Updating post from Reddit.

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QUESTION
Posted by kk88pss 3 weeks ago
How much deposit to put in?

Thanks (if you can say that about a dead parent?! to a recent inheritance I have about £150k in cash. I’ll be buying a B2L costing about £240K. Does anyone have any advice about how much deposit I should put into this? Max out and have a small mortgage? Split and buy two B2L? Rent should be around £1100 pcm.

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Posted by readthistoo 3 weeks ago
  1. Read up on BTL in 2025 and be sure you really want to do it.
  2. If proceeding do it through a company (set up for you by an accountant for a few hundred £, annual accounts will cost too)
  3. Mortgage co will determine min deposits of 30% per property, they will also want to see min rent coverage (headroom) above the mortgage amount.
  4. 2 properties are generally better than one. 3 better than 2 etc.
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Posted by Full_Atmosphere2969 3 weeks ago

What this guy said. Work out your yields and understand if it's just better to put the money into a fund and reap more for doing less.

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Posted by whichwaysouth 3 weeks ago

There is some benefit to maximising borrowing on the BTL. You can claim some tax credit for your interest cost (or the full interest cost in a LTD company), so it's more beneficial to find something else to do with the money rather than equity in the BTL.

If you have no other debt though and don't want to risk investing the money elsewhere, building up equity with a large deposit isn't the worst thing you can do.

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Posted by WorkingpeopleUK 3 weeks ago

BTL is definitely better with scale so I believe cash is king. But make sure your numbers stack up on each investment. And figure out if you prioritize income or capital growth.

I would recommend a one stop shop if you need company set up, accounts (Making Tax Digital is coming), compliance and tenant management. Would recommend a professional for first time landlord as a lot to learn and lot can go wrong. I use LandlordLab.co.uk

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Posted by Federal-Corner-2942 3 weeks ago

Buy 2 properties at £240k each. Putting in approximately £80k into each to cover stamp duty, legal etc. Buy in a Ltdco. Interest only mortgage via a good broker. Make sure the expected rental income is 125% of the monthly mortgage before you proceed with any purchase. That’s what I would do anyway.

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