Deposit requirements for buy-to-let mortgages are far higher than residential ones, as they are considered a riskier investment.
The standard loan-to-value (LTV) for BTL is around 75-80%, which translates to 20-25% deposit – although some providers may be more generous for the right applicant. Likewise, if you pose a greater risk in other areas (e.g. bad credit or low rental yield), a lender may have higher deposit requirements to balance out the risk.
Generally speaking, the more deposit you’re able to put down, the greater the lender pool and the more favourable the interest rates you’re likely to be offered.