Buy-to-let purchases come with some special considerations.

Lenders typically assess the property’s rental potential – for example, requiring that the expected rent covers a certain percentage of the mortgage interest (known as the interest cover ratio). You’ll usually need a larger deposit than for a residential mortgage (25% or more is common) and interest rates can be slightly higher.

Additionally, if you’re a first-time landlord, some lenders have stricter criteria or may require you to own a residential property already. Choosing the right property is crucial too – the rental yield should comfortably cover costs, and factors like location and property type will affect both your rent and mortgage options. It’s also important to keep an eye on market conditions (such as interest rate changes and landlord regulations) that could impact your investment’s profitability.

Xcel Finance makes purchasing a buy-to-let property easy and rewarding.

We start by understanding your goals – whether it’s maximising monthly income or aiming for future capital growth – and then we tailor the mortgage solution accordingly. Our advisers have deep knowledge of lender criteria across the market, so we can identify the best lender for your circumstances (for example, lenders open to first-time landlords or those offering high loan-to-value deals).

We’ll negotiate competitive terms on your behalf, ensuring you get a great interest rate and favourable conditions for your loan. Importantly, we handle the entire process from start to finish: from helping you prepare a strong application to liaising with lenders, surveyors, and solicitors to keep everything on track. With no upfront broker fees and speedy service.

The result?

You save time, reduce stress, and get a bespoke mortgage that sets your investment up for success. If you’re considering a buy-to-let purchase, our team is ready to guide you – ensuring your new property investment is both profitable and pain-free.

While remortgaging can be very beneficial, there are a few challenges to navigate.

Timing is important – remortgaging too early could incur early repayment charges on your existing loan, so we always check the best timing to avoid unnecessary fees.

The process will require a new property valuation, and sometimes landlords are surprised if a valuation comes in lower than expected (which can affect how much you can borrow).

Lender criteria may also have tightened since you last took out a mortgage; for example, after recent interest rate rises, some lenders now require higher rental coverage (they might insist that the rental income covers 125% or 145% of the mortgage payments at a stressed interest rate).

If your current rent doesn’t meet these stricter tests, borrowing the amount you want can be challenging with certain lenders. Additionally, if you’ve expanded your portfolio, some lenders have limits on the number of properties or total borrowing you can have – which could affect your remortgage options.

All these variables mean it’s vital to choose the right lender and product when refinancing.

Our expert brokers at Xcel Finance make the remortgage process smooth and advantageous for you.

We begin by reviewing your current mortgage and goals:

Are you aiming to save on interest, raise capital, or both? With that in mind, we scour the entire market to find a remortgage deal that best achieves your objectives.

Because we work with all types of lenders – from high-street banks to specialist buy-to-let lenders – we can find options even if other banks have said no. We’ll pinpoint lenders that can accommodate your needs (for example, those who offer flexible rental stress tests or higher loan-to-value for equity release).

Once we find the ideal product, we handle the paperwork and negotiations. Our team will manage the valuation, lender application, and legal process, keeping you updated at every step so there are no surprises. The goal is to complete your remortgage with minimal hassle and downtime, so you can immediately start benefiting – whether that’s enjoying lower monthly payments or putting your released funds to work on a new project. In short, we use our know-how to ensure your remortgage adds value to your investment strategy.

Talk to us about your buy-to-let remortgage – we’ll save you time, money, and effort while unlocking the best possible deal for you.

Key Complexities to Consider:

Financing a multi-unit freehold block is a bit more complex than a standard buy-to-let. Not all lenders offer MUFB mortgages – it’s a niche product – and those that do often have specific limits. For example, a lender might cap the number of units at, say, 4 or 6 in one freehold for their buy-to-let range; if your block has more units than their limit, you’d need to go to a specialist or commercial lender.

Lender criteria will also consider the composition of the units. They usually require each unit to be self-contained (with its own kitchen, bathroom, etc.), and of a minimum size (tiny studio flats below a certain square footage might be declined by some).

The valuation process for MUFBs can be different: sometimes the lender will value the whole block as one investment (known as an investment value), and sometimes on a break-up value (what it would be worth if sold as individual flats) – this can affect how much they’ll lend. You might find the maximum loan-to-value (LTV) is a bit lower for multi-unit blocks (75% LTV is typical, but some lenders might prefer 70% or require you to put down a larger deposit for very large blocks).

Additionally, landlord experience is a factor; many lenders will want you to have prior landlord experience before lending on a multi-unit property, since it’s considered a step up in complexity. Managing multiple tenancies means more responsibility, so they’ll be more comfortable if you’ve managed other rentals successfully. Another challenge can be the exit strategy – think ahead about how you plan to use or dispose of the property in the long run. If you ever wanted to sell units individually, you’d have to split the title and potentially refinance each unit, which requires careful planning.

Lastly, the legal process can be a bit more involved (your solicitor will need to ensure the title covers all units properly, and lease agreements if any unit is leasehold within the block, etc.).

