Buy-to-Let Mortgages in Northern Ireland

With strong rental yields and affordable property prices on offer, Northern Ireland is an attractive location for property investment, but how difficult is it to get a buy-to-let mortgage there? Read on to find out all you need to know.

Can you get a buy-to-let mortgage in Northern Ireland?

Yes. Buy-to-let mortgages are available in most parts of Northern Ireland but they can be more difficult to obtain than in other parts of the UK, namely England and Wales. There are fewer lenders operating there, especially in rural or the more remote parts of the country.

Despite investment mortgages sometimes being more difficult to come by, Northern Ireland can be an attractive place for landlords to invest, due to the healthy rental yields on offer.

According to 2024 data from Zoopla, the average gross rental yield in the country is 6.11% - only five other regions in the UK had a better yield than this. Property prices are also relatively affordable, with the average cost of a buy-to-let property being £144,423.

How much could you borrow?

Affordability for Northern Irish buy-to-let mortgages is calculated in the same way as it would be anywhere else in the UK. Whether you are approved for a mortgage of a specific amount will depend on the projected rental income, specifically the monthly rent payments the property can generate must be between 125% and 145% of the mortgage repayments.

You can work out how much your mortgage repayments will be using the calculator below. This tool gives you the option to display the results based on the interest-only repayment type, which is most commonly chosen by landlords seeking to make a profit.

If your projected rental income (monthly) is 125-145% greater than the results this calculator returns, you will stand a good chance of passing the affordability assessments.

Eligibility criteria

There are some specific eligibility requirements you will need to meet to get approved for a buy-to-let mortgage in Northern Ireland, but most of the criteria are no different to the rest of the UK. Below you will find a summary of the eligibility criteria that lenders typically use:

• Deposit requirements: You will need at least 20-25% of the property’s value to put down as a deposit to get approved for a buy-to-let mortgage anywhere in the UK.
• Geographic restrictions: Your choice of lenders and deals will be restricted if the property you are buying is in one of Northern Ireland’s remote or rural areas. Lenders consider these higher risks due to the lower demand from renters.
• Landlord experience: Some lenders prefer borrowers with landlord experience, but there are options for first-time landlords. If you have never owned a buy-to-let property before, your chances of approval will be stronger if you have owned your own home for six months and have personal income of at least £25k.
• Property type: Properties with non-standard construction - such as thatched roofs, concrete exteriors, steel framework and other less common building materials - are prevalent in certain areas of Northern Ireland. If you are seeking a buy-to-let mortgage on a property with these features, a specialist lender might be called for.
• Credit history: Clean credit is not essential but you will likely have more lenders and deals to choose from if there is no recent or severe adverse credit on your files.

Compare buy-to-let mortgage rates in Northern Ireland

Buy-to-let mortgage interest rates in Northern Ireland are no different than they are in the rest of the UK. Generally speaking, you can expect a rate that is roughly half a percentage point to one full percentage point higher than an equivalent residential mortgage deal.

The exact rate lenders will offer you will depend on the loan-to-value (LTV) ratio (i.e. the amount of deposit you have) and the overall strength of your application.

You can compare buy-to-let mortgage rates in Northern Ireland for free on Teito, choose the one you want and apply for an agreement in principle in minutes

Need professional advice? We can provide that too!

We’ll find one for you! When you source a buy-to-let mortgage through us, you will have the option of a free, no-obligation chat with a broker who specialises in this area. 

Using a Northern Irish mortgage advisor is not essential, as our brokers can arrange mortgages from anywhere over the phone, web and video calling. If, however, your preference is to use a broker based in Ireland, this is something we can accommodate.

We have buy-to-let mortgage advisors based there. They have knowledge of the local market and are available for face-to-face appointments where necessary.

Choose your preferred option below to get started:

Compare Buy-to-Let Mortgage Rates in NI

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Available mortgage lenders

At the time of writing (November 2024), there are around 13 mortgage lenders available for buy-to-let mortgages in Northern Ireland. Some mainstream lenders, such as TSB, and leading specialist lenders like Accord Mortgages and Aldermore, do not lend there.

Mortgage providers including Barclays, Natwest, HSBC, Kensington, Santander and the Bank of Ireland will offer investment mortgages there with no specific caveats.

Other lenders, however, may have location-based restrictions, such as:

• Leeds Building Society: Won’t lend on houses of multiple occupancy (HMO) or offer limited company buy-to-let mortgages in Northern Ireland.
• Quantum Mortgages: Will only consider lending if the applicant has owned at least two buy-to-let properties for a minimum period of 12 months.

Landlord registration and licensing requirements

To let out property in Northern Ireland you will need to register as a private landlord through the Landlord Registration Scheme. This costs £70 and must be renewed every three years.

Specific licensing and registration is needed for certain property types. For instance, if you are setting up a holiday let, you will need to apply for a certificate from Tourism NI, while landlords who are letting on an HMO will need a licence from the local authority.

How much stamp duty you will pay

The stamp duty rates for buy-to-let properties in Northern Ireland are shown in the table below. On top of these charges, you will also have to pay an additional 3% surcharge.

Can you get a limited company mortgage in Northern Ireland?

Yes, but with fewer lenders to choose from. Some mortgage providers explicitly state that they will not offer a buy-to-let mortgage in Northern Ireland if the borrower is set up as a limited company. If you meet the criteria at the willing lenders, there are tax advantages to setting up a mortgage through a limited company - read more about this in our guide.

Why choose Teito for your buy-to-let mortgage needs?

You can browse the latest buy-to-let mortgage rates and deals in Northern Ireland for free on Teito, and access advice from a broker who specialises in this area.

Here are just some of the reasons why landlords choose our service:

• It takes seconds to access rates and deals
• Our brokers can offer bespoke advice and exclusive deals
• We are 5-star rated on leading review websites
• You could secure an agreement in principle in minutes

Ready to compare rates and take advantage of a free, no-obligation chat with a broker who specialises in the Northern Irish buy-to-let market? Get started here.