Changes to the Family Buy to Let Mortgage product in the UK

Published 26 October 2015 · Last reviewed 1 May 2026

Buy to Let Mortgages to rent to family members rules – Information on Regulated Buy to Let Mortgages

If you want to buy a house and rent it to a family member such as your children (aged over 18 years), father, mother, brother sister, aunt and uncle then you will need to get a Regulated Buy to Let mortgage which is not very easy in the current mortgage climate.

At Niche Advice we specialise in this type of mortgage and have helped many clients invest in regulated buy to let mortgages.

Below are the key main criteria to get a regulated buy to let mortgage for one of our most popular products to give you an idea of what’s needed to get this type of mortgage.

Buy to Let Mortgage for properties rented to family members.

Minimum income of £25,000 for at least one applicant (excluding state pension and other benefits).
60% loan to value, so you will need a minimum of 40% deposit
Applicant must be an Owner Occupier (can be Mortgaged)
100% of the deposit must come from your resources (gifted deposits are unacceptable)
Standard property construction
Good level of affordability to maintain mortgage
Mortgage term up to the applicants age of 75 Years
London & M25 properties must have a value of over £300,000
No more than 10 properties within their portfolio
Rental coverage of 125% of the mortgage payment

Regulated mortgages are more complexed and to find out more information about this type of product please click on the below link:

https://www.nicheadvice.co.uk/buy-let-mortgage-rent-family-member/

If you’re thinking of letting a place to a family member it’s vital you disclose this information to the lender as not doing so may have serious consequences, ultimately as a landlord you will be held responsible, so it’s vital that you protect yourself by seeking professional advice on this subject.

For more information about Buy to let mortgage to rent to a family member please contact us on T: 020 7993 2044 or alternatively complete the online enquiry form.

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Most buy-to-let mortgages are not regulated by the Financial Conduct Authority. A small number of buy-to-let mortgages are FCA-regulated — typically Consumer Buy-to-Let (where the borrower is not acting in the course of a business, such as an accidental landlord who has inherited or moved out of a former main residence) and Family Buy-to-Let (where the property is let to an immediate family member). Limited-company buy-to-let, portfolio buy-to-let and standard personal-name buy-to-let are not regulated by the FCA.

Where the underlying mortgage is not FCA-regulated, the lender's conduct on that loan is not covered by FCA rules and you may have reduced access to the Financial Ombudsman Service for complaints about the lending decision or product terms. However, Niche Advice Limited is a Credit Broker authorised and regulated by the Financial Conduct Authority (FCA No: 750263), and our broking activity — including the introduction we make to the lender — IS FCA-regulated under the FCA's CONC rules. Complaints about our broking service can therefore be referred to the Financial Ombudsman Service in the usual way.