How Much Deposit for a Buy to Let Mortgage?

Most buy-to-let mortgages need a deposit of at least 25% of the property value, so a maximum loan-to-value (LTV) of 75%. Some lenders will go as high as 80% or even 85% LTV for straightforward properties and strong applicants, but the rates get noticeably less competitive as the deposit shrinks, and the rental cover test gets harder to pass on a larger loan.

This guide sets out typical deposit ranges, the factors that push a lender's requirement up or down, how limited company purchases differ, and two worked examples.

Typical LTV ranges

As a general guide for a standard residential investment property in 2026:

• 75% LTV (25% deposit) is the most common ceiling across mainstream buy-to-let lenders and usually gets access to the widest range of products and the most competitive rates.
• 80% LTV (20% deposit) is available from a smaller number of lenders, typically at a higher rate than the 75% tier.
• 85% LTV (15% deposit) exists but is offered by relatively few lenders, often with tighter eligibility criteria and a noticeably higher rate.
• 60% to 65% LTV deposits (35% to 40% down) are sometimes required for higher-risk property types, first-time landlords, or portfolio landlords already carrying significant borrowing elsewhere.

These figures move with the mortgage market, so treat them as a general shape rather than fixed numbers, and check current product ranges with a broker before assuming what you can borrow.

It is worth noting that the maximum LTV a lender advertises is not automatically the LTV you will be offered. The advertised figure is a ceiling, available to applicants who also clear the lender's rental cover test, credit checks and any specific criteria for the property type. A landlord who technically qualifies for 80% LTV on paper may still be offered a smaller loan, or asked for a bigger deposit, if the rent on the specific property does not comfortably clear the stress test at that higher loan amount. This is one reason it is worth running the numbers on a mortgage calculator before assuming the maximum advertised LTV is realistic for a particular purchase.

Factors that change deposit

Several things push the minimum deposit a lender will accept up or down for a given borrower:

• Property type. Standard houses and flats in good condition attract the most generous LTVs. Houses in multiple occupation (HMOs), multi-unit blocks, new-build flats, ex-local authority properties and properties above commercial premises often need a larger deposit, sometimes 35% or more, because lenders see them as higher risk or harder to resell quickly. Our HMO mortgage guide covers HMO lending specifically.
• Rental cover. If the rent does not comfortably clear the lender's ICR test at a high LTV, increasing the deposit (which reduces the loan and the stressed interest) is often the simplest way to make the numbers work. See our guide on buy-to-let mortgage calculators for how deposit size interacts with rental cover.
• First-time landlord status. Some lenders require a larger deposit, or will not lend at all, to someone who does not already own a residential property or has no letting experience.
• Portfolio size. Lenders classify anyone with four or more mortgaged buy-to-let properties as a "portfolio landlord" and typically want a background review of the whole portfolio, which can affect the deposit or LTV offered on a new purchase even if the new property itself would otherwise qualify for a smaller deposit.
• Credit history and income. A clean credit file and comfortable income outside the property generally support access to higher LTV products; adverse credit history usually pushes the required deposit up.
• Interest-only vs repayment. Most buy-to-let mortgages are taken on an interest-only basis, which does not itself change the minimum deposit, but lenders will want a credible repayment strategy for the capital at the end of the term.

Ltd company deposits

Buying through a limited company (an SPV) generally follows similar LTV ranges to personal-name purchases, typically 75% to 80% LTV from most specialist SPV lenders, though the exact range and rate differ from personal-name products because company borrowing sits in a smaller, more specialist part of the market. A few points specific to company purchases:

• Directors are usually asked to give a personal guarantee, meaning the lender can pursue you personally if the company defaults, even though the mortgage is in the company's name.
• Deposits for a company purchase need to come from the company's own funds or be properly loaned or gifted into the company (often as a director's loan), rather than paid directly by the individual, which has knock-on tax and accounting implications.
• Some specialist SPV lenders require a track record of the director already owning property, which can mean a first purchase through a brand-new company needs a larger deposit or comes with fewer lender options.

See our guide on limited company buy-to-let mortgages for a fuller comparison between personal and company ownership.

Worked examples

Example 1: standard buy-to-let at 75% LTV

A £220,000 terraced house, financed at 75% LTV:

• Deposit required: £220,000 x 25% = £55,000
• Loan required: £165,000

Example 2: HMO at a more conservative LTV

A £280,000 five-bedroom HMO, where the lender offers a maximum of 65% LTV given the property type and the borrower's limited HMO experience:

• Deposit required: £280,000 x 35% = £98,000
• Loan required: £182,000

The higher deposit requirement on the HMO reflects both the property type and the lender's caution around a first-time HMO landlord; an experienced HMO landlord with an established portfolio might be offered a higher LTV on the same property from a specialist lender.

Beyond the deposit itself

Remember that the deposit is not the only cash needed at completion. Budget separately for stamp duty (including the additional dwelling surcharge), legal fees, survey costs, mortgage arrangement fees and any immediate repair or compliance work, such as bringing gas and electrical certificates up to date before letting the property. Underestimating these extra costs is one of the most common budgeting mistakes for first-time landlords.

A rough total cash budget for Example 1 above

Treat this as a checklist rather than a fixed figure, since stamp duty, fees and repair costs vary considerably by property, region and lender. The point is simply that the deposit is usually the largest single number, but rarely the only one you need cash for on completion day.

Disclaimer

This guide is general information for UK landlords, not mortgage advice. LTV ranges and lending criteria vary by lender and change over time - speak to a mortgage broker to confirm what is available for your specific purchase.