Question 1

What's a portfolio landlord?

Accepted Answer

A portfolio landlord is a landlord with four or more mortgaged buy-to-let properties. Lenders apply stricter stress testing for portfolio landlords, often assessing the whole portfolio's rental coverage and equity rather than just the new application — so a property that would qualify on its own may fail if your overall portfolio is over-leveraged.

Question 2

How is rental coverage calculated?

Accepted Answer

Rental coverage (also called ICR — interest coverage ratio) is monthly rent divided by the lender's stress-tested monthly interest payment. Most lenders require 125%–145% depending on tax band and rate type. Stress rates are typically 5.5%–7% (or pay rate + 2% on 5-year fixes) — so even today's lower rates don't loosen the ICR test much.

Question 3

Can a limited company get a buy-to-let mortgage?

Accepted Answer

Yes — limited company BTL is one of the fastest-growing parts of the market because mortgage interest is fully deductible against rental profits. Specialist lenders dominate this space. Personal guarantees from directors are usually required, and SPV (special purpose vehicle) Ltd Cos are preferred over trading companies.

Question 4

What's top slicing?

Accepted Answer

Top slicing lets you use surplus personal income to bridge a rental coverage shortfall. So if the rent doesn't quite stress-test, lenders that allow top slicing will count your day-job income to cover the gap. Helpful for higher-rate taxpayers in low-yield areas like London.

Question 5

Do I need a 25% deposit for buy-to-let?

Accepted Answer

75% LTV is the most common BTL ceiling, so yes — a 25% deposit unlocks the widest choice. A few lenders go to 80% LTV at higher rates; specialist lenders may go to 85% for portfolio landlords with strong rental yield. Below 75% LTV (lower-risk) rates improve significantly.

Question 6

Is buy-to-let still worth it after Section 24?

Accepted Answer

It depends on your tax band and structure. Higher-rate taxpayers holding properties personally are most affected by Section 24 (no mortgage interest deduction, just a 20% credit). Many landlords have moved to limited company structures where full deduction is preserved. Yield, location, and gearing matter more than ever.

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