Find out how much deposit you need for a buy to let mortgage

The standard minimum deposit for a buy to let mortgage is 25% of the property's purchase price, giving you a 75% loan to value (LTV) ratio. This is higher than the typical 5% to 10% deposit required for a residential mortgage, because lenders view buy to let as a higher risk.

Some specialist lenders offer buy to let mortgages with deposits as low as 15% to 20%, though these come with higher interest rates. At the other end, putting down 40% or more unlocks the most competitive rate tiers, significantly reducing your monthly costs.

The deposit you need also depends on your rental income, the property type, and your credit history. A buy to let mortgage broker can search the whole market to find the lowest deposit requirement that matches your circumstances.

The table below shows how much deposit you would need at the standard 25% minimum across four common property price bands. These figures are for the deposit only: you will also need funds for stamp duty, legal fees, and surveys.

Your actual deposit requirement may be higher or lower than 25% depending on the lender and your circumstances. The table below shows how different deposit percentages change the amount needed on a £200,000 property.

Rental income and the stress test

Most lenders apply an interest coverage ratio (ICR) stress test, requiring your rental income to cover 125% to 145% of the mortgage payment at a stressed interest rate (typically around 5.5%). If the rental yield on your target property is low, the lender may require a larger deposit to reduce the loan amount and bring the ICR into an acceptable range.

Property type

Standard residential properties typically need a 25% minimum deposit. HMO properties often require 25% to 30%. New build buy to lets usually need at least 30%, and flats above commercial premises may require 30% to 40%.

Your credit history

With a clean credit record, standard 25% deposit thresholds apply. If you have adverse credit, such as CCJs, defaults, or missed payments, lenders may ask for 30% to 40%. Specialist lenders can sometimes offer more flexible terms. Learn more about buy to let mortgage requirements.

First-time landlords

Some lenders restrict first-time landlord mortgages to 75% LTV, meaning a 25% minimum deposit. A smaller number will lend at 80% LTV to new landlords, though at higher interest rates. Having experience as a homeowner with a clean mortgage history strengthens your application.

A larger deposit reduces your loan amount, which lowers your monthly mortgage costs. It also unlocks better interest rate tiers, creating a double benefit. The table below shows how different deposit levels affect monthly costs on a £200,000 interest-only buy to let mortgage, using representative 2026 rate bands.

These figures are for illustration only. Rates are subject to change and your actual rate will depend on your circumstances and lender assessment. A larger deposit can make the difference between a profitable rental investment and one that barely covers costs, so it is worth considering whether you can stretch to a higher deposit level.

Compare current buy to let mortgage rates to see what deals are available at your deposit level.

There are several acceptable sources for a buy to let mortgage deposit:

• Personal savings: the most straightforward and widely accepted source. Lenders will want to see a clear paper trail in your bank statements.
• Equity from your existing home: you may be able to remortgage to release equity from your residential property to fund the deposit.
• Sale proceeds: money from the sale of another property is fully acceptable as a deposit source.
• Gifted deposit: some lenders accept deposits gifted by a family member, though you will need to provide a gifted deposit declaration confirming the money does not need to be repaid.

You cannot typically use a personal loan as a buy to let deposit. Lenders will check your credit file for recent borrowing, and an unsecured loan taken out to fund a deposit is likely to result in a declined application.

Limited company buy to let mortgages (using a special purpose vehicle or SPV) typically require the same 25% minimum deposit as personal buy to let mortgages. The LTV tiers available are broadly similar, and many specialist lenders now offer competitive rates for company structures.

Directors of the SPV usually need to provide a personal guarantee, and the lender will assess both the company's rental income projections and the directors' personal financial positions. There is no blanket requirement for a higher deposit simply because you are purchasing through a company.

However, limited company buy to let is a more complex area with fewer lenders, so working with a whole-of-market broker gives you access to the full range of products available.