Buy-to-Let Mortgages for Croydon Landlords
What Croydon landlords should check before buying or refinancing: property types, flats and building information, licensing, deposits and rental assessments.
Croydon offers landlords a wide range of property, from flats near East Croydon station to period terraces in Thornton Heath and South Norwood and larger houses suitable for sharers. Each type is viewed differently by buy-to-let lenders. This guide explains the points that most often affect a Croydon buy-to-let mortgage.
Match the property to the lender
Lenders have different appetites for different property types. Points to check include:
New-build flats: some lenders apply lower maximum loan-to-value limits.
Flats in larger blocks: lenders may ask for building safety information, and some restrict lending above a certain floor or on ex-local authority blocks.
Flats above shops: common on Croydon’s high streets, but not accepted by every lender.
Houses in multiple occupation: usually need a specialist HMO mortgage. See our HMO mortgage guide.
Rental assessment
Most lenders require the expected rent to cover the mortgage interest by a set margin at a stressed rate. Ask a local letting agent for a realistic rental figure, because the lender’s valuer will also give an opinion of the rent. Our guide to rental stress tests includes a worked example.
Deposit and buying costs
Most buy-to-let lenders require a deposit of at least 25%, although some products are available at 80% loan-to-value. In England, buying an additional residential property attracts a 5% stamp duty surcharge. Budget for legal fees, licensing, safety certificates and any refurbishment as well.
Leasehold flats: check the lease
For leasehold flats, check the remaining lease length, ground rent, service charges and any restrictions on letting in the lease. Lenders will want to see these, and service charges reduce your rental profit. Our leasehold checklist covers the questions to ask.
Licensing and lettings rules
Larger HMOs need a mandatory licence across England, and councils can introduce additional or selective licensing schemes. Check Croydon Council’s current requirements before you buy. The main provisions of the Renters’ Rights Act took effect on 1 May 2026, changing how tenancies work. Keep your licences, tenancy documents and safety certificates organised, as lenders may ask for them.
Personal name or limited company?
Many Croydon landlords now buy through a limited company. The right choice depends on your tax position and long-term plans. Read limited company or personal name buy-to-let, and take tax advice from an accountant. If you own several properties, see portfolio landlord mortgages.
Talk to a local broker
We advise Croydon landlords from first purchases to portfolios. Find out more about our buy-to-let mortgage advice and our mortgage broker service in Croydon.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. We do not provide tax advice, and the Financial Conduct Authority does not regulate tax advice.
General information, not a personal recommendation. Lender criteria, rates and availability can change. Your home may be repossessed if you do not keep up repayments on your mortgage. PMS Mortgages will explain any broker fee before you proceed.
Frequently asked questions
Larger houses in multiple occupation need a mandatory licence across England, and councils can also introduce additional or selective licensing schemes. Check Croydon Council’s current requirements before you buy, as lenders may ask about licensing.
Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. Some, such as consumer buy-to-let mortgages, have their own rules. We will explain which applies to you.
Thinking about your own mortgage?
Speak to an adviser about what this means for your situation. There is no charge for an initial conversation.