2 November 2026 | Written by Shideh Mirashrafi
How to improve your chances of getting a buy-to-let mortgage or bridging loan
Whether you’re buying a rental property, raising funds against one you already own or arranging short-term finance for a purchase, preparing the right information can help a lender assess your application.
For property finance, that means explaining more than your credit history. The property, rental income, existing mortgages, loan purpose and repayment plan all help build the picture.
At Mercantile Trust, we don’t see the credit score you see in an app, and we don’t base our decision on a number. We review your whole credit profile and take time to understand the story behind it, including what happened and where you are now.
Here’s how to prepare for an application for our buy-to-let mortgages, bridging loans or Homeowner Business Loans.
1. Explain what you need the funding for
Start with how much you want to borrow, what you’ll use it for and when you need it.
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Finance you’re considering |
Information to discuss with us |
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Whether you’re buying, refinancing or raising funds against a rental property; its rental income; and whether you need a first or second charge. |
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Why short-term funding is needed, the completion deadline, any planned works and how you’ll repay the loan at the end of the term. |
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The business purpose, how the funds will be used and how you’ll repay the borrowing. These loans are secured by a second charge on your main residence, and the majority of the loan must be for business purposes, with evidence required. |
If you want a second charge loan, have your existing mortgage balance and lender details ready. We’ll need to understand the borrowing already secured against the property.
Tell us about planned works early. Our products can consider light refurbishment, but do not cover heavy refurbishment or development. [14, 15]
2. Check the basic eligibility requirements
To be eligible for a loan with Mercantile Trust, you must be a British citizen or have indefinite leave to remain, and you must have three years’ residence history in the UK.
Our applicant criteria also include:
- A minimum age of 18, with a maximum age of 85 at the end of the loan term.
- Identity verification through Nivo in our app and evidence of your UK residence history.
- Generally, six months’ mortgage history. Discuss first-time buyer/landlord applications and any exceptions with us.
- A minimum income of £22,500 and maximum loan-to-value (LTV) of 65% for first-time buyers/landlords.
- Up to four directors for limited company applications.
Our buy-to-let products are for unregulated lending; consumer buy-to-let applications are not accepted under these guides. Explain any personal or family use of the property and who will live there, so we can check the case fits.
3. Prepare the property and mortgage details
The property helps determine how much we can consider lending. Have the address, estimated value, purchase price where relevant and any outstanding secured borrowing ready.
Our criteria specify a minimum property value of £75,000, with lending available up to 75% LTV, subject to the product, credit status and property restrictions. Lower limits apply to some properties and applicants.
For example, raising funds through a second charge mortgage requires us to consider the existing mortgage alongside the proposed borrowing.
Tell us if the security is an HMO, multi-unit freehold block, holiday let, student let or a property with unusual construction. These cases may need different documents or an individual discussion. For an HMO, have the licence or licence application available where required.
Accurate property details help us establish the valuation requirements. An automated valuation may be available in some cases, but it isn’t suitable for every property or loan.
Properties with unusual construction or missing facilities may require additional consideration. Read our guide to getting a mortgage on a complex property.
4. Show the rental income for a buy-to-let application
For a buy-to-let mortgage, prepare valid tenancy agreements and your latest bank statement showing rent received.
Our buy-to-let term-loan affordability assessment requires a debt service coverage ratio (DSCR) of 125%, with a 1% stress rate included in the calculator. We can review the figures with you.
For standard buy-to-let properties, we generally use the lowest rent shown by the tenancy agreement, valuation or automated valuation. Cases supported by market evidence can be referred for review. Different rental-assessment rules apply to HMOs, multi-unit freehold blocks and student lets.
Surplus income from other buy-to-let properties and external income, including self-employed, pension or benefit income, can be considered. There is no general minimum or maximum income level, except for the first-time buyer/landlord requirements.
What if the property is vacant?
Tell us whether you’re buying an untenanted property, carrying out light refurbishment or refinancing between tenancies.
For untenanted property purchases or first charge light refurbishment, our guides require evidence that three months’ rental payments can be covered. Discuss the circumstances with us so we can confirm the relevant requirements.
5. Have a clear repayment plan for bridging finance
A bridging loan is short-term borrowing. Before applying, explain how you intend to repay it at the end of the term. This is your exit strategy, and we require supporting evidence.
If your exit is a sale, explain which property will be sold, the expected timing and any work needed beforehand. If it is refinancing, explain the proposed longer-term borrowing and what needs to happen before that application can proceed.
Also tell us whether you expect to pay the interest during the term or need it rolled into the loan. For serviced bridging loans, our criteria specify a DSCR of 125%, with a 1% stress rate in the affordability calculator.
A clear deadline is helpful, particularly for auction purchases or time-sensitive transactions. Let us know about any issues that could affect completion or repayment at the outset.
6. Check your credit reports and explain any issues
Review the information held by Experian, Equifax and TransUnion UK before applying. These agencies can hold different information. Free statutory reports are available;
Look for incorrect addresses, accounts you don’t recognise, inaccurate missed payments or settled balances that haven’t been updated. Raise errors with the agency and the organisation that supplied the information.
You don’t need a perfect credit history for us to consider your application. Tell us about defaults, County Court Judgments (CCJs), missed payments or previous insolvency, including dates, amounts, settlement status and what has changed.
Under our guides’ adverse-credit status assessment, certain older or smaller entries are disregarded. Examples include defaults and CCJs over 12 months old, amounts below £300, and satisfied amounts below £3,000. Mortgage and secured-loan arrears have separate rules.
These assessment rules don’t remove entries from your file or guarantee approval. Please disclose the information requested so we can understand the whole profile.
7. Keep your identity records and banking history in order
Make sure your name, address and date of birth are accurate across your identification, bank accounts, credit agreements and bills. Explain genuine differences, such as a previous surname, and have supporting evidence ready.
If you’re eligible, registering on the electoral roll at your current address can help lenders verify your details. Some non-British citizens can register. If you’re not eligible, you can ask each credit reference agency about adding a Notice of Correction explaining why. A notice doesn’t increase your score and can make an application take longer to review.
Keep recent bank statements and accepted proof of address available. Council tax and utility bills may help provide address evidence, depending on our document requirements.
Pay existing commitments on time and stay within agreed credit limits. Occasional use of an arranged overdraft doesn’t automatically damage your score, but exceeding limits or having payments refused can cause problems.
If you rent your own home while owning or buying an investment property, services such as Canopy, CreditLadder or the Rental Exchange may help record your own rent payments. Check their charges and agency coverage. This does not replace evidence of rent received from your tenants for a buy-to-let application.
Review your credit files periodically and before applying, allowing time for corrections. Avoid several applications involving hard credit searches in quick succession. Checking your own report won’t affect your score.
Speak to us before submitting your application
An early conversation can help establish whether your requirements fit our buy-to-let, bridging or Homeowner Business Loan criteria and which documents you’ll need.
Making an enquiry with Mercantile Trust won’t affect your credit score. We only carry out a credit check after receiving your express permission. When you authorise an initial credit check for buy-to-let or bridging finance, we use a soft search, which won’t affect your credit score. There’s no obligation to proceed.
A person reviews your application individually, considering your credit profile, circumstances, the property and how you plan to repay the loan. Approval remains subject to our lending criteria and assessment.
Call 0800 032 3737 to discuss your requirements.
This article is for general information and does not constitute financial or legal advice.
Our loan products are not regulated by the Financial Conduct Authority.
Subject to status and lending criteria.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
Reviewed by: Tara Evans, Chief Executive
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