Your buy to let guide
NatWest mortgages are available to over 18s. Your home or 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.
Steps to becoming a landlord
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 tend to look for this to be at least 125% of the monthly repayments on your mortgage. This is called the Interest Coverage Ratio (ICR).
Usually, buy to let mortgages are interest only and therefore you'll only need to pay the interest off every month. This can be seen as a benefit in the short term as it helps minimise your outgoings. 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 should make sure you understand the other costs such as valuation fees, legal fees and stamp duty.
Research the property market
Doing your research is important when buying a buy to let property. The costs, rental income and tenancy demand will vary across different areas, so understanding the market will allow you to make a more informed decision when you do buy a property to let.
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. Depending on where you purchase, you might want to consider using a letting agent if you're looking to buy further afield or you may want to manage the property yourself if it's close by.
Know your rental income
Understand what your rental income could be. You should consider the overall costs of renting out a property, including: mortgage costs, bills, maintenance, insurance, agent's fees (if you choose to use an agent), 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 is different compared to residential mortgages. The amount you can borrow is mainly based on rental income that you are expecting to gain from renting out the property, so keep this is mind.
They all have pros and cons that you will need to consider when making a decision on what suits your needs.
Find out what mortgages we could offer by using our mortgage calculator.
Once you've bought your property, you can take a look at our Landlord's checklist.
Get an Agreement in Principle
With an Agreement in Principle, you’ll find out how much you could borrow. This puts you in an ideal place to start your search for a buy to let property.
Get a personalised answer in 5 to 15 minutes
No impact on your credit file
Next step: browse our mortgages and apply