It may be possible, but it will depend on the lender’s criteria, the expected rental income and your wider financial profile.
If you are buying a buy-to-let property for £320,000 and putting down a £50,000 deposit, you would need a mortgage of £270,000.
That is a relatively high loan to value for the buy-to-let market, so your options are likely to be more limited than they would be with a larger deposit.
What Loan to Value Would This Be?
A £270,000 mortgage on a £320,000 property gives you a loan to value of just over 84%, which would usually be treated as 85% LTV.
In the buy-to-let market, this is towards the higher end of lending, so not every lender will be comfortable at that level. Where lenders do offer 85% LTV buy-to-let mortgages, the criteria can often be tighter.
Does My Salary Affect a Buy-to-Let Mortgage Application?
Your salary can still matter, but with a buy-to-let mortgage the expected rental income is usually the main factor.
Many lenders are more focused on whether the rent will cover the mortgage payments by a sufficient margin than on whether your salary alone could support the borrowing. That said, some lenders do have minimum income requirements, so an income of £20,000 may affect which lenders are available to you.
In other words, your salary may not stop you from getting a buy-to-let mortgage, but it could narrow the field.
How Do Lenders Work Out How Much You Can Borrow?
Most buy-to-let lenders assess affordability using the expected monthly rent.
A common approach is to require the rent to cover at least 125% of the mortgage payment, either based on the actual pay rate or a stressed rate set by the lender, often higher than the initial product rate.
This means the key question is not just the property price or deposit size, but whether the likely rental income is strong enough to support a £270,000 mortgage under the lender’s calculations.
What Are Your Buy-to-Let Mortgage Options?
With a smaller deposit and a lower personal income, lender choice becomes especially important.
Some lenders may decline purely on loan to value or minimum income, while others may be more flexible if the rental figures are strong and the rest of the case fits policy.
As an independent, whole-of-market mortgage broker, John Charcol can compare a wide range of lenders and help identify which options may be realistic based on the property, the rent and your circumstances.
Speak to John Charcol About Your Buy-to-Let Mortgage
Whether you can borrow the balance will come down to the detail of the case, particularly the expected rental income and which lenders are open to lending at 85% loan to value.
If you would like to talk through your options, speak to one of our mortgage experts on 023 8235 2300.
