80 LTV buy to let mortgages
This table shows the top 80% LTV buy to let mortgages we have available today.
If you have a 20% deposit and are ready to invest in buy to let then one of these mortgages may be the ideal product to enable you to do so.
To enquire about any of these products, simply click the yellow button, or give us a call on one of the numbers displayed at the top of this page.
Plus you can get remortgage deals for 80% LTV.
Review the latest 80% LTV mortgage interest rates for buy-to-let in the table below
|Rate||Product||Monthly cost||LTV||Lender fee||APR|
|2.89% then 4.94% Variable for 24 months||Variable for 24 months||£240||80%||£295||4.80%||Enquire|
|3.15% then 5.10% Fixed for 28 months||Fixed for 28 months||£262||80%||£1,175||5.00%||Enquire|
|3.19% then 4.84% Fixed for 24 months||Fixed for 24 months||£265||80%||£1,825||4.90%||Enquire|
|3.24% then 4.84% Variable for 24 months||Variable for 24 months||£270||80%||£1,825||4.90%||Enquire|
|3.49% then 4.84% Fixed for 36 months||Fixed for 36 months||£290||80%||£1,825||4.80%||Enquire|
|3.69% then 5.10% Fixed for 28 months||Fixed for 28 months||£307||80%||£175||5.00%||Enquire|
|3.69% then 4.84% Variable for 60 months||Variable for 60 months||£307||80%||£1,825||4.70%||Enquire|
|3.69% then 5.30% Fixed for 24 months||Fixed for 24 months||£307||80%||£1,968||5.40%||Enquire|
|3.74% then 4.84% Fixed for 60 months||Fixed for 60 months||£311||80%||£1,825||4.70%||Enquire|
|3.75% then 5.10% Fixed for 40 months||Fixed for 40 months||£312||80%||£175||4.90%||Enquire|
Important: Lender fee is calculated based on a loan amount of £100,000.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
Where lenders offer mortgages with no fees, our broker fee will apply. Details at foot of this page.
Table contains purchase and remortgage rates. Speak to us for a tailored recommendation.
20% deposit buy to let mortgages
With an 80% LTV, these buy to let mortgages require that you put down a deposit of at least 20% of the property value. This gives you 20% equity in the property from day one, which is a good ‘buffer’ if market conditions change and the property loses value. The more equity you have in a property the more resilient your investment will be if property prices go down.
How to use 80% ltv buy to let mortgages to build your portfolio
If you plan on increasing the size of your property portfolio then 80% LTV buy to let mortgages are likely to enable you to do so with fewer risks than mortgages with a higher LTV ratio. This is because the higher the LTV ratio is, the higher the risk is for both you and your lender. The more equity you have, generally speaking, the safer your investment is.
Mitigate the risks of voids with a property portfolio
However, this is not the only risk that landlords are exposed to – when a property is empty (called a ‘void’ period) then the landlord cannot collect rent, so the monthly mortgage payments must come out of his or her own pocket.
Understanding rental cover and income is key to 80% LTV mortgages
Most mortgage lenders require the rent to cover at least 125% of the monthly mortgage repayments to allow for two months’ worth of voids per year, which mitigates this risk somewhat, but not entirely.
Additionally, even with the best referencing in the world, any landlord can get stuck with a ‘bad egg’ that doesn’t pay the rent. So, to minimise the risks of getting a non-payer or being lumbered with extended void periods, some landlords prefer to spread these risks by purchasing several properties with high LTV ratios.
80% LTV buy to let mortgages are a good tool to do this. With a relatively good ‘safety net’ of 20%, you’re less likely to fall into negative equity (during the last recession house prices fell by an average of around 15%1), and by putting down smaller deposits on more properties, the risk of void periods is reduced.
Make a profit with a property portfolio
Another way of looking at this is to consider that it is extremely unlikely that a single (expensive) property can achieve the same rental yield as two (smaller and less expensive) properties combined would. So, by spreading your risks your rental yield is likely to be higher, meaning more profit for you.
Weigh up your options and look at all the angles
You should bear in mind though that the more properties you own, the more demanding your role as landlord is likely to be. If you don’t have the time or inclination to manage your property portfolio (whether you choose to use a letting agent or not, the time and energy required to be a successful landlord is not insignificant) then perhaps you would be better off with just one property after all? The decision to expand your property portfolio can only come from you, and whilst the returns mean it is definitely worth considering, ultimately you have to make the right choice for your lifestyle, family and work commitments and other personal circumstances.
You must also consider that the more debt you take on, the more likely you are of defaulting on it. Some buy to let lenders will restrict the number of mortgaged properties you can own at any one time for precisely this reason. Do not take on debt lightly, and always weigh up your options before you do so.
Why choose Commercial Trust?
Commercial Trust is a mortgage broker which specialises in sourcing suitable and affordable buy to let mortgages for landlords. Our team of consultants has a lot of direct experience in the industry as many of them are landlords as well.
We build relationships with our customers
We want to build up a lasting relationship with you and consequently aim to offer the best customer experience we can. Our reviews on the independent review site, Trust Pilot shows how dedicated the team is! The majority of reviewers have given us a 5-star rating. Let us give you our 5-star service - give us a call on one of the numbers at the top of this page, or fill in our quote form.