Finding The Best 80% LTV Mortgage Deal For Your Circumstances
It can be stressful searching for a Buy to Let mortgage with a 20% deposit but finding only limited options. Most lenders offer a 75% Buy to Let as standard, and your reduced deposit is not something they want to entertain. Don't despair; there are mortgage deal options out there for you – it's just about knowing where to look!
Our specialist mortgage advisors understand the Buy to Let mortgage market in the UK and will help you seek out and gain approval with a lender who understands your situation. Purchasing your Buy to Let property is easy with our expert team at your side!
What is Buy to Let mortgage?
A Buy-to-Let mortgage is a loan taken out with the express purpose of purchasing a property to rent out to tenants rather than actually live in. Buy to Let mortgages often have higher interest rates and require larger deposits. Most lenders expect at least a 25% deposit, but you may be able to get an 80% Buy to Let with a 20% deposit. Buy-to-Let mortgages work in a similar way to a traditional mortgage, although the money borrowed is to purchase a property that you are not intending to live in. Buy-to-let lending is usually on an interest-only basis, meaning that you will only be paying off the interest each month with the rental income rather than the actual capital (the amount your borrowed to buy the property) itself. Most lenders require the rental income to be at least 125% of the monthly interest payment amount, although this can vary between lenders and in some circumstances can be as much as 145% depending on the lender and your own personal circumstances.
You will need to have plans for how the capital amount you borrowed will be paid at the end of the mortgage term. If you haven't made sufficient arrangements to pay off the capital owed, this could require you to sell the rental property.
What is the maximum LTV I can get on Buy to Let?
There is no set maximum, but the standard LTV to a Buy to Let mortgage is 75%. This means you need to put down a minimum deposit of 25%. However, 80% or even 85% LTV mortgages are possible with specialist lenders, and a professional mortgage broker will be able to match you up with suitable deals.
If you’re struggling to amass the required deposit to purchase your rental property or want to reserve some of your cash, these products might be more suitable for you than a standard Buy to Let. They will generally involve you facing higher mortgage interest rates and set-up fees, but there are still some competitive mortgage deals to be found.
Maximise your chance of approval with specialist advice from an expert in 80% Buy to Let Mortgages
What is an 80% Buy to Let mortgage?
When we talk about an 80% Buy to Let mortgage, we mean a mortgage product that requires a reduced deposit of 20%. Products of this kind tend to be more expensive due to the added risk that comes with putting down a smaller deposit, but they can be the right option for certain borrowers.
If you’re looking for an 80% Buy to Let, you may find you have a reduced choice of lenders, as many will only be prepared to offer a maximum of 75% Buy to Let. However, When the Bank Says No has access to specialist lenders who will permit you to put down a minimum deposit of 20% to help you secure a mortgage for that rental property. Contact us to find out more!
Can I get an 80% Buy to Let mortgage?
Though most buy-to-let mortgage lenders will require a higher deposit, there are lenders out there who are willing to offer you a mortgage with this Loan to Value (LTV). Of course, other factors will influence the way lenders to view your application, so if you have an adverse financial history or other complications it may be more difficult to get approval for this kind of higher LTV mortgage. You also may face higher interest rates.
The best thing to do if you’re looking for an 80% Buy to Let mortgage is to contact one of our experienced advisors. We’ll be able to connect you to the right mortgage lender and ensure your application offers you the best possible chances of success.
80% Buy to Let Mortgages FAQs.
80% LTV Mortgage Calculator
Professional 80% Buy to Let mortgage advisors.
When the Bank Says No has helped landlords all over the UK purchase their Buy to Let property with a 20% deposit. Whether you're a first-time landlord with limited funds, or an experienced property investor looking to reserve cash for other purposes, we can help.
Our friendly team will talk through your situation and scour the market for the most suitable mortgage products for your needs. From combing through terms and comparing mortgage rates to ensure you're getting the right deal, to helping you fine-tune your application, we'll be there every step of the way.
Achieving your Buy to Let.
Just because you only have a 20% deposit, it doesn't mean a Buy to Let is off the table. You might be getting stressed that your future plans are out of reach, but the good news is they don't have to be!
Our experienced team of Buy-to-Let mortgage advisors will help you find a mortgage product that is achievable within your circumstances. We take the hassle out of the mortgage loan process, so you can focus on making the most of your new investment.