BTL morgage question

Dinah93

What kind of deposit is needed for a BTL morgage? I think it it is higher than a standard owner occupied morgage. I know things like this change quite a lot, but it's something we'd like to aim for in the next couple of years, so knowing if we're aiming for 15%, 25% etc would help focus this goal.

luckyfool

An absolutely minimum of 20%, but 25%-30% to get the better deals. It also depends on the rental income from the property ... so unless the rental income is high it can often mean that the maximum loan might be closer to 65%-70% instead of 80%.

e.g. many lenders work on a rental cover required of 125% on a rate of interest of 4.99%. So in that scenario a rental income of £1,000 per month would support a buy to let mortgage of £192,000.

mynameisdave

If you are going to go new build you may well require as much as 30% for any deal, and 40% for a good deal.