1 Thought on How much of a deposit is required for a buy to let mortgage?
  1. Reply
    pharte
    April 12, 2012 at 4:37 am

    Already been done, loads of people have lost everything they had.
    This was a big reason that some of the banks and lenders went bust.
    Typical deposit is now around 25% with a higher interest rate on a commercial or buy to let mortgage.
    do the maths, typical rent on a 4 bed house is around Ā£650 per month, the cost to buy it is Ā£150,000 minimum add landlords safety checks, maintenance, etc etc and you’ll see the maths don’t give you any profit.
    It’s all down to the outgoings against income and I’d be very surprised if you could get a mortgage unless you have a large deposit.
    One other thing to think about is HMO and houses over 2 storeys. Houses of multiple occupancy and 3 plus storey houses have strict rules about fire escapes, emergency lighting, fire doors etc, they are treated much like a hotel as far as rules and regulations are concerned.

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