The different types of landlord: a quick overview

Updated on:
20 September, 2019

Considering becoming a buy to let landlord? Unfortunately, it’s not as simple as finding a likely property and filling it with tenants. There are many different ways of being a landlord, and the availability of buy to let mortgages will vary depending on which area of the market you plan to enter.

To help you get started, our brokers have compiled a quick run down of some key differences, along with some relevant considerations.

New landlords

Looking to become a buy to let landlord – and planning to purchase in your own name? Buy to let mortgages are widely available. But changes to stamp duty several years ago mean you’ll pay a higher rate of tax on a second property – and you should also be mindful of changes to tax relief.

Accidental landlords

We regularly deal with clients who have lived in a property previously, but now plan to let it out. This often includes homeowners who are buying another larger property, often with a partner, but want to retain ownership of their original asset as an investment.

This category also includes expat clients who have moved abroad for work or retirement purposes, but wish to keep a foothold in the UK property market. Arranging buy to let mortgages for expats is definitely more challenging than for a UK-based landlord – but we can advise on all types of expat property finance, if this sounds like you.

Portfolio landlords

From a lender’s point of view, a portfolio landlord is one with four or more mortgaged properties. Mortgages for portfolio landlords work slightly differently, with lenders looking at the entire portfolio of assets, and taking your overall borrowing into account.

HMO landlord

Houses in Multiple Occupation (HMOs) are defined as properties rented out by a minimum of three people who are not from a single household. Gross yields are typically higher, as a landlord can rent out rooms individually. Tenants often prefer this, too, as an individual room in a HMO is usually cheaper than a one bedroomed property.

On the flip side, financing and running a HMO can be a great deal more work. Some lenders will only provide HMO mortgages to experienced landlords – and interest rates may be higher.

Student landlord

Student accommodation is another viable option. You may want to invest in smaller residential properties, typically occupied by second/third year or postgraduate students. We often work with parents who are purchasing student property with a view to their own children living in them, for example.

Or, you may be looking to invest in a block of student accommodation, which will require a commercial property loan. Our brokers have experience in both of these areas and can advise accordingly.

The next steps: exploring your buy to let mortgage options

If you’re looking at entering the world of buy to let property, sourcing the right mortgage is essential. And whatever sort of investment you’re exploring, you’ll need to stay up to date with recent buy to let developments.

Our guide, Navigating the changing world of buy to let finance, can help.


Proven Expertise

Our specialist mortgage brokers are highly experienced in negotiating the best mortgages and mortgage rates, no matter how complex your situation.

With over 20 years’ combined experience sourcing the best mortgage deals for global clients, our brokers have the skills, knowledge, and lender relationships to turn your property aspirations into a reality. To find out how we do it, explore our case studies.

View our case studies

Need Assistance?

Whether you’d like to make a finance enquiry or simply have a question about our services, we’re on hand to help.

Contact Us