Buy to Let Mortgages in Tower Hamlets
Most mainstream lenders will work, but the stress test still decides it. Whole-of-market buy to let advice for Tower Hamlets landlords — personal name, limited company, portfolio and HMO lending.
4.0%
Average gross yield
£650k
Typical entry price
90+
Lenders compared
What type of mortgage do you need?
Select the option that best describes your property financing requirement. Our brokers specialise in complex London and international structures.
"Our goal is to understand your unique situation. Select a category and we'll match you with the right product and lender."
— Roger Cooper, Senior Mortgage Adviser
What actually decides a Tower Hamlets buy to let application
Yields here usually clear the interest cover ratio on a 75% loan, though not always at higher-rate tax. The deciding factors tend to be the product’s stress rate and whether you hold personally or through a limited company.
How we approach it
- →Comparing the 125% basic-rate and 145% higher-rate cover tests against your actual position
- →Five-year fixes, where the lower stress rate can materially increase borrowing
- →Whether a limited company structure improves both the tax position and the cover test
- →Product fees weighed against rate — a fee-free product is not automatically cheaper
Tower Hamlets's housing market in 2026
The average property in Tower Hamlets sold for £554,410 over the past year, down 9% on the year before and 13% below the borough's 2021 peak of £638,375, one of the larger corrections among inner-London boroughs. Flats dominated sales at £515,787 on average, with terraced houses around Bethnal Green and Whitechapel averaging £871,266 and semi-detached homes at £813,000.
Canary Wharf's large apartment stock means many Tower Hamlets mortgages are leasehold flat purchases, worth bearing in mind when sizing life cover. Service charges and ground rent on top of the mortgage are a real ongoing cost a policy should account for if the worst happens.
Source: Source: HM Land Registry price-paid data, via Rightmove House Prices, period to 31 March 2026 (last updated 15 May 2026).
Landlord areas we cover in Tower Hamlets
What our clients say
I have used Mortgage International a few times and they have always been very helpful, professional and reasonable. I would highly recommend and will always use them and recommend everyone does too.
Roger has been great to work with over the last few years, I got my first mortgage with him and have used him for our remortgages since. He was always quick to respond and explained everything clearly.
Roger assisted me in purchasing my first home during lockdown. He was helpful and provided great guidance during this process, especially as a first time buyer. I have since used him to remortgage too. Would recommend his services.
Buy to let in Tower Hamlets: common questions
What rental yield can I expect in Tower Hamlets?
Average gross yield across Tower Hamlets is around 4.0%, with entry prices from about £650k. Yields vary meaningfully within the borough — Canary Wharf and Bethnal Green will not price the same way. Gross yield ignores voids, management, maintenance and finance costs, so treat it as a starting comparison rather than a return.
How much deposit do I need for a buy to let in Tower Hamlets?
Most buy to let lenders want at least 25%. On Tower Hamlets's £650k entry price that is roughly £162,500, plus stamp duty at the higher additional-property rates and purchase costs. Some lenders go to 80% loan-to-value, though rates are higher and the rental cover test becomes harder to satisfy.
Should I buy through a limited company in Tower Hamlets?
It depends on your tax position rather than the borough. Higher-rate taxpayers often find a limited company more efficient, because mortgage interest is a deductible business expense rather than attracting the restricted relief that applies to personally-held property. Company products usually carry higher rates and fees, so the comparison has to be run on your actual numbers. We are not tax advisers — we will model the mortgage side and recommend you take accountancy advice on the rest.
Will the rent cover the mortgage in Tower Hamlets?
Yields here usually clear the interest cover ratio on a 75% loan, though not always at higher-rate tax. The deciding factors tend to be the product’s stress rate and whether you hold personally or through a limited company.
Related services
Buy to let in nearby boroughs
Buy to let advice for Tower Hamlets landlords
Whole of market, FCA regulated, no upfront fees. We will tell you honestly whether the numbers work before you commit to anything.
Get a free initial consultation →Your property may be repossessed if you do not keep up repayments on your mortgage. Most buy to let mortgages are not regulated by the Financial Conduct Authority. The figures on this page are local averages shown for comparison and are not a quotation, projection or recommendation.