Bespoke Finance

85% LTV Buy-to-Let Mortgage Comparison

85% LTV Buy to Let Mortgages are the highest LTV you can get as a property investor, this includes remortgages. 


In 2017 only one Buy-to-Let lender KRBS offered 85% LTV Mortgages, in 2018 they were joined by Kensington Mortgages and in 2019 Vida Home Loans.  


Given the limited options for 85% LTV, you will typically not enjoy the higher mortgage rates. Though for many landlords it is useful in achieving an aim.


The 85% LTV Remortgage offers landlords the ability to raise capital at the maximum mortgage from the property, to use funds in there property investment business elsewhere.


The 85% LTV Purchase offers experienced landlords to invest in further buy-to-let properties with a small lump sum.  


Landlords will be happy that lenders are offering the same products, in a personal name as well as a company buy-to-let.


It's incredible to see some competition in the 85% LTV Buy to Let space, at last. With 80% LTV rates starting at 2.99% and this product at 4.49% there is still some price to pay for an extra 5% mortgage.



Kensington4.29%2 Year Fix
Vida4.49%2 Year Fix
KRBS5.24%2 Year Fix
Vida5.04%5 Year Fix
Kensington4.99%5 Year Fix
KRBS5.29%5 Year Fix


NOTE 1: Correct as of 30/01/2019

NOTE 2: The best rate may not be the best mortgage once we consider other areas, such as Arrangement Fees. 


What is an 85% LTV BTL Mortgage?

85% Loan to Value (LTV) is a representation of the percentage of the Purchase Price you want to borrow. On a purchase price of £100,000, for example, a mortgage of £85,000 gives us an LTV of 85% and required a deposit of £15,000.


If you can raise a larger deposit than 15% of the Purchase Price, you can typically get better mortgage products at lower LTVs.


Mortgage Lenders consider 85% LTV as high risk giving us few options. The higher risk and fewer options are reflected in the mortgage rates and fees charged.


Can I borrow up to 85% LTV of the Property Value?

The affordability of a Buy-to-Let Mortgage is based on the rent that is achievable.  It can be difficult for landlords to reach a rental stress test of 85%.


Completing the mortgage on a Five Year Fix and/or Limited Company may open up more options. Our mortgage advisers will be able to guide you in this.


You can read our article on How is buy to let affordability assessed? 


For illustrative purposes, only on a mortgage  of £170,000 with the Kensington Product you would require £974 rent and £1090 from KRBS.


85% LTV Mortgage Criteria


85% LTV Limited Company Mortgage

The products available are for Personal Name or in a Limited Company Buy-to-Let if purchasing in a Special Purpose Vehicle (SPV). Trading Companies differ.


85% LTV HMO Mortgage

HMO Landlords can enjoy 85% LTV Mortgages. Lenders are expecting HMO Landlords to be the main utilisation of this product range, given the higher rents to pass the rental stress tests.






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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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