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At what LTV/with what deposit can I get a buy to let mortgage?

You can borrow up to 85% loan to value on a buy to let mortgage, which means you would need a deposit of at least 15% of the value of the property.

If you don’t have that amount in cash, you could go for a lower value property (which could still achieve a good profit), you could raise a deposit from equity in other property you own, or you could invest with someone who could contribute to the deposit with you.

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 compare today’s low deposit buy to let mortgage rates click through to our buy to let mortgage calculator.

Eligibility for a buy to let mortgage

  • First time buyers to experienced landlords
  • You must be over 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?

    Request a call-back from our expert advisors

Understanding buy to let deposits and loan to values

Loan to Value, known as LTV, describes how much you want to borrow, expressed as a percentage of the value of a property, and, as a result, shows how much your deposit funds or equity must be.

For example, if a property is valued at £100,000 and you have £20,000 to put down as a deposit, you will require a mortgage of £80,000, which gives a loan to value of 80%.

Lenders will offer their products at different LTVs, requiring different deposit amounts. Products commonly range from 50% to 80% LTV (wondering if you can borrow more than 80% LTV? See our 85% loan to value buy to let mortgage page).

You can always put in more than the required deposit, which could get you a lower mortgage rate. The LTVs are there to give the maximum percentage of the property value the lender is prepared to lend.

Our specialist advisors are always happy to talk over anything BTL deposit or LTV related and answer any questions you might have. When you are ready to discuss, do not hesitate to contact us!

We can help you work out how much you can borrow with a cash deposit, or how you may be able to raise funds by borrowing against other property you own.

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...

  • The minimum buy to let mortgage deposit is 15%
  • 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
  • Unlimited portfolio sizes
  • Houses of Multiple Occupation (HMO) with no maximum bedrooms
  • Multi-unit blocks with no maximum bedrooms
  • Special Purpose Vehicle (SPV) buy to let accepted
  • Trading limited company buy to let accepted
  • First time buyers and first time landlords accepted
  • Repayment or interest-only mortgage payment options
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"High loan to value buy to lets can still be competitive on rate"

Helping clients get the most competitive interest rate possible, requires us to carefully examine all the possible options and think creatively, as we did for this client. Billy McCluskey, high loan to value borrowing specialist.

Read more
Billy Mccluskey

Costs involved in a 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 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.

What our clients say about us

Frequently asked questions

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The loan to value ratio reflects the level of risk a lender associates with lending their money.

If the LTV is lower, the lender won’t have to provide as much money towards the cost of a property, which reduces the level of his they will take on. The risk is also reflected in the rates associated with the mortgage. Mortgage rates are generally lower when the LTV is low.

This means that it is important to discuss every option with your mortgage advisor. If you can provide slightly more of a deposit or top up your equity to a slightly higher LTV, the amount of buy to let mortgage products that you have access to may be larger. The rates may also be lower, meaning your monthly payments could be lower too.

To learn more about buy to let mortgage rates, visit our buy to let mortgage rates calculator page.

The maximum LTV on a standard buy to let mortgage is currently 85%.

This is not a constant though, as sometimes lenders change their product offerings. It is also important to remember that, if you don’t have 15% of the property value in cash, you may be able to raise it from equity in other property you own.

When the Bank of England Base Rate rose, 85% LTV buy to let mortgages, which had previously been available, were withdrawn from the market. This had also happened during the Covid-19 pandemic, but they had subsequently come back into the marketplace. They currently remain unavailable.

If you are looking for a specialist buy to let product, e.g. an HMO mortgage, MUB mortgage, or limited company buy to let mortgage, the maximum LTV may differ.

There are no ‘good’ or ‘bad’ LTV rates. The LTVs that you have access to will depend on your circumstances, the value of your property and the amount of deposit or equity you have available.

On the whole, lower LTV rates offer more benefits to the borrower and less risk to the lender. This is because the lender doesn’t have to invest as much of their own money into the property, reducing the risk to them.

As a borrower, putting down a larger deposit means you are more likely to be able to access lower interest rates with lower monthly payments.

The minimum deposit for a buy to let mortgage is currently 15%.

Products that require a 25%-30% deposit or equity in the property are more common, as it is more beneficial for both parties. The lender has less risk and the landlord will have access to lower interest rates.

Wider criteria, relating to the security property, the rental income, and you as a borrower will influence the deposit amount.

Yes, low deposit buy to let mortgages currently require you to put down just 15% of the property value.

Some landlords may only be able to or want to put down the minimum deposit for a property for various reasons. These may be circumstantial or strategic.

The more you can put down as a deposit, the cheaper your mortgage could be in the long term. This is because high LTV products typically have higher mortgage interest rates.

No, the deposit you need for a buy to let property can be as little as 15%, or any greater amount.

The amount of deposit that you put down against the mortgage will change the products that you have access to. With a 25% deposit, the number of products begins to widen considerably in comparison to those products available with a 15% deposit. At 40-50% deposit, or more, you will usually find that the whole market is available to you. Lenders generally do not reduce their rates any further once you get to 50-60% loan to value.

The amount you can borrow for a buy to let mortgage will generally depend on the rental income your security property can achieve.

Your personal income may also be a factor. Each buy to let mortgage lender will have specific criteria that will need to be met, in order to allow you to access a particular product.