In short, MUFBs are fantastic investment assets, but the financing and management require a knowledgeable approach and specialist lender selection.

Xcel Finance has the expertise to navigate the multi-unit freehold mortgage market for you.

We understand that MUFB investments often form a key part of a professional landlord’s strategy, and we’re here to make it happen smoothly. When you consult with us, we’ll discuss your property – How many units? All residential or mixed-use? – and your goals.

With that, we pinpoint the lenders best suited for your project. Because we welcome complex property types like multi-unit freeholds, we have established relationships with specialist lenders who cater to these loans. We know, for example, which lenders are comfortable with larger blocks of 10+ units, or which ones offer the highest LTV for a 4-flat block.

Our whole-of-market access ensures that even if mainstream banks can’t help, the niche lenders we work with can step in. We’ll guide you through the application requirements, which can be a bit different – for instance, helping you prepare a schedule of rents for all units, and making sure the valuer gets the right information to appraise the block.

If you’re acquiring a MUFB, we can arrange an Agreement in Principle quickly so you have confidence (and proof) of financing when negotiating the purchase. If you’re refinancing, we’ll work to get you a better rate or a higher loan amount (if you’re releasing equity), by presenting the strong rental performance of your units to the lender.

As always, we manage the end-to-end process: from application to valuation and through to completion, keeping you updated at each milestone. Financing a multi-unit property might seem daunting, but with Xcel by your side it becomes a straightforward, transparent process. Our clients often remark that we made a typically “commercial” style deal feel as easy as a standard mortgage – that’s our aim.

So whether you’re buying your first block of flats or refinancing a portfolio of multi-unit buildings, you can rely on Xcel Finance to secure the ideal MUFB mortgage that propels your investment strategy forward.

While HMOs offer great returns, they do come with added complexity.

Firstly, regulation is a big factor – many HMOs require a license from the local council, and you must ensure the property meets specific safety standards (fire alarms, emergency exits, etc.). There are also often planning rules (for example, certain areas have Article 4 directions removing permitted development rights for small HMOs), so you need to ensure the property is allowed to be an HMO. Lenders pay close attention to these factors; they will usually require proof of any necessary HMO license and may have their own definition of what counts as an HMO.

Managing an HMO is generally more hands-on than a single-let: you’ll be dealing with multiple tenants, more frequent turnover, and higher wear-and-tear on the property. It’s important to know that HMOs can have higher tenant turnover and increased maintenance costs compared to standard buy-to-lets so factor in letting agent fees or your time in managing the property.

From a financing perspective, not every lender offers HMO mortgages. Those that do often have stricter criteria: for instance, some require you to be an experienced landlord (or even have prior HMO experience) before they’ll lend, and they might ask for a larger deposit (sometimes 25-30% or more) as well as a strong credit profile. Interest rates on HMO mortgages can be slightly higher due to the perceived risk of multiple tenants.

Additionally, lenders often cap the number of rooms (for example, many will finance up to 6-bedroom HMOs, but fewer will go beyond that into large HMO territory). All these factors make it crucial to choose the right lender – one that understands your HMO strategy and accepts your specific scenario (property size, your experience level, etc.).

Attempting to use a standard buy-to-let mortgage on an HMO property is not advisable, as it could breach mortgage terms if the lender doesn’t permit multiple tenants. In short, HMO investing is rewarding but complex, requiring careful navigation of rules and lender requirements.

This is where Xcel Finance’s expertise truly makes a difference.

We are specialists in HMO financing, guiding many investors through purchasing or refinancing multi-let properties. Our role is to simplify the complexity for you.

We start by reviewing your HMO plan – the property details, number of tenants, your landlord experience – and then we identify the ideal lenders who can support that plan. Only a limited number of UK lenders actively offer HMO mortgages, and each tends to have its own rules about what they’ll lend on.

Thanks to our extensive lender network and experience, we know exactly which lenders are best for, say, a 5-bed licensed HMO for a first-time HMO landlord, versus a 8-bed student house for a seasoned investor. We’ll match you to the right lender from the start, avoiding wasted time with applications that may get declined elsewhere. Our team also helps you package your application to meet the stricter criteria HMO lenders have – we’ll ensure you have the needed documentation (license, tenancy agreements, etc.) and highlight your strengths (for example, other landlord experience or a professional managing agent in place) to give the lender confidence.

Working with a knowledgeable broker greatly improves your chances of approval and a good rate on an HMO mortgage, and that’s exactly the advantage we offer. We’ll negotiate competitive terms on your behalf and walk you through the process step by step.

Throughout, you’ll have a dedicated adviser who can answer all your questions about HMO licensing, insurance, or anything else. In the end, our goal is to secure your HMO mortgage with minimal fuss, so you can start enjoying those higher rental returns.

Many clients who started with one HMO through us have since grown to multiple HMOs, thanks to the success of that first project. If you’re looking at an HMO investment, make Xcel Finance your first call – we’ll help you unlock the door to higher yields with a tailored, reliable financing solution.