How Much Deposit Do You Need for Buy to Let?
Renting property in the UK is a big business. In Q4 2025, UK Finance reported that there were almost 60,000 new buy-to-let loans advanced in the UK, totalling almost £11.2 billion. This was up 18.2 per cent versus the same period the year before.
Similarly, the average gross buy-to-let rental yield for the UK in Q4 2025 was 7.18 per cent, compared with 6.99 per cent in Q4 2024.
If you’re considering becoming a landlord in the UK, one of the first questions you’ll need to answer is how much money to put down upfront.
Buy to let mortgages work differently from standard residential mortgages, and the deposit requirements reflect that.
The Minimum Buy-to-Let Deposit
Most lenders require a minimum deposit of 25% of the property’s value for a buy to let mortgage. This means you’re borrowing no more than 75% of the property’s value, expressed as a 75% loan-to-value (LTV) ratio.
Some specialist lenders may consider a 20% deposit (80% LTV), but these products are less common, typically come with higher interest rates, and often carry stricter eligibility criteria. In practice, the majority of landlords put down 25% or more.
What Is LTV and Why Does It Matter?
LTV stands for loan-to-value. It’s simply the ratio between the mortgage amount and the property’s value.
For example:
- Property value: £250,000
- Deposit (25%): £62,500
- Mortgage (75% LTV): £187,500
The lower your LTV, the less risk the lender takes on and the better the mortgage rates you’re likely to be offered. Moving from a 75% LTV to a 65% LTV (a 35% deposit) can unlock significantly more competitive deals then if you were providing a 20% deposit.
Key Buy-to-Let Requirements in the UK
Beyond the deposit, lenders assess several other factors before approving a buy to let mortgage:
- Rental income coverage — Most lenders require the expected monthly rent to cover 125%–145% of the monthly mortgage repayment. This is known as the rental stress test.
- Minimum income — Many lenders require a personal income of at least £25,000 per year, separate from rental income.
- Age restrictions — Most lenders set a minimum age of 21–25, and many cap the mortgage term so it ends before the borrower turns 75–85.
- Credit history — A clean credit record is important. Missed payments, CCJs, or defaults can limit your options significantly.
- Property type — Some lenders restrict lending on certain property types, such as HMOs (houses in multiple occupation), new builds, or ex-local authority flats.
- Minimum property value — Many lenders set a minimum property value, typically around £50,000–£75,000.
Keen to learn more? Discuss the buy to let mortgage options available to you today.
Does the Deposit Differ for Different Property Types?
In short, yes. The type of property you’re buying can affect the deposit required:
- Standard residential buy to let — 25% deposit is the typical starting point
- HMOs and multi-unit blocks — Often require 30%–40% deposit due to increased lender risk
- New-build flats — Some lenders apply a higher LTV cap (e.g. requiring a 30% deposit) due to concerns around valuations
Don’t Forget the Additional Costs!
Your deposit isn’t the only upfront cost. When budgeting for a buy to let purchase, factor in:
- Stamp Duty Land Tax — Buy-to-let properties attract a 3% surcharge on top of standard rates
- Survey and valuation costs
- Solicitor/conveyancing fees
- Landlord insurance and initial void period cover
These costs can add thousands to your upfront outlay, so it’s worth planning carefully before committing.
How Exe Mortgages Mortgage Broker Can Help
Buy to let criteria vary considerably between lenders, and not every lender appears on comparison sites. An expert mortgage broker like Exe Mortgages can search the whole of market on your behalf, match you to lenders suited to your circumstances, and help you secure the most competitive rate for your deposit level.
Whether you’re a first-time landlord or looking to expand your portfolio, getting expert advice early can save you both time and money.
Ready to explore your options? Speak to one of our advisers today for a no-obligation conversation about your buy to let plans.
Frequently Asked Questions
- Can I get a buy to let mortgage with a 10% or 15% deposit?
In most cases, no. The vast majority of UK lenders require a minimum 25% deposit for a buy to let mortgage. A small number of specialist lenders may consider 20%, but products at this LTV are limited, carry higher interest rates, and come with stricter eligibility criteria. If you’re struggling to reach the 25% threshold, speaking to a whole-of-market broker is the best way to understand what options may be available to you.
- Can I use a buy to let mortgage as a first-time buyer?
n some cases it’s possible, but more difficult. Some lenders will not offer buy to let mortgages to first-time buyers, as they prefer applicants to already own their own home. Those that do will often require a larger deposit and stricter income checks. It’s a route some people take as a way to get onto the property ladder while continuing to rent themselves, sometimes called “rentvesting”. It comes with additional risks and tax considerations worth discussing with a broker.
- How much deposit do I need for a buy to let in 2026?
The standard minimum remains 25% of the property’s purchase price, though this can rise to 30–40% for higher-risk property types such as HMOs or multi-unit blocks. The more deposit you put down, the lower your LTV and generally the better the mortgage rate you’ll be offered. With interest rates having shifted significantly in recent years, lenders are also applying more rigorous rental stress tests, making it more important than ever to get your deposit level right from the outset.
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