How much deposit do I need for a buy-to-let mortgage?

Buy-to-let mortgages in the UK typically require a minimum deposit of 25% (75% LTV), compared to as low as 5% for residential mortgages. Some lenders accept 20% deposits for standard single-unit residential properties with strong rental yields, but this is less common. For HMOs (Houses in Multiple Occupation), multi-unit freehold blocks, and properties above commercial premises, lenders typically require 30–35% or more. The larger your deposit, the lower your interest rate — moving from 75% to 60% LTV can reduce your rate by 0.5–1% or more in the current market. Your deposit can come from personal savings, equity released from another property, or a remortgage. For expat or foreign national buy-to-let applicants, a 25% minimum deposit is standard across nearly all specialist lenders.

Can I get a buy-to-let mortgage as an expat or non-UK resident?

Yes. A number of specialist UK lenders offer buy-to-let mortgages specifically for British expats and foreign nationals living abroad — often called expat buy-to-let mortgages. The property must be located in England, Wales, or Scotland, and the rental income must meet the lender's interest coverage ratio (ICR). Most expat buy-to-let lenders require a 25% deposit, provable income (employment or self-employment) in a major currency, and a UK bank account for mortgage payments. Some lenders also require a UK-based property management agent if you will be managing the tenancy from overseas. Interest rates on expat buy-to-let mortgages are typically 0.5–1% higher than equivalent UK-resident products. The Mortgage Story specialises in expat buy-to-let mortgages and can compare all available options across the whole market.

What rental yield do I need for a buy-to-let mortgage?

Buy-to-let mortgage lenders assess affordability primarily through the rental income, using a calculation called the Interest Coverage Ratio (ICR). The standard requirement is that the monthly rent must cover 125% of the monthly mortgage interest payment at a stress-tested rate — typically 5.5–6.5% regardless of the actual rate on offer. For example, if the mortgage is £200,000, at a 6% stress rate the monthly interest is £1,000, meaning the property must achieve a minimum rent of £1,250 per month. For higher-rate taxpayers (those earning over £50,270) or limited company applicants, some lenders apply a 145% ICR. If the rental income falls short of the ICR, some lenders will consider top-slicing — using your personal income to bridge the gap. A broker can calculate whether your target property passes the stress test before you apply.

What is the difference between a personal and limited company buy-to-let mortgage?

A personal buy-to-let mortgage is held in your own name. A limited company buy-to-let mortgage is held by a company (usually an SPV — Special Purpose Vehicle — set up specifically for property investment). The main differences are: Tax: In a limited company, mortgage interest is fully deductible against rental income (restoring pre-2017 tax treatment). Personally, you can only offset 20% of mortgage interest as a tax credit. Rates: Limited company mortgages typically carry rates 0.3–0.8% higher than personal mortgages. Lender choice: Fewer lenders offer limited company buy-to-let, but the market has grown significantly. Directors must personally guarantee the mortgage in most cases. Stamp duty: The same surcharges apply regardless of ownership structure. For higher-rate taxpayers building a portfolio, the tax saving from a company structure often outweighs the higher rate. A specialist broker and a tax accountant should both be consulted before deciding.

Buy to Let Mortgage Guide UK | Landlord Advice 2026

Written & reviewed by

Amber Story, Mortgage Broker & Founder

Amber is the broker and founder of The Mortgage Story, providing independent, whole-of-market mortgage advice across the UK. The Mortgage Story Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority. About The Mortgage Story →

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Buy to Let Mortgages in the UK: A Landlord’s Complete Guide for 2026

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