Property has long been seen as one of the most reliable ways to build wealth — and even with market changes in recent years, Buy-to-Let (BTL) investments continue to attract new and experienced landlords alike.

Whether you’re looking to buy your first rental or expand your portfolio, understanding the key factors involved can make the difference between a smooth, profitable experience and an expensive learning curve.

At Mc Daid Mortgages, we help landlords across the north of Ireland make informed, confident decisions. Here’s our guide to what you should know before taking the plunge.

1️⃣ Understanding How Buy-to-Let Mortgages Work

A Buy-to-Let mortgage is designed specifically for properties that will be rented out rather than lived in by the owner. Unlike a standard residential mortgage, lenders base their decision primarily on the expected rental income, as well as the borrower’s personal circumstances and experience as a landlord.

Typically, lenders require:

• A larger deposit, often 25% or more of the property’s value.
• Evidence that the expected rent will cover at least 125–145% of the monthly mortgage payment.
• Proof of stable personal income, even if the rental covers most of the loan.

At Mc Daid Mortgages, we work with a wide panel of lenders — including those who consider first-time landlords — to help you find the right product for your goals.

2️⃣ Calculating the True Cost

It’s important to think beyond just the mortgage payment. Other costs include:

• Landlord insurance
• Property maintenance and repairs
• Letting agent fees (if used)
• Periods without tenants (voids)
• Income tax on rental profit
• Stamp duty surcharge for second properties

We’ll help you map out your real costs and potential returns before you commit — so you know exactly where you stand from day one.

3️⃣ Choosing the Right Property

The right property can make all the difference to your success as a landlord.
Consider:

• Location: Tenants want good transport links, schools, and amenities.
• Demand: Areas with universities, hospitals, or large employers often offer strong rental demand.
• Condition: A well-maintained property attracts better tenants and fewer problems.

Our advisers can share insights into local demand across the north of Ireland, helping you spot strong investment opportunities.

4️⃣ Fixed or Variable Rates – Which Is Best?

Like residential mortgages, Buy-to-Let products come with fixed, tracker, or discounted variable rates.

• Fixed rates give stability — you know exactly what your payments will be for a set period.
• Variable rates can be cheaper initially but fluctuate with market changes.

We’ll explain each option in plain English and help you choose the one that suits your cashflow and risk tolerance.

5️⃣ Limited Company vs Personal Name

More landlords are now considering buying through a Limited Company, as it can be more tax-efficient — particularly for higher-rate taxpayers.

However, this route involves:

• Higher interest rates
• More complex setup and ongoing accounting costs
• Limited lender choice

It’s essential to weigh up the pros and cons carefully — and we can connect you with independent tax professionals if needed.

6️⃣ Recent Market Trends

The Buy-to-Let landscape has changed in recent years:

• Higher interest rates have increased borrowing costs.
• Tougher affordability tests have limited how much landlords can borrow.
• Rental demand has grown sharply as fewer people can afford to buy.

The result? Despite higher borrowing costs, many landlords are still seeing strong returns because of rising rental yields and limited supply of quality rental homes.

At Mc Daid Mortgages, we keep our clients updated on rate changes, tax adjustments, and new lender criteria — so you can stay ahead of the market.

7️⃣ The Importance of Advice

With so many moving parts — lending criteria, tax rules, property values, and rental yields — getting professional advice is more valuable than ever.

We don’t just find a mortgage; we help you build a sustainable investment strategy. Whether you’re buying one property or planning a portfolio, we’ll guide you through every stage — from the first conversation to the day you collect the keys.

8️⃣ How Mc Daid Mortgages Can Help

✅ Whole-of-market access – We work with a wide range of lenders, including those open to first-time landlords and complex income situations.
✅ Trusted local expertise – Based right here in the north of Ireland, we understand local markets and property trends.
✅ Transparent service – We’ll explain all costs clearly and handle the paperwork from start to finish.
✅ Ongoing support – We don’t disappear after completion. We’ll review your mortgage regularly to make sure you’re always on the best possible deal.

9️⃣ Final Thoughts

The property market may shift, but the fundamentals of good investment remain: research, careful planning, and expert guidance.

If you’ve been thinking about becoming a landlord or expanding your existing portfolio, now is a great time to start exploring your options.

At Mc Daid Mortgages, we’re here to help you every step of the way — offering straightforward advice, local knowledge, and friendly support from advisers who genuinely care about your success.

📞 Call us: 07968155176
📍 Visit us: 40, Coneyville, Derry, BT48 8FW
📧 Email: pat@mcdaidmortgages.co.uk
🌐 Website: www.mcdaidmortgages.com

Your home may be repossessed if you do not keep up repayments on your mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
As with all financial products, terms and conditions apply.