Buy to Let Mortgage with 20% Deposit

In today’s financial climate, buy to let mortgage lenders are beginning to require more security from customers. A 20% deposit is usually considered the minimum that lenders will require in order to get a loan at a reasonable rate; however this percentage may vary a great deal depending on the provider.

A 20% deposit for a buy to let mortgage may seem like quite a large sum at first, however, it should be remembered that buy to let agreements typically represent a much greater risk to lenders than a traditional mortgage. As such, financial institutions will require a reasonable level of security from customers before an agreement is made.

See below for a selection of BTL mortgage deals - if you require advice please use our specialist service using the link above.

Generally speaking the higher the deposit that is paid, the better the deal will be for the customer, meaning that interest rates will generally be lower, and they will have a better chance of getting a good overall deal on their buy to let mortgage. To the lender, a deposit of 20% or higher for a buy to let mortgage will provide an adequate level of assurance, assuming of course that the customer has a good credit history without any previous debts or unpaid loan etc.

In the past, a 20% deposit may have been enough to provide quite a high level of assurance, however in today’s world, this is now often seen as the minimum percentage that most buy to let mortgage lenders will require.

If you are searching for a suitable buy to let loan, it is recommended to shop around - use our advice service if you would like a specialist broker to do this for you.