How much deposit do you need for a buy-to-let mortgage?
Most buy-to-let mortgages require a deposit of at least 20-25% of the property value, meaning lenders will typically lend up to 75-80% loan-to-value (LTV). So on a 200,000 pound property you would usually need at least 40,000 to 50,000 pounds as a deposit. Specialist property types such as HMOs and multi-unit blocks often need more — commonly 25-30% or higher. This is significantly more than a residential mortgage, where deposits can be as low as 5-10%.
Why is the buy-to-let deposit higher than a residential one?
Lenders see rental property as higher risk than an owner-occupied home. Rent can dry up during voids, tenants can default, and landlords are more likely to sell if the numbers stop working. A bigger deposit gives the lender a larger equity cushion and reduces their exposure if property values fall. It also brings the loan down to a level the rent can realistically support once the stress test is applied.
How does LTV affect your deposit and rate?
Loan-to-value is simply the loan as a percentage of the property value, and your deposit is the rest. Lenders price mortgages in LTV bands, so the more you put down, the cheaper the rate. As a rough guide:
- 75-80% LTV (20-25% deposit): the mainstream buy-to-let range with the widest choice of lenders.
- 65-70% LTV (30-35% deposit): noticeably better rates and easier stress-test pass rates.
- 60% LTV or below: the best pricing, favoured by landlords maximising cash flow.
Putting down more than the minimum is often a deliberate strategy: the lower rate improves monthly cash flow and the deal clears the stress test more comfortably.
How does the rental stress test change your deposit?
Even if you have a 25% deposit, you may need to put down more if the rent will not support the loan. Lenders apply a rental stress test, requiring the rent to exceed the mortgage payment at a stressed interest rate by a set margin (the ICR). If a property's rent is low relative to its price — common in lower-yield areas such as parts of southern England — the stress test, not your deposit, becomes the limiting factor, and you may need a bigger deposit to borrow at all. Our guide to the rental stress test and ICR explains this in full.
What other costs come on top of the deposit?
The deposit is only part of the cash you need to complete. Budget also for:
- Stamp duty land tax: the higher rate for additional properties applies to buy-to-let, adding a significant surcharge.
- Arrangement fee: often 1-2% of the loan, which can be added to the mortgage or paid upfront.
- Valuation and legal fees: for the lender's valuation and conveyancing.
- Broker or platform fee: with Assesr this is the 0.5% Assesr Fee, payable only on drawdown.
Can you use equity from another property as a deposit?
Yes, and experienced landlords do this constantly. Remortgaging a property that has risen in value releases equity that can fund the deposit on the next purchase, letting you grow a portfolio without injecting fresh cash each time. Our buy-to-let remortgage guide explains how equity release works and what to watch for.
How do you find the right deposit and lender for your deal?
The deposit you need depends on the property, the rent, your tax position, and the lender. Assesr assesses your figures, packages the deal into a lender-ready credit paper in around 60 seconds, and matches it to specialist buy-to-let finance lenders offering the LTV your deal supports. You pay nothing until completion — just the 0.5% Assesr Fee on drawdown, a quarter of the typical broker fee.
Frequently asked questions
What is the minimum deposit for a buy-to-let mortgage?
Most buy-to-let lenders require at least 20-25% of the property value as a deposit, meaning a maximum loan-to-value of 75-80%. A few lenders offer higher-LTV products, but the mainstream market sits around 25%. Specialist property types like HMOs often require 25-30% or more.
Can I get a buy-to-let with a 15% deposit?
A small number of lenders offer buy-to-let at up to 85% LTV, so a 15% deposit, but these products are limited, carry higher rates, and are harder for the rent to support under the stress test. The vast majority of landlords put down at least 25%.
Does a bigger deposit get me a better rate?
Yes. Lenders price buy-to-let mortgages in LTV bands, so dropping from 80% to 75% or 65% LTV usually unlocks a lower rate. A larger deposit also makes the deal easier to pass the rental stress test, which can increase how much a given rent will support.