Buy To Let Mortgage | Scotland

Navigating the Scottish buy-to-let (BTL) market in April 2026 requires balancing strict financial criteria with local tax and regulatory obligations. Unlike residential lending, BTL mortgages in Scotland are primarily assessed on the property's rental potential rather than just your personal income.

Lenders use an Interest Coverage Ratio (ICR) to ensure rent covers mortgage interest. Typically, you need a rental income of 125% to 145% of the monthly mortgage payment, often "stressed" at a higher interest rate (e.g., 5.5% or 7.5%) to ensure sustainability. buy to let mortgage scotland

In Scotland, you pay Land and Buildings Transaction Tax (LBTT) instead of UK Stamp Duty. Buy-to-let mortgages explained - MoneyHelper Navigating the Scottish buy-to-let (BTL) market in April