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Yes, but only just. Across my panel, one lender will go to 85% loan to value on a buy to let mortgage, a small number go to 80%, and the majority cap borrowing at 75%. An 85% LTV buy to let mortgage exists, in other words, but it is the exception on my panel rather than the norm, and it comes with real trade-offs attached.
Why do most buy to let lenders cap at 75%?
Because of the rental cover test. Every buy to let lender stress-tests whether the rent would still cover the mortgage payment at a higher interest rate than you are actually paying, then asks for a margin on top, commonly 125% to 145% depending on your tax position and whether you are borrowing personally or through a company. The smaller your deposit, the bigger the loan, and the bigger the loan, the harder it is for the rent to clear that test. Most lenders find the sums stop working comfortably once borrowing goes much above 75%, so rather than offer a product that fails on most applications, they simply do not build one. It is a practical limit as much as a policy one.
What is different about the lenders that go higher?
Nothing sinister, just a different risk trade-off. A lender offering 80% or 85% on buy to let is carrying more risk on a smaller cushion of your own money, so it typically prices for that: fewer products to choose from, tighter rental cover requirements, and often extra conditions on income, property type or credit history. None of that makes the product unusable, but it does mean you are choosing from one or two options rather than the wide market you would see at 75%.
Does the rental cover test still apply at 85% LTV?
Yes, and it bites harder. At a smaller deposit the loan is larger relative to the property, so the rent has to work proportionally harder to clear the same stress rate and cover margin. In practice this often means the property needs a stronger yield than an equivalent purchase at 75% would. A good income and clean credit history do not get round this: the test is largely about the rent, not you.
Is an 85% LTV buy to let mortgage the right choice?
That depends on why you are short of deposit and what the alternative costs you. If you are light on deposit but the property lets well and your figures clear the higher cover test, it can be the difference between buying now and waiting. But it is worth weighing against what you give up: access to one lender instead of most of the market, typically higher pricing, and a narrower set of criteria to fit. For a lot of buyers, finding a bit more deposit and borrowing at 75% ends up the cheaper and easier route overall.
How does 85% compare with 80% and 75% LTV?
| Loan to value | How many lenders on my panel | What that generally means |
|---|---|---|
| 75% | The majority | The default position: the widest choice of lenders and generally the most competitive pricing |
| 80% | A handful | Fewer lenders, but still a reasonable spread of options |
| 85% | One | A single product, narrower criteria, and pricing that typically reflects the extra risk |
Figures are for illustration only, based on the assumptions and sources shown, and are not a quote or a guarantee of what you can borrow or what a lender will accept. Lender criteria and rates change often. Read the full important information.
Source: HTG Mortgages panel review, August 2026. Panel access and criteria change, so this is a snapshot rather than a standing guarantee.
What else do you need to budget for, on top of the deposit?
The deposit is rarely the whole cash requirement. You should also allow for the higher rate of stamp duty on an additional property, currently an extra 5% on top of standard rates, the lender’s arrangement or product fee, a valuation, legal fees, and anything the property needs before a tenant can move in. At 85% LTV these add-on costs matter even more, because there is less headroom in your budget if the fee gets added to the loan and pushes you over the lender’s maximum.
Does a limited company change any of this?
Not in a way that helps at the top end. Limited company buy to let can bring the rental cover margin down at 75% LTV, which is genuinely useful, but at 85% LTV your choice of lender is already down to one, and that lender’s own rules decide whether it lends to a company at all. If a company structure matters to you, it is worth checking that specifically rather than assuming it carries across.
Speak to an expert
Want to know whether your figures would work at 85% LTV, or whether a bigger deposit and the wider 75% market suits you better? Call me on 01425 203055 or email info@htgmortgages.com. I will run the numbers before you offer.
So what should you actually do?
Start by checking whether the numbers work at 75%, because that is where the real choice and the sharper pricing sit. If the deposit genuinely is not there, ask before ruling anything out: panel access to the 85% option changes over time, and I would rather check it against your figures on the day than have you plan around something that may have moved.
Last updated: 26 August 2026. Information correct as at August 2026. This is general information rather than advice on your own situation.
For the wider picture on deposits generally, my guide to how much deposit you need for a buy to let mortgage covers the rental cover test in more depth. If it is the loan amount rather than the LTV you are trying to work out, my guide to how much you can borrow on a buy to let mortgage is the next step. For everything else buy to let, the buy to let hub has it collected in one place.
Need Personal Mortgage Advice?
Every buyer’s situation is different. While this guide explains the general rules, the right mortgage for you depends on your income, deposit, credit history and future plans. If you’d like tailored advice, I’m here to help, with whole-of-market coverage.
