Using low deposit buy-to-let mortgages
Percentage deposit required for a buy-to-let mortgage by property value
|Property Value||15% deposit||20% deposit||25% deposit|
Important points to remember about a buy-to-let mortgage deposit:
- 15% is the lowest current deposit size for a buy-to-let mortgage
- When you have 40% deposit or more this normally means access to best available rates
- Your buy-to-let deposit cannot come from an unsecured loan
|Rate||Product||Monthly cost||LTV||Lender fee||APRC|
|4.39% then 6.33% Variable for 24 months||Variable for 24 months||£365||85%||£3,110||6.50%||Enquire|
|4.59% then 6.33% Fixed for 24 months||Fixed for 24 months||£382||85%||£3,110||6.50%||Enquire|
|4.74% then 6.33% Variable for 24 months||Variable for 24 months||£395||85%||£2,880||6.50%||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.
*Some lenders offer mortgages with no fees; however, our broker fee of up to £1,198 for Buy to Let first mortgages and up to £2,198 for Buy to Let secured loans will apply.
This table includes both Purchase and Remortgage rates. Speak to our advisors for a personalised recommendation.
We can secure a great rate on a low deposit buy-to-let mortgage for first time and experienced landlords of as much as 85% loan to value, meaning you only have to raise a 15% deposit.
Whilst the range of products available grows with the amount you can raise for your deposit, it is still possible to make a favourable investment in rental property with a low deposit.
Why use us as your buy-to-let mortgage broker?
- We have years of direct buy-to-let experience
- No ties to lenders, we search the market
- Excellent product knowledge
- We are courteous, helpful & efficient
- Decision in principle often within two hours
- 85% loan to value products available
Our team of buy to let consultants have been recruited for their years of experience within the rental industry, many are landlords themselves. We offer excellent product knowledge from a wide range of lenders - we are not tied to any one lender; which means we are working in your best interests to find a suitable product which matches your requirements.
Lastly, our team are courteous, helpful and efficient. We work with customers with the desire to build long-lasting business relationships built on trust.
Understanding LTV on low deposit BTL mortgages
Whilst looking for a low deposit BTL mortgage you may have come across the term ‘high loan to value’.
Loan to value (LTV) is simply the portion of the property value for which you require the mortgage. For example, if you are able to raise only 15% of the property value to put down as a deposit (the minimum you’d need for a low deposit mortgage) then you would need an 85% LTV mortgage.
To help you our mortgage search facility allows you to specify that you’re looking for a high LTV mortgage.
Benefits of a low deposit mortgage
A low deposit mortgage is likely to be beneficial to you if your circumstances fall into the following categories:
- Buying your first rental property and cannot raise a lot of capital
- Expanding your portfolio and taking a small amount of equity from one property to invest in buying the next.
- Spread risk across multiple properties by splitting capital into multiple low deposits.
- Remortgaging to a higher LTV to free up cash
Drawbacks of a low deposit mortgage
- A low deposit means you are less protected against falling into negative equity if your property loses value
- Fewer lenders offer low deposit buy to let mortgages
Limited funds to invest?
Whilst you may be thinking about a low deposit, there are other ways to minimise your capital outlay. A number of buy to let mortgage products come without lender fees. Some lenders offer free valuations. Also, as long as you don’t exceed any maximum LTV terms stipulated by the lender many will allow you to add survey, conveyancing and other fees to the loan value.
Our team of consultants will discuss your options with you to help you decide on the strategy you want to take. Get in touch via our freephone number or submit your details on our quote form at the top of this page.
Your property may be repossessed if you do not keep up repayments on your mortgage
The FCA do not regulate some forms of buy to let mortgages