If you are asking how much deposit for a buy-to-let property in 2025, the typical answer is around 25 percent of the purchase price. Buy-to-let mortgages are assessed differently from residential mortgages because lenders depend on rental income rather than personal income to cover repayments. This makes them a higher risk, which is why the deposit requirement is usually larger.
Key summary:
- Most lenders expect a deposit of around 25 percent
- Some accept deposits as low as 20 percent, but these usually come with higher costs and fewer options
- Factors such as the lender, property type, your credit history, and the loan-to-value ratio influence deposit requirements
- Larger deposits often unlock better rates and wider mortgage product choices
- Additional costs include stamp duty, legal fees, and ongoing landlord expenses
Whether you are a first-time landlord, an experienced investor, or converting a residential property into a rental, understanding how deposits work is an essential first step. For tailored advice, you can also explore expert buy-to-let services from Hamptons.
What influences your buy-to-let deposit amount?
The amount you need to put down as a deposit for a buy-to-let mortgage depends on several factors. While 25 percent is the typical benchmark, your personal circumstances, the type of property, and the lender’s approach can all make a difference.
Loan-to-value (LTV) explained
LTV, or loan-to-value, is one of the key measures lenders use. It refers to the percentage of the property’s value you borrow compared to the amount you contribute upfront. For example, if a property is worth £200,000 and you provide a £50,000 deposit, your mortgage covers the remaining £150,000. This is a 75 percent LTV.
The lower the LTV, the less risk the lender takes on, as you are committing more of your own money. This often results in access to lower interest rates and a wider choice of mortgage products.
How your credit history affects deposit requirements
Your credit record is another important consideration. A strong credit history can give you more options at the standard 25 percent deposit level, and in some cases, lenders may consider you for lower deposits. If your credit score is weaker, you may face higher deposit requirements or higher interest rates to offset the lender’s risk.
Property value, type, and location
The nature of the property also plays a role. Flats in large developments, new builds, or properties in high-demand areas such as London can sometimes trigger stricter deposit requirements. In contrast, established houses in regional markets may be seen as lower risk, making lenders more flexible.
Type of buyer – first-timers vs portfolio landlords
The experience level of the buyer matters too. First-time landlords or accidental landlords are often asked for higher deposits because they have no track record. Experienced landlords with existing properties in their portfolio may have more negotiating power with lenders and access to more favourable deposit terms.
For more detail on financing strategies tailored to landlords, take a look at mortgages and finance options for landlords.
How much deposit is typically required for a buy-to-let?
While requirements vary between lenders, most buy-to-let mortgages need a deposit of around 25 percent. This is seen as the standard in today’s market, giving landlords access to the broadest range of mortgage products and competitive interest rates.
Standard deposit range (20–40%)
Although 25 percent is the norm, deposits can range from 20 percent up to 40 percent of the property’s purchase price. Some specialist lenders may accept 20 percent deposits, but these usually come with higher interest rates and stricter conditions. At the other end of the scale, landlords who can put down 40 percent often benefit from the lowest rates available and a wider choice of lenders.
Minimum deposit scenarios – are 5% or 10% ever possible?
Unlike residential mortgages, buy-to-let products with very low deposits, such as 5 or 10 percent, are generally not available. In rare cases, specialist lenders or secured arrangements might offer them, but the interest rates are usually high and the risks significant. For most landlords, starting at 20 or 25 percent is the realistic entry point.
Can you use equity as a deposit?
Equity from another property can sometimes be used to fund a deposit. For example, if you already own a home with substantial equity, you may be able to release funds through remortgaging and use that money as your buy-to-let deposit. This approach can be useful for portfolio landlords looking to expand, but it also increases your financial commitments across multiple properties.
For practical guidance on entering the market, Hamptons provides step-by-step guidance on becoming a landlord.
Should you put down a larger deposit? Pros and cons
Once you know the minimum deposit requirements, the next question is whether putting down more is worth it. A bigger deposit can reduce your borrowing costs, but it also ties up more of your capital.
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Advantages of larger deposits |
Downsides of larger deposits |
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Access to lower interest rates |
Less cash available for other investments |
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Reduced monthly mortgage payments |
Risk of overcommitting capital |
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Wider choice of mortgage products |
Lower potential returns from leveraging |
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Greater security against market fluctuations |
Less flexibility if property values change |
The right choice depends on your overall strategy. Some landlords prefer to maximise leverage, using smaller deposits to grow their portfolio quickly. Others prioritise stability and lower costs by committing more capital upfront.
For a clearer picture of the wider financial commitments involved, Hamptons provides detailed landlord cost breakdowns.
