Which finance fits your plan?
This table is a starting point, not a recommendation. Many purchases could use more than one route, and the right answer depends on your circumstances, the property, and what lenders are willing to consider at the time.
| What you're doing | Usual finance type | Read more |
|---|---|---|
| Buying a single let property to rent to tenants | Residential buy-to-let mortgage | Buy-to-let mortgages |
| Holding property through a limited company | Limited company buy-to-let mortgage | Limited company finance |
| Buying a business premises or investment unit | Commercial mortgage | Commercial mortgages |
| Buying a mixed residential and commercial building | Semi-commercial mortgage | Semi-commercial |
| Buying at auction against a deadline | Bridging finance, or a mortgage if the timescale allows | Auction finance |
| Buying a property that needs refurbishment before letting | Refurbishment bridging, then a remortgage | Bridging finance |
| Ground-up building or major conversion work | Development finance (a separate facility) | Tell us about your development project |
| Buying land with or without planning permission | Land bridging | Land bridging |
| Releasing equity from a property you already own | Remortgage or further advance | Releasing equity |
| Changing your existing mortgage deal | Remortgage | Remortgaging |
Some scenarios — HMOs, holiday lets and larger portfolios, for example — fall outside a standard buy-to-let mortgage and need lenders who specialise in that type of letting. We cover the general position for these below; speak to us about your specific plan.
Letting residential property
Residential buy-to-let
A standard buy-to-let mortgage is for a single self-contained property let to tenants on an assured shorthold tenancy. Lenders usually assess the rental income the property can achieve against the mortgage payment, using an interest cover ratio, alongside your deposit and overall circumstances. See our
Our buy-to-let mortgages page covers the basics, and our rental yield guide and buy-to-let calculator can help with early numbers.
Limited company
Many investors now buy through a limited company (often a special purpose vehicle). This changes how tax and lending criteria apply, and lenders assess the company and its directors differently to an individual. See our
guide for limited company directors. Different tax treatment may apply to company ownership versus personal ownership — take independent tax advice before deciding.
Portfolio landlords
If you already hold, or plan to build, four or more mortgaged buy-to-let properties, you're usually treated as a 'portfolio landlord'. Lenders then look at your whole portfolio — overall borrowing, experience and cash flow — not just the property being financed, which can affect which lenders will consider your application.
If you're refinancing existing lets, see our guide to buy-to-let remortgages and an anonymised portfolio refinancing case study.
HMOs and multi-unit
Houses in multiple occupation (HMOs) and multi-unit freehold blocks are let room-by-room or as several self-contained units. They usually need a specialist mortgage rather than a standard buy-to-let product, and local licensing rules may apply. We can talk through what's involved and the lenders who may consider this type of letting.
Holiday lets
Short-term and holiday letting is assessed differently from standard tenancies, usually against seasonal income projections rather than a single AST rent. This needs a specialist holiday-let mortgage; we can explain how lenders approach it.
Commercial and mixed-use investment
If you're buying a business premises, an investment unit let to a commercial tenant, or a mixed residential-and-commercial building, this usually falls under commercial or semi-commercial lending rather than a residential buy-to-let mortgage. Commercial lenders look at lease terms, tenant covenant strength, and debt service cover rather than a standard rental stress test. Visit our commercial mortgages hub for the full picture, including business premises, commercial buy-to-let, farms and agricultural land.
Buying at auction
Auction purchases come with a contractual deadline that is usually much shorter than a standard mortgage can complete within, which is why many auction buyers use bridging finance to complete, then refinance afterwards onto a standard mortgage. The deadline is set by the contract and auction house, not by any finance provider.
Read our auction finance guide for how the process works, or go straight to auction bridging finance if you already have a property in mind.
Refurbishing or developing
Refurbishment
Light to moderate refurbishment — redecoration, a new kitchen or bathroom, cosmetic repairs — can often be funded through a refurbishment bridging loan, with the property refinanced onto a standard mortgage once the work is complete and the property is let or lived in.
Development finance
Ground-up building, major structural work, or large-scale conversions usually need a development finance facility rather than an ordinary bridging loan — typically drawn down in stages against the cost of works, with a monitoring surveyor overseeing progress. There is no dedicated development finance page on this site, but we can discuss development finance as a separate facility if this applies to your project.
Land
Buying land — with or without planning permission — carries its own risks around planning and valuation, and is usually financed separately from the building works that follow. See land bridging for more detail, and our wider bridging finance hub for how bridging works more generally, including bridging for refurbishment and development.
Remortgaging and raising capital
Many investors fund their next purchase, or a refurbishment, by remortgaging an existing property or taking a further advance to release some of the equity in it. See remortgaging and releasing equity for how this works, and second-charge mortgages if you want to keep your existing mortgage in place and add a second loan behind it.
Interest-only lending
Interest-only lending is common for investment property, since it keeps monthly payments lower and the capital is repaid later — usually from sale, refinancing or other funds. Lenders will want a credible repayment strategy for the capital. See interest-only buy-to-let mortgages and, for commercial lending, interest-only commercial finance.
Property types and lender criteria
Some property types attract extra scrutiny from lenders — non-standard construction, flats above commercial units, properties needing significant work, or purchases below market value. These don't rule out finance, but they narrow which lenders will consider the case. See our property types hub, including flats above shops, fixer-uppers and below market value purchases. If you're planning to build your own home, see our self-build mortgage guide.
How our advice is paid for
Initial advice is free. If you go ahead, any fee will be explained and agreed with you in writing before chargeable work begins. A lender or finance provider may also pay commission.
We will assess your requirements and explain the finance routes that may be available. Where specialist support or an introduction is required, we will explain who will handle the case and any associated costs or commission.
We handle residential and buy-to-let mortgages, including Ltd Co buy-to-let, directly within our permitted service. For commercial and other specialist finance, our team will discuss your requirements and, where appropriate, identify a suitable partner adviser. We will explain who they are and obtain your permission before sharing your details.