| Loan to value | Deposit | Mortgage |
|---|
Plus stamp duty (including the surcharge on additional properties; see our stamp duty calculator), legal fees, a valuation and any lender arrangement fee.
How much deposit do you need for a buy-to-let?
The standard is 25% (a 75% LTV mortgage). Many lenders now go to 80%, so a 20% deposit can work, although the rate is higher and the rent test is harder to pass. Deposits of 35–40% unlock the lowest rates. Most lenders don't accept a gifted deposit from someone who will live in the property, and some don't accept gifted deposits at all.
The rent has to support the loan too, however big the deposit. Check both in the buy-to-let mortgage calculator.
Buy-to-let mortgage requirements
- Rent cover: rent typically has to cover the interest by 125% (limited companies and basic-rate taxpayers) or 145% (higher-rate taxpayers), at a stressed rate.
- Personal income: some lenders want a minimum of around £25,000 a year. Many specialist lenders have no minimum.
- Credit history: recent missed payments, defaults or CCJs narrow the options, but specialist lenders do consider them.
- Age: usually 21 or over, and some lenders have maximum ages at the end of the term.
- Experience: first-time buyers and first-time landlords can get buy-to-let mortgages, but from fewer lenders. HMOs and multi-unit blocks often need landlord experience.
- The property: minimum values (often £50,000–£75,000), standard construction, and a lettable condition. Non-standard property needs a specialist.
- How you buy: personally or through a limited company, which has different rent tests and tax treatment.
Can you use equity instead of a cash deposit?
Yes. Many landlords raise the deposit by remortgaging their home or another rental property. Lenders will want to see where the deposit comes from, and borrowing it on an unsecured loan isn't usually accepted.
Frequently asked questions
What is the minimum deposit for a buy-to-let mortgage?
Usually 20–25% of the purchase price. Many lenders go to 80% LTV, and some specialist products need 30–40%.
Can a first-time buyer get a buy-to-let mortgage?
Yes, but fewer lenders offer it, and some want you to own your own home first. A broker can find the lenders that accept first-time buyers.
Do I need a minimum income for a buy-to-let mortgage?
Some lenders want around £25,000 a year, but many specialist and limited-company lenders have no minimum and rely on the rent.
Can I get a buy-to-let mortgage with bad credit?
Often, yes. Specialist lenders consider missed payments, defaults and CCJs depending on how recent they are and how large.
What costs are there on top of the deposit?
Stamp duty (including the surcharge on additional properties), solicitor's fees, a valuation, any lender arrangement fee and any broker fee.