Buy to Let Mortgage Ireland

A buy-to-let (BTL) mortgage is a loan for a property you intend to rent out rather than live in. Because it's an investment rather than your home, lenders treat it as higher risk and price and assess it differently — larger deposit, higher rate, and an emphasis on whether the rent will cover the repayments.

This guide covers residential buy-to-let — a house or apartment let to tenants. Commercial property and short-term holiday lets follow different rules again.

The Central Bank of Ireland caps buy-to-let lending at 70% loan-to-value (LTV). In practice that means you need a deposit of at least 30% of the purchase price.

• On a €300,000 property, that’s a €90,000 deposit and a €210,000 mortgage.
• A bigger deposit widens your choice of lender and usually improves the rate.
• The 4× / 3.5× income limits that apply to a home loan don’t drive a BTL decision in the same way — rental coverage does most of the work (see below).

Two things matter most:

• Rental coverage. Lenders stress-test that the expected rent comfortably exceeds the mortgage repayment — typically by a margin of around 125% or more — so the property still washes its face if rates rise or it sits empty for a spell.
• Your wider position. Your own income, existing borrowings and track record still count. Many lenders expect you to already own your own home, and some look for evidence of landlord or financial experience.

You’ll also need to factor in the running costs of being a landlord — RTB registration, insurance, maintenance, periods between tenancies, and management fees if you use an agent.

Buy-to-let rates are generally higher than the equivalent owner-occupier rate, and many BTL products offer an interest-only option for a period. Interest-only keeps the monthly cost down but doesn’t repay any capital — fine as a deliberate strategy, risky as a default choice.

Rental profit — rent received less allowable expenses — is taxable. You declare it through self-assessment (Form 11) and pay income tax, USC and PRSI at your marginal rates.

• Mortgage interest on a residential letting is fully deductible against rental income — but only if the tenancy is registered with the RTB.
• Other allowable costs include insurance, maintenance, letting-agent fees, accountancy and certain furnishings (capital allowances).
• The capital portion of your repayment is not deductible — only the interest is.

Tax treatment is individual; this is general information, not tax advice. An accountant is well worth it on a buy-to-let.

Buy-to-let can be a sound long-term investment, but it’s a business decision as much as a property one: bigger deposit, higher rate, real running costs and a tax return each year. The numbers need to work with a margin to spare, not just on a good month.

We can run your figures across the lenders active in buy-to-let, sense-check the rental coverage, and tell you honestly whether the case stacks up before you commit.

Try our buy-to-let calculator →