| Deposit | 20% of the lender's valuation or the price, usually the lower |
|---|---|
| Maximum loan | 80% of the property's value |
| Lender choice | Narrower than at 75% LTV |
| Affordability test | Rent must cover interest by 125%–145% at a stressed rate |
| Who can apply | Individuals and limited companies, depending on the lender |
| FCA regulation | Usually not regulated, unless it is consumer buy-to-let |
Who is this for?
- Landlords who have a 20% deposit and want to keep more cash for refurbishment or the next purchase
- First-time landlords buying a rental property in their own name
- Landlords remortgaging with at least 20% equity after the lender's valuation
- Limited company and HMO buyers who need to know which lenders will go to 80%
What is an 80% LTV buy-to-let mortgage?
Loan-to-value (LTV) is the size of the mortgage compared with the property's value. At 80% LTV you borrow up to 80% of the value and put in the other 20% as your deposit. For example, on a property valued at £250,000, the maximum loan at 80% LTV is £200,000 and the deposit is £50,000. This is an illustration only, not a quote.
Lenders base the loan on the lower of the purchase price and their own valuation, so a low valuation can mean a bigger deposit than you planned.
How many lenders offer 80% LTV buy-to-let?
Fewer than offer 75% LTV. Many lenders cap buy-to-let at 75%, and a smaller group lend up to 80%. Which lenders do so changes, and the rules differ by property type, how you hold the property and your experience as a landlord. We look across the whole market at the point you apply rather than rely on a fixed list.
What do lenders check at a higher LTV?
- Rental cover. The rent must cover the interest by a set margin at a stressed rate. Some lenders apply a stricter test at higher LTVs. See our interest coverage ratio (ICR) guide.
- Your experience and income. Some lenders ask for a minimum personal income or landlord experience for the highest LTVs.
- The property. Type, condition, location and tenancy plans all matter. HMOs and unusual properties narrow the choice further.
- The deposit. Lenders ask where it came from and want to see it in your account.
- Credit and existing borrowing. Portfolio landlords are assessed on the whole portfolio. Our portfolio landlord page explains how.
How does 80% LTV compare with 75% LTV?
A higher LTV can mean a higher interest rate, higher fees and tighter rental cover, because the lender takes more risk. If you can afford the larger deposit, a 75% LTV product may cost less over the term. The 20% deposit route keeps more of your cash free. We compare both options so you can see the difference in your own numbers. Try the buy-to-let calculator to run a first check.
How can you improve your chances?
- Show where your deposit came from and keep it in your own account.
- Gather the likely rent evidence, such as an agent's estimate or a tenancy agreement.
- Check your credit file before you apply. Our credit report check page explains how.
- If you own other rentals, prepare a property schedule. Our client toolkit includes one.
- Speak to us before you apply, so you make one well-prepared application rather than several searches.
How we arrange it
- Free 15-minute call to understand your plans
- Rental affordability and deposit check
- Whole-of-market lender comparison, including 75% and 80% LTV
- Application, valuation and offer managed for you
- Completion and a review before your deal ends
Start with step one: book your free call
Frequently asked questions
Can I get a buy-to-let mortgage with a 20% deposit?
Yes, some lenders offer buy-to-let mortgages at 80% loan-to-value (LTV). The choice of lenders is narrower than at 75% LTV, and the rental cover and other checks can be stricter. We check which lenders are lending at 80% when you apply, because availability changes.
What is the maximum LTV for a buy-to-let mortgage?
Many buy-to-let lenders stop at 75% LTV, and a smaller number lend up to 80%. Limits also vary by property type, how you own the property and your experience as a landlord, so we confirm the current position for your case.
Does 80% LTV change how the rent is tested?
It can. Lenders test that the rent covers the mortgage interest by a set margin, usually between 125% and 145% at a stressed rate. At higher LTVs some lenders apply stricter tests or ask for more evidence. Our buy-to-let affordability and ICR guide explains the test.
Can I remortgage a rental property at 80% LTV?
Where a lender allows it, yes. You would need at least 20% equity after the lender's valuation, and the rent must pass the lender's test. The valuation decides the loan, not the price you paid or the value you expect.
Are HMOs and limited companies harder to borrow against at 80% LTV?
Choice is usually narrower, because fewer lenders offer the highest LTVs for these structures. Read our note on 80% LTV options for HMOs, or see our pages on HMO mortgages and limited company buy-to-let.
What costs sit on top of the 20% deposit?
Stamp duty, legal fees, valuation and arrangement fees, and any broker fee. In England and Northern Ireland, buying an additional home attracts a 5% stamp duty surcharge. Use our stamp duty calculator for an estimate, and see our fees.
Important: Most buy-to-let mortgages are not regulated by the FCA. Your property may be repossessed if you do not keep up repayments, and a receiver of rent may be appointed.
