15% Deposit Buy to Let Mortgage
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15% Deposit Buy to Let Mortgage
Lee Sutton talks us through the process of applying for a Buy to Let mortgage with a 15% deposit.
Can you get a Buy to Let mortgage with a 15% deposit?
Yes, you can, although it’s quite a recent development to have such a low deposit threshold for a Buy to Let. A couple of lenders are now prepared to provide mortgages at 85% Loan to Value.
Who is eligible for a Buy to Let mortgage with a 15% deposit? Can anyone use a 15% deposit?
The usual criteria and standard eligibility would apply. You typically need to be a UK resident at the time of receiving mortgage advice. Sometimes there’s a slightly higher age limit – so instead of 18, it may be 21, because lenders might perceive that a 85% Buy to Let mortgage puts them at more risk. Someone aged 21 might have a bit more maturity.
Generally there’s no maximum upper age limit – we’ve seen borrowers take mortgages where they will be over the age of 100 at the end of the term.
Some lenders might require a minimum annual income – typically £25,000 or £30,000. Occasionally you’ll find a lender that wants you to own a property, either currently or previously, to show you have experience as a homeowner, or having owned a Buy to Let before. That said, there are potentially one or two options for first-time buyer, first-time landlords.
Other criteria aren’t normally a huge problem for Buy to Let lenders. A clear credit history is always helpful, but if you have any late or missed payments there’s often a solution if you have an explanation.
Finally, the property you’re buying needs to be fit for purpose. It has to be habitable and rentable on day one, because the lender assesses your mortgage affordability based on the rent.
What’s the minimum deposit for a Buy to Let mortgage?
As we’re highlighting in this podcast, 15% is the minimum. But if you’ve got a bigger deposit, you open up more lenders and potentially better rates, especially if you can reach 25%.
Do most lenders offer 15% Buy to Let mortgages?
No, absolutely not. It’s a fairly recent development and most lenders want a minimum of 25% deposit [information correct at the time of recording in January 2026].
Could I get a Buy to Let mortgage with a deposit lower than 15%?
Generally, I would say no. However, there is something called Let to Buy where this may be possible, but it’s a completely different scenario.If someone owns their residential property and later needs to let it, they might not have 15% equity in the property. That’s a scenario that you could look at if needed.
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How much can you borrow with a 15% deposit for a Buy to Let mortgage?
You’ve got a 15% deposit, so you’ll be borrowing 85%. The mortgage amount itself is based on the rent you will get from the property. Lenders take the rent and apply a ‘stress test’.
Depending on which tax bracket you’re in, that stress test is either 125% for standard rate or 145% at the higher rate. It can go up to 165% if the property is in multiple occupancy.
Different lenders have their own stress tests, so it’s a case of us finding the right lender for the rent you’ll get, to give you the mortgage amount you require.
How is affordability calculated for a Buy to Let mortgage with a 15% deposit?
It’s all about the rent. If anybody’s considering an 85% mortgage, call us and let us know what the rent is going to be. We can then do some calculations from that basic information and let you know whether that rent will stack up for a mortgage.
Can you get a 15% Buy to Let mortgage if you have bad credit?
Possibly. You probably can, but it’s really going to depend on what the credit issue was.
Lenders might be comfortable with small credit glitches like a late or missed payment on a mobile phone bill or utility bill. They’re not too worried about those.
But if it looks as though you are having current problems, or there have been defaults or County Court Judgements for large amounts, the lender will want to know why.
If it’s something in the past – perhaps ill health or a period of unemployment that’s all behind you – lenders can take a view on it.
Can I buy a new build Buy to Let with a 15% deposit?
Possibly. If it’s a new build flat, certain lenders may impose a maximum Loan to Value, which might be 70% or 75%, for example. It’s similar with new build houses.
It is possible, but it would come down to the lender’s criteria regarding new builds.
What other costs are involved with a Buy to Let mortgage?
Whether it’s an 85% or 75% Buy to Let loan, the costs are pretty similar across the board. There may well be a lender’s arrangement fee.
We would look at whether it’s cost-efficient to pay an arrangement fee and get a lower rate, or to go for a higher rate and no arrangement fee. That’s part and parcel of our advice service.
There would likely be a valuation fee, based on the purchase price of the property. You then have solicitors’ fees which, again, are standard. Mortgage advisers may also charge a fee for their advice.
How do I apply for a Buy to Let mortgage? What’s the process?
The simplest way to apply for a Buy to Let mortgage is to talk to an experienced, multi-award winning mortgage broker like us.
After an initial chat, we can give you an idea of what’s achievable and what you can borrow. If you’re happy with our advice, we would then complete a full fact-find and explore your goals and aims. Taking that into account, we’d confirm the Loan to Value, your rental return and the type of deal you can go for.
Your background circumstances are also important – your income, whether you’re a first-time buyer, and if you have had any credit problems. We would then source the mortgage for those needs, and manage that process from start to finish.
You’ve demonstrated how a mortgage broker can help – have you got anything to add?
The property process can be fairly long-winded, and it’s not just about applying for a mortgage. The application does then need to be managed.
For example, something might come up on the survey report, or the solicitor could find something on the lease or issues with ground rent or management charges. The estate agent might be pushing for updates. We deal with all of that for you. We’re here to help you through the whole process.
Perhaps there’s something a bit quirky about your application – it might be property with a particular type of construction, for example. We’ve got a team of advisors here with decades and decades of experience between us. There’s a big pool of knowledge here.
If I can’t deal with a particular problem straight away, I can always bounce it off someone in the office. There’s always a solution we can find for you.
Key Takeaways:
- Buy to Let mortgages with a 15% deposit (85% Loan to Value) are available, but this is a recent development, and only a couple of lenders currently offer them.
- Lenders typically require you to be a UK resident, may have a higher minimum age (e.g., 21), and often require a minimum income (e.g., £25,000 to £30,000).
- While 15% is the minimum deposit, having a larger deposit, especially 25%, will open up options with more lenders and can lead to better interest rates.
- The amount you can borrow is determined by the rent you will receive, which is assessed using the lender’s ‘stress test’ (e.g., 125% for standard tax rate, 145% for higher tax rate).
- An experienced mortgage broker can guide you through the application process, source a deal for your specific needs, and manage all aspects of the application, including dealing with surveys, solicitors, and estate agents.
A fee may be payable if we progress your application. Our average fee is around £200 and the maximum you may pay is £995 for Retirement Interest Only mortgages.
Mortgage Style Ltd, trading as Mortgage Style, is an appointed representative of HLPartnership Limited, which is authorised and regulated by the Financial Conduct Authority.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF BUY TO LETS. YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.