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Can I get an 85% LTV buy to let mortgage?

Yes, at present you can borrow up to 85% of the value of a property on a buy to let mortgage. This means you can put down just 15% of the value as a deposit.

What’s more, if you don’t have 15%, but do own other property, you may be able to raise the deposit from any available equity in the other property you own.

Factors that may impact you getting a buy to let mortgage

  • Some types of poor credit
  • The value of the property being less than you expected

If you have questions, chat to our advisors on live chat, via the phone, or get a call-back we're here to help.

Today's buy to let mortgage rates

To check today’s 85% LTV buy to let mortgage rates, insert the values for the borrowing you need into our buy to let mortgage calculator.

Eligibility for a high LTV buy to let mortgage

  • First time buyers to experienced landlords
  • You must be at least 18 years old
  • Minimum deposit 15% of the property value
  • Upper age limits at application are flexible
  • Low personal incomes are accepted
  • Property, pension and employment income is OK
  • Ready to get started?

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High LTV buy to let mortgages

The chances are that if you are looking for BTL mortgages of 80-85% LTV, you are either interested in splitting a pot of cash into deposits across multiple properties, to make your investment work hard; or you are looking to invest in a property with the minimum deposit necessary.

We can help you investigate either investment approach, and if you are new to buy to let, we are here to help, guide, and support you.

You do not have to be an experienced landlord to borrow at 85% loan to value (LTV). However, if you are a first time buyer, you would need to apply with someone who has owned a property (residential or rental) because you cannot currently borrow at 85% LTV as a first time buyer on your own.

Can you get an interest-only buy to let mortgage at 85% loan to value?

You can borrow at high LTV’s on an interest-only basis, the current maximum is 85% loan to value. Many landlords choose to pay buy to let mortgages on an interest-only basis, as they are not interested in owning the property at the end of the term.

As a result, typically, many buy to let mortgages have both capital repayment and interest-only options. This includes LTV deals for any buy to let mortgage from, say, 60% LTV.

What to watch out for when investing at a high LTV

When you are looking at high LTV buy to let mortgages, it is well worth comparing the difference in rates at various thresholds, especially if you have a flexible budget.

The difference between rates for a 75% LTV buy to let mortgage versus an 85% LTV buy to let mortgage can be wider than you might expect. If that means you could achieve 75% LTV and a much lower rate, this could make a marked difference to your monthly mortgage payments.

Why invest in buy to let at a high LTV?

There are a few reasons why landlords choose to invest in high LTV buy to let mortgages. These include:

  • Limited cash funds - the obvious practical reason for securing a high LTV buy to let mortgage
  • Making a cash lump sum work harder – if you have a cash lump sum of £60,000, you could use it as a deposit on one property and secure more rental income. Or, you could split the money in half and buy two buy to let properties, generating two rentals with a total that is far greater than you could achieve renting just one property. Over time, you may also benefit from any capital appreciation in the value of two properties over just one.
  • Raising capital from an existing portfolio – if you own several other properties, you could remortgage to a higher LTV to raise a deposit for another property purchase.

Are 85% LTV buy to let mortgages always available?

85% LTV buy to let deals are sometimes withdrawn from the market but they are currently available. You can be a new or experienced landlord to get one.

We have seen 85% deals come in and out of the marketplace in recent years. During the Covid-19 pandemic, 85% LTV deals were withdrawn. They came back onto the market after lockdown. Before this they had been available across a small number of lenders for some years. More recently they were again withdrawn, because turbulence in the economy meant property prices were likely to drop.

However, you can currently borrow up to 85% LTV and what is more, you may not even have to use cash savings as a deposit.

You could raise the full borrowing you need by borrowing against other property you own. It is vital to ensure that by doing so your mortgage payments remain affordable, as your properties will be at risk if you cannot keep up with them.

We work with a range of over 80 UK buy to let mortgage lenders, including:

Why choose Commercial Trust?

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Apply with ease by phone

It couldn't be easier to secure a buy to let mortgage with our expert advisors. Ask all your questions and arrange an application on the phone from your sofa.

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World class customer service

We'll find you a great deal and take all the admin work off your shoulders, so you can relax while we get your mortgage completed. All the while giving you progress updates.

