Lets look at what the Minimum Buy To Let Mortgage Deposit requirements are for property investors in the UK.
If you are thinking of investing in a buy to let property, then you will want to look at what property you can afford with your current deposit.
However the answer is not as simple as you may think, that’s because you need to meet the minimum criteria in order to qualify for the lowest deposit buy to let mortgages.
What’s The Minimum Deposit Required For A Buy To Let Mortgage?
Typically to take out a Buy To Let Mortgage, the minimum you are required to provide is a 25% deposit. If you provide a larger deposit of up to 40% then you are going also secure a lower interest rate than at 25%.
Also don’t forget that when you purchase a buy to let property, there will be other fees involved as well as just the deposit. You need to allow for finance fees, legal fees, stamp duty, valuation fees and other costs involved with the purchase. These extra fees can sometimes add up to an extra 2-4%+ of the purchase cost.
However if you meet the criteria and the property is suitable, it may be possible to get a buy to let mortgage with a low 20% deposit.
Buy To Let Mortgage With 20% Deposit
It may be possible to purchase a buy to let property with a mortgage, using just a 20% cash deposit. However both the proposed applicants and the property need to meet the criteria.
Criteria varies between lenders and is subject to regular change, but it may include:
- Minimum Property Value (Usually £65,000)
- Applicant Homeowner
- Clear credit file
- Single let property (not a HMO or MUFB)
- Buy to let experience
Its best to speak with a profession to find out what you qualify for. At Bolton Business Finance we specialise in property finance, you can contact us to discuss your mortgage options.
Low Deposit Buy To Let Mortgage Alternatives
If you are buying a buy to let property that requires renovation, then you may need to using a short term Bridging Loan instead. A buy to let mortgage can only be secured on a property that is habitable and suitable for rental.
It is possible to purchase a buy to let property with just a 15% deposit, if it requires refurbishment. Read more about it in our other article here. 85% LTV Bridging Loan  Residential Buy-to-Let Refurbishment
Buy To Let Mortgage Deposits – FAQ
How Much Deposit Do You Need On A Buy To Let Mortgage?
The majority of banks and lenders require at least a 25% deposit for a Buy To Let Mortgage. If you meet the required criteria, then there are a small number of lenders that will offer buy to let mortgages with just a 20% deposit. The criteria for 20% deposit buy to let mortgages usually things like, having a clean credit score and having existing landlord experience.
Do I Need A Deposit For A Buy To Let Mortgage?
Yes, in most cases you will need a deposit to purchase a buy to let property with a mortgage. The minimum deposit required is usually around 20% – 25% of the agreed purchase price. If you own other buy to let properties with significant equity, it may be possible to offer a charge(s) against them instead of a cash deposit.
Can I Get A Buy To Let Mortgage Without A Deposit?
In order to get a buy to let mortgage without a cash deposit, you would need to provide additional security. This would usually be in the form of a first of second legal charge over another property with sufficient equity. If you don’t own any other properties to use as security, then you would need a cash deposit of 20% – 25%.
Can I Get A Buy To Let Mortgage With 10% Deposit?
We are not currently aware of any buy to let Mortgage providers that only require a 10% deposit. The minimum required is currently 20% (provided you meet the criteria). You may be able to offer a charge against another investment property instead of a cash deposit.
Can I Get A Buy To Let Mortgage With 15% Deposit?
We are not currently aware of any buy to let Mortgages that only require a 15% deposit. The minimum required is currently 20%, provided you meet the criteria required. You may be able to offer a charge against another investment property instead of a cash deposit.
Apply For Buy To Let Mortgages With Low Deposit
As an independent broker, we can assess your buy to let mortgage options for you.
We take time to understand your individual circumstances and then find mortgages to match.
Fill in the form below and we will be in touch straight away or call 0161 5469128