Myth Buster: "I Have to Have a 25% Deposit"

Many people believe that Buy to Let mortgages always require a 25% deposit. This assumption stops a lot of would-be landlords from even exploring their options.

The truth? While 25% is common, it’s not always required.

At Endurance Mortgages, we regularly help clients secure Buy to Let mortgages with smaller deposits, depending on their circumstances, property type, and lender choice.

Where the 25% Deposit Myth Comes From

Traditionally, many Buy to Let lenders preferred a 75% loan-to-value (LTV), which equals a 25% deposit. This became the “rule” people remember.

But the market has changed.

Today, some lenders offer Buy to Let mortgages at:

• 80% LTV (20% deposit)

• 85% LTV (15% deposit) in limited cases

• Lower deposits for existing landlords, strong rental income, or specific property types

The key is matching the right borrower to the right lender.

What Really Determines the Deposit You’ll Need

Instead of a fixed percentage, lenders look at several factors:

• Rental income – Must usually cover the mortgage by a set margin

• Your experience – First-time vs existing landlord

• Your personal income – Some lenders need a minimum earned income

• Property type – Flats, houses, HMOs, or new builds all differ

• Credit history – Strong credit opens more options

A solid application can often reduce the deposit needed.

First-Time Landlords: You Still Have Options

Another common belief is that you need landlord experience and a large deposit.

In reality:

• Some lenders accept first-time landlords

• Some allow Buy to Let alongside your first residential mortgage

• Some accept lower deposits if affordability and rental income are strong

This makes Buy to Let more accessible than many people expect.

Why Your Bank Might Say No

High-street banks often:

• Stick rigidly to 25% deposit rules

• Don’t cater well to first-time landlords

• Avoid more flexible Buy to Let scenarios

That doesn’t mean the mortgage doesn’t exist - just that it doesn’t exist there.

How Endurance Mortgages Can Help

At Endurance Mortgages, we:

• Assess your full financial position

• Calculate realistic rental affordability

• Identify lenders offering lower deposit Buy to Let options

• Explain risks, costs, and long-term planning clearly

• Help you decide whether Buy to Let is right for you now - or later

We focus on sustainable investing, not stretching you unnecessarily.

Final Thoughts

You don’t always need a 25% deposit to become a landlord. With the right advice and lender choice, Buy to Let could be closer than you think.

Key takeaways: ✓ 25% deposits are common, but not always required ✓ Some lenders accept 15–20% deposits in the right cases ✓ Rental income and lender criteria matter more than a fixed rule ✓ Broker advice can unlock options you may not see yourself

If you’re thinking about Buy to Let and unsure where you stand, speak to Endurance Mortgages for honest, expert guidance tailored to your goals.

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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. Some Buy to Let mortgages are not regulated by the Financial Conduct Authority A fee may be charged for mortgage advice. The exact amount will depend on your circumstances. Some Buy to let mortgage are not regulated by the Financial Conduct Authority.

Endurance Mortgages Ltd is an appointed representative of The Right Mortgage Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales no. 15060351. Registered Address: Worting House, Church Lane, Basingstoke, Hampshire RG23 8PX.