Separating fact from fiction in the world of landlord finance
Buy-to-let mortgages have evolved dramatically in recent years. Yet despite their popularity, misinformation and confusion continue to circulate among landlords and investors. From misconceptions about deposit sizes to false assumptions about affordability rules, these myths can prevent landlords from accessing the best deals—or worse, from growing their portfolios at all.
At NetRent, we speak to landlords every day who have been misled by common buy-to-let myths. Here, we set the record straight.
Myth 1: You Need a Massive Deposit to Get Started
Reality: While large deposits can unlock better rates, you don’t always need a fortune to begin your property journey.
Most lenders require a minimum deposit of 25% for a standard buy-to-let mortgage, but in some cases, 20% may be enough—especially if the property has strong rental income or you’re using a specialist lender.
Some landlords even use equity from existing properties (via remortgaging) as their deposit for the next investment. This recycling of equity is a key strategy for building a portfolio faster.
Tip: A specialist broker like NetRent can help identify lenders offering lower deposit options for experienced landlords.
Myth 2: You Can’t Get a Buy-to-Let Mortgage Through a Limited Company
Reality: You absolutely can—and many landlords now prefer it.
Limited company buy-to-let mortgages have become increasingly common due to potential tax advantages and greater flexibility in reinvesting profits. While not every lender offers them, specialist lenders do, often with competitive terms tailored to professional landlords.
Limited company structures can also make equity release and portfolio lending more efficient.
Important: Always seek professional tax advice before setting up a company, as benefits vary by individual circumstances.
Myth 3: You Can’t Get a Buy-to-Let Mortgage if You Already Own Several Properties
Reality: Owning multiple properties doesn’t restrict you—it enhances your position.
High street banks can be cautious about portfolio landlords, but specialist lenders actively welcome them. They assess the strength of your overall portfolio, not just individual yields. This means seasoned landlords often have greater borrowing power, not less.
Portfolio lending allows for consolidated products, flexible repayment structures, and smarter equity utilisation.
Myth 4: You Can’t Remortgage If Your Tenant Has Changed Recently
Reality: Tenant turnover is normal, and it rarely disqualifies you from remortgaging.
While lenders prefer stability, a professional broker can explain the situation and demonstrate rental continuity using tenancy agreements or rental statements. Many specialist lenders are far more flexible than high street banks in this respect.
In short: As long as your property is rentable and managed responsibly, tenant changes shouldn’t hold back your remortgage.
Myth 5: Interest-Only Mortgages Are Too Risky
Reality: For landlords, interest-only mortgages are a common and effective strategy.
With an interest-only loan, you pay only the monthly interest rather than reducing the capital. This keeps cash flow higher, allowing landlords to:
-
Reinvest profits into new properties.
-
Maintain better liquidity.
-
Manage large portfolios efficiently.
The key is having a clear repayment plan, whether via property sales, equity release, or portfolio restructuring later on. Managed responsibly, interest-only lending can be a smart tool for long-term investors.
Myth 6: All Lenders Offer the Same Buy-to-Let Deals
Reality: Nothing could be further from the truth.
Each lender has its own criteria, rates, and appetite for different property types. High street banks often focus on low-risk, straightforward cases. Specialist lenders, however, are designed for landlords with complex needs—such as HMOs, multi-unit blocks, limited companies, or high-value portfolios.
Result: Working with a specialist broker like NetRent opens access to lenders and products you won’t find on comparison sites or the high street.
Myth 7: The Application Process is Too Complicated
Reality: With the right broker, the process is smoother than ever.
Most lenders now use digital submission systems, and brokers like NetRent handle the paperwork, valuation coordination, and legal communication for you. Landlords who work with experienced intermediaries often complete remortgages in half the time compared to applying directly.
If your documents are ready—tenancy agreements, rental statements, and proof of ownership—the process can be straightforward and efficient.
Case Example: Busting the Myths in Action
Example: Lisa, a self-employed landlord with three rental properties, believed she couldn’t remortgage because her income varied and one property had just changed tenants.
After consulting NetRent, she discovered:
-
A specialist lender that accepted variable income.
-
Flexibility for recent tenant changes.
-
A remortgage deal that allowed her to release £60,000 in equity for her next purchase.
Today, Lisa owns five properties and has used strategic refinancing to expand her portfolio responsibly.
The Bottom Line
The buy-to-let landscape is evolving, and so are the opportunities. Don’t let outdated information or misconceptions limit your potential. Whether you’re new to investing or managing a growing portfolio, understanding how the market really works can save you time, stress, and money.
At NetRent, we specialise in tailored mortgage solutions designed for real landlords—not textbook borrowers. From your first property to your fiftieth, we’ll help you secure the right mortgage for your goals.
📞 Telephone: 01352 721300
📧 Email: mortgages@netrent.co.uk