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Lender decision in 2 hours

By contacting you by phone and email you can get help more quickly than in-person services. It's possible to get you a lender decision in principle in as little as two hours after our call.

We can help you with...

  • Borrow up to 85% loan to value (LTV)
  • Adding to a cash deposit with a 2nd charge or releasing equity
  • No minimum income options
  • Lenders with no upper age limits
  • Flexible affordability calculations
  • 2, 3, 5, and 10-year deal periods
  • Cashback, free valuation and other incentives available
  • Borrowing based on rental income from property
  • Switch from residential mortgage to buy to let mortgage
  • Unlimited portfolio sizes
  • Remortgage to like for like loan, or to raise capital
  • Houses of Multiple Occupation (HMO) options with no maximum number of bedrooms
  • Multi-unit blocks options with no maximum number of bedrooms
  • Special Purpose Vehicle (SPV) buy to let up accepted
  • Trading limited company buy to let accepted
  • First time buyers accepted
  • Repayment or interest-only mortgage payment options
Modern residential terraced houses with red an mauve windowed front doors

"Borrow up to 80-85% loan to value, even as a first time landlord"

High loan to value buy to let mortgage have many uses, from investing as a new landlord, to making your equity pot work as hard as possible. We can help, whatever your need. Billy McCluskey, buy to let mortgage specialist.

Read more
Billy Mccluskey

Costs involved in a high LTV buy to let mortgage

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  • Lenders may charge you for the valuation conducted on your property. They often also charge a product fee, sometimes this can be added to the mortgage.

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  • You will need a conveyancing solicitor who will charge fees. Read our guide to choosing a conveyancing solicitor.

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  • We charge a broker fee for our work. You pay in two parts. A booking fee, once we have found you a mortgage deal, at application. The majority of our fee is paid at completion of the mortgage.

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  • Every mortgage comes with monthly mortgage costs based on the mortgage interest rate the lender charges. These are paid on either an interest-only or capital repayment basis.

How to apply for a high LTV buy to let mortgage

1

Tell our advisors about the property you are investing in, your needs and circumstances. If you have credit concerns, chat to us about them, so we can put you with the right lender.

2

Your advisor will find the best possible deal from a search of thousands of products. They will get you a lender decision in principle, this requires a soft credit search (occasionally it is a hard credit search).

3

Your advisor will call to discuss the product they have found for you. You will be presented with one mortgage, that is the best match for all your needs and offers you the most cost effective option.

4

On your instruction, your advisor will submit your mortgage application. Your account manager then does all liaison and administrative work to complete the deal, whilst keeping you updated at every step.

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Frequently asked questions

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No, the absolute minimum LTV is 85%, however if you are looking for alternative ways to raise a deposit, you may be able to borrow against equity you have in another property.

For example, if your residential home is either unencumbered (you own it outright, there is no mortgage) or has equity in it (there is a mortgage, but you are not at your maximum loan to value), you could borrow against it to generate a deposit for a buy to let property.

Arranging finance in this way means you don’t need to have physical cash for a deposit, but it does mean you are borrowing against two properties. It is important to ensure you don’t overstretch yourself financially, as interest payments will need to be maintained.

Yes, you can currently get 85% LTV buy to let mortgages. What’s more, you do not need landlord experience to be considered for mortgages at this LTV.

Yes, you can get an interest-only buy to let mortgage at 85% loan to value.

Many landlords choose to pay buy to let mortgages on an interest-only basis, as they are not interested in owning the property at the end of the term.

As a result, typically, many buy to let mortgages have both capital repayment and interest-only options. This includes those at 85% LTV (and any buy to let mortgage from, say, 60% LTV – 80% LTV).

To borrow at 80% loan to value, this literally means you want to borrow 80% of the value of the property you are buying or remortgaging. You will need a 20% deposit to cover the rest of the property’s value.

The maximum LTV for a buy to let mortgage is currently 85%. You may be able to avoid using savings for a deposit, if you can borrow against other property(ies) that you can use as security.

A second charge mortgage could be used to leverage equity in another property, or you could raise funds by extending borrowing on another property or borrow against a currently unencumbered property. Ask our advisors for details.

The maximum LTV on individual buy to let mortgage products is currently 85%. To be able to cover the cost of a deposit without using cash savings, you could release equity from another property you own, either via a second charge mortgage or capital-raising remortgage.