Standard BTL Deposit Rules
Standard buy-to-let mortgages require a minimum 25% deposit, meaning the maximum Loan-to-Value (LTV) is usually capped at 75%.
Unlike residential mortgages for owner-occupiers, which can sometimes be secured with as little as a 5% deposit, investment mortgages carry stricter risk profiles for lenders.
The standard maximum Loan-to-Value (LTV) for a buy-to-let mortgage in the UK is 75%, meaning investors must contribute a 25% deposit from their own funds (or private investor capital). While 80% LTV products occasionally appear in the market, they usually come with punitively high interest rates and massive arrangement fees, making them unviable for cash flow.
Scaling Constraints
This 25% deposit requirement is the primary constraint that prevents new investors from scaling quickly, which is why the BRRR strategy (recycling deposits via refurbishment uplifts) is so heavily utilized in the industry.