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Becoming a landlord is not complicated, but it is a sequence, and doing it in the wrong order costs money. This guide covers the whole path: the money, the mortgage, the rules you are signing up to, and the ownership decision most people leave too late.
The two ways people become landlords
The deliberate route is buying a property specifically to rent out, with a buy to let mortgage. The accidental route is ending up with a home you no longer live in, through inheritance, moving in with a partner, or a house that would not sell, and letting it instead. The steps below focus on the deliberate route; if you are in the second camp, my guide to the accidental landlord is written for you.
Step one: the money
Two numbers decide whether the plan works. The deposit: plan on 25% of the purchase price, because buy to let lending normally tops out at 75% loan to value, and my guide to buy to let deposits covers the detail. And the rent: it needs to cover the mortgage payment with a margin at the lender’s stress rate, which the stress test guide explains with real local numbers.
Two routes in: buying a rental with a buy to let mortgage, or letting a home you already own
Plan on a 25% deposit and rent that covers the mortgage with a margin at the lender’s stress rate
Plenty of lenders take first time landlords, criteria just vary more than usual
The Renters’ Rights Act changed the rules from May 2026, know them before you buy
Decide personal or limited company ownership before you apply, not after
Step two: the mortgage
Buy to let mortgages are assessed mainly on the rent, and plenty of lenders will take a first time landlord, though criteria vary more here than almost anywhere else. Start with the buy to let guide for how the product works, and the application process guide for what actually happens after you apply.
Step three: the rules you are signing up to
Being a landlord is a regulated activity in everything but name. Since May 2026 the Renters’ Rights Act governs tenancies, notice and possession. Gas safety needs an annual check, the electrics need an inspection at least every five years, the property needs an energy certificate that meets the minimum standard, tenancy deposits must go into a protection scheme, and you must check tenants’ right to rent. Let the property to three or more unrelated sharers and it becomes an HMO, with licensing on top once five share.
Step four: decide how you will own it
Personal ownership or a limited company changes the mortgage, the tax and the paperwork, and it is far easier to decide before buying than to move a property into a company later. My guide to company or personal ownership lays out the trade-offs; the tax side of the decision belongs with an accountant.
What does being a landlord actually cost?
More than the mortgage. Budget for void periods between tenants, maintenance and repairs, letting agent fees if you use one, insurance, safety certificates, and tax on the rental income. My guide to buy to let tax covers the shape of it; the numbers for your case are accountant territory.
Speak to an expert
Thinking about your first rental property? Call me on 01425 203055 or email info@htgmortgages.com. I will run the numbers before you offer.
Is 2026 a good time to become a landlord?
Honest answer: it depends where and what you buy. Some landlords are selling up, which cuts competition and creates buying opportunities, but the same pressures they are leaving behind, tighter rules and yield-sensitive lending, apply to you from day one. The properties that work are the ones where the yield genuinely passes a lender’s test, and in my patch that varies street by street.
The order to do it in
Numbers first: deposit, target rent, stress test. Then a decision in principle, so you know your ceiling and estate agents take you seriously. Then the ownership decision with an accountant. Only then start viewing. People who fall for a property first and check the lending second are the ones who end up forcing bad numbers.
Start with the numbers, not the property
Tell me your deposit and the kind of property you have in mind, and I will tell you what the rent needs to be and which lenders fit a first time landlord in your position. Book a call, phone 01425 203055, or WhatsApp 07731 675537.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
