Can you get an 80% LTV buy-to-let mortgage?
Yes. Lenders on our panel lend up to 80% loan to value on buy-to-let, so you need a 20% deposit, and selected products go to 85%. That applies to more than a standard house or flat:
| Property or borrower | Up to | Deposit |
|---|---|---|
| Single buy-to-let (house or flat) | 80% (85% selected products) | 15–20% |
| Limited company (SPV) buy-to-let | 80% | 20% |
| HMO | 80% | 20% |
| Multi-unit freehold block | 80% | 20% |
| Remortgage, including capital raising | 80% | 20% equity |
| Portfolio landlords (4+ mortgaged properties) | 80% | 20% |
Each case is assessed individually and is subject to the lender's underwriting and valuation. HMOs and blocks at 80% usually need some landlord experience. See HMO mortgages.
The catch: the rent test
At 80% the loan to value is rarely what stops a case. The rent test is. Lenders want the annual rent to cover the interest by 125% (limited companies and basic-rate taxpayers) or 145% (higher-rate taxpayers), worked out at a stress rate. Rates at 80% are higher than at 75%, so the rent has to work harder. The calculator above shows whether yours does.
If the rent falls short, the options are:
- A 5-year fix. Most lenders stress a 5-year fix at the pay rate, rather than a higher notional rate, which supports a bigger loan on the same rent.
- Buying through a limited company. The 125% test applies whatever your personal tax rate. See limited company buy-to-let.
- Top-slicing. Some lenders let surplus personal income make up a rent shortfall.
- Paying the fee up front. A fee added to the loan is rent-tested too.
- A slightly lower LTV. Dropping to 75% often brings a better rate and an easier rent test together.
Where 80% is harder to find
- New-build flats, which many lenders cap at 75%.
- Flats above shops, ex-local-authority blocks and short leases.
- First-time landlords, especially for HMOs and blocks.
- Recent adverse credit, though specialist lenders do consider it.
- Semi-commercial and mixed-use, usually up to 75%. See commercial mortgages.
80% LTV or a bigger deposit?
The best rates sit at 60–65% LTV, and each step up costs a little more. But a smaller deposit leaves cash for the next purchase or for works, which is why portfolio landlords often take the higher LTV. Compare the payments in the buy-to-let mortgage calculator, and see every way to fund the 20% in our buy-to-let deposit guide.
Frequently asked questions
Can I get an 80% LTV buy-to-let mortgage?
Yes. Lenders on our panel lend up to 80% loan to value on buy-to-let, including limited companies, HMOs and multi-unit blocks, subject to underwriting, valuation and the rent test.
Is there an 85% LTV buy-to-let mortgage?
On selected products for a standard buy-to-let, yes. They have higher rates and a tougher rent test, so they suit strong-yielding properties.
Can I get 80% LTV on an HMO?
Yes. Several lenders lend up to 80% on HMOs, usually to landlords with some letting experience, and the rent must pass their rent test.
Can a limited company get an 80% buy-to-let mortgage?
Yes. Limited company (SPV) buy-to-let mortgages go to 80% with many lenders, and the rent test is usually 125% whatever your personal tax rate.
Can I remortgage to 80% LTV?
Yes, including to raise capital, provided the rent supports the bigger loan. If you bought recently, see remortgaging within six months on today's value.
What rent do I need for an 80% buy-to-let mortgage?
Multiply the loan by the stress rate and the interest cover ratio, then divide by 12. For a £200,000 loan at 5.5% and 125%, that is about £1,146 a month.