ICR).
Often, buy to let mortgages are interest only, meaning you'd only pay the interest off every month. However, it's important to have a payment plan in place for the end of the mortgage term.
When considering a buy to let mortgage, you may also want to consider the other costs involved in buying a house, such as valuation fees, legal fees and stamp duty. You should also check whether you meet our buy to let mortgage eligibility.
Research the property market
Research is important when buying a buy to let property. The costs, rental income and rental tenancy demand will vary by area, so understanding the local market will help you make a more informed decision if you do buy a property to rent out.
You may also want to consider whether a property is freehold or leasehold as this could affect whether the property can be rented out or not.
Select your location and start viewing properties
Now you can start looking for the property that best suits your needs and your potential tenants' needs. If you're looking to buy further afield, you might want to consider using a letting agent to manage the property on your behalf.
Agreement in Principle
Get an indication of how much you could borrow with a buy to let Agreement in Principle (sometimes called an AIP or Mortgage in Principle). This puts you in a great place to start your search for a buy to let property and it takes less than 10 minutes.
Know your rental income
Understand what your rental income could be. You should consider all of the costs of renting out a property, including mortgage payments, bills, maintenance, insurance and agent fees (if applicable), as well as covering costs for periods of time when the property may be vacant.
Find out how to calculate the rental yield.
Choose your buy to let mortgage
Getting a buy to let mortgage differs to getting a residential mortgage. The amount you can borrow is mainly based on expected rental income, so keep this is mind.
You can choose from fixed rate or tracker rate (currently not available with NatWest), as well as interest only or capital repayment mortgages. They all have pros and cons to consider when deciding what suits your needs.
Prepare what you'll need to apply for your buy to let mortgage
There are things you can do ahead of applying to help make the process smoother. Read through our helpful guide about preparing to apply for your mortgage.
Also consider the documentation that you will need to have available when you apply.
How to apply for a buy to let mortgage
Find out what are the steps to applying for a buy to let mortgage and what information you need to have to complete a buy to let mortgage application.
Understand landlord responsibilities
Once you've bought your property, our landlord's checklist provides helpful information around some of the considerations when becoming a landlord.
Green buy to let mortgages
- Discounted mortgage rates when purchasing or remortgaging an energy efficient property with a valid Energy Performance Certificate (EPC) rating of A or B with a green mortgage.
- Available on selected products marked with 'Green Mortgage'. Exclusions and eligibility criteria applies. Product fees apply. Max LTV 75% (for new build flats or houses a maximum LTV of 65% applies).
Buy to let mortgage frequently asked questions
How do buy to let mortgages work?
Buy to let (BTL) mortgages are similar to the residential mortgages you find but there are differences when it comes to a buy to let mortgage, including: minimum deposit requirements, interest rates, minimum property value requirements and borrowing limits.
How can I remortgage my buy to let?
If your mortgage is up for renewal and you are looking to remortgage to us, you can complete a buy to let Agreement in Principle (AIP) to compare our mortgage rates and find out how much you could borrow.
Can a first time buyer get a buy to let mortgage?
Can I change my existing mortgage to a buy to let?
It is relatively common for people to change residential mortgages to buy to let. If you have a NatWest residential mortgage, it's best to contact us to understand if this could be an option for you.
This will depend on a number of factors, including your existing mortgage type and existing mortgage terms.
Are buy to let mortgages interest only?
BTL mortgages are most commonly interest only mortgages, but we offer both capital and interest and interest only mortgage types for buy to let.
With an interest only mortgage, you only pay off the interest on a monthly basis throughout the term of your mortgage, however at the end of your term you are required to pay off the capital debt (the outstanding mortgage amount) in full. With a capital and interest mortgage, you pay off both the capital debt and the interest on a monthly basis.
How can I work out the rental yield?
Working out the rental yield of your property helps you understand what rent to charge to ensure your buy to let investment is profitable. You can work out your rental yield by using the following calculation:
- Multiply your monthly rental income by 12 (months in a year).
- Minus any annual costs of owning the property e.g. mortgage payments, insurances, fees.
- Divide that by the purchase price of the property or the current market value.
- Multiply the figure by 100 to get a percentage.
You can also use sites like Zoopla to get an idea of how much similar properties are being let out for.