85 Buy to Let Mortgages Explained: Rates, Deposits and Costs in 2027

An 85% LTV mortgage can reduce the deposit needed to buy a rental property, but the smaller upfront payment also means taking on more borrowing. This is why understanding 85 buy to let mortgages means looking beyond the deposit and checking the mortgage rate, fees, rental income and other buying costs.For example, an 85% mortgage on a £200,000 property would require a £30,000 deposit and leave a £170,000 mortgage. But is that enough cash to buy the property, and will the rent cover the borrowing? Here is how the numbers work.What does an 85% buy-to-let mortgage mean?An 85% LTV buy-to-let mortgage allows you to borrow up to 85% of the property's value, meaning you provide the remaining 15% as a deposit.Property price15% deposit85% mortgage£200,000£30,000£170,000£250,000£37,500£212,500£300,000£45,000£255,000£400,000£60,000£340,000This is a smaller deposit than the 25% often associated with mainstream buy-to-let mortgages. Cribs Estates' buy-to-let mortgage deposit guide explains the wider deposit options landlords may encounter.What are the current 85% buy-to-let mortgage rates?85% LTV products are available from some lenders, although rates and eligibility vary.As of September 2026, Vida Homeloans publishes an 85% LTV standard BTL rate of 5.79% for a 2-year fixed product and 6.58% for a 5-year fixed product. Both products have a 2% fee, with a £195 assessment fee also applying. Using a £170,000 mortgage as an example:Item2-year fixed5-year fixedPublished rate5.79%6.58%Mortgage£170,000£170,000Approx. monthly interest*£820£9322% product fee£3,400£3,400*Illustrative interest-only calculation. It excludes other property and mortgage costs.Is a 15% deposit enough to buy a BTL property?For an additional residential property in England or Northern Ireland, higher Stamp Duty Land Tax rates can apply. Under the current rates, a £200,000 additional-property purchase would incur £11,500 in SDLT:First £125,000 at 5% = £6,250Remaining £75,000 at 7% = £5,250Total = £11,500That means the example purchase already requires:£30,000 deposit + £11,500 SDLT = £41,500You would still need to budget for legal costs, valuation or mortgage fees, refurbishment, compliance work and a reserve for repairs or periods without a tenant.How much rent do you need for an 85% LTV mortgage?Buy-to-let lenders assess whether the expected rental income provides enough cover for the mortgage interest. Each lender can use its own rental affordability test, so there is no single rent figure that guarantees approval for an 85% buy-to-let mortgage.For example, a £170,000 mortgage may look affordable based on the purchase price, but the lender will still assess the expected rent against its own criteria.Who can get an 85% buy-to-let mortgage?An 85% LTV BTL mortgage is not automatically available to every landlord. Lenders can consider:Whether you are a first-time or experienced landlordYour credit and financial positionExpected rental incomeProperty type and conditionWhether you are buying personally or through a companyYour existing property portfolio75% vs 85% LTV: which requires more cash?For a £200,000 property, the difference is easy to understand:Item75% LTV85% LTVDeposit£50,000£30,000Mortgage£150,000£170,000An 85% mortgage leaves £20,000 more of your deposit available, but you borrow £20,000 more. That can mean higher monthly interest and potentially higher borrowing costs. So the question is not simply whether you can put down 15%; it is whether the property still works after mortgage interest, management, maintenance, insurance, tax and potential void periods.How Cribs Estates helps landlordsAt Cribs Estates, we support landlords across London and South London with tenant sourcing, rent collection, maintenance, compliance and ongoing property management. Our property management services for landlords can help with the practical side of running a rental property once it is let.This is important when assessing an investment based on projected rental income. Understanding the likely rent is only the first step; you also need to account for the ongoing costs of managing the property.FAQsCan I get an 85% buy-to-let mortgage with a 15% deposit?Yes, some lenders currently offer 85% LTV BTL products, although eligibility depends on the lender, property, rental income and your circumstances.What are the current 85% buy-to-let mortgage rates?As of September 2026, Vida publishes 5.79% for a 2-year fixed 85% LTV BTL product and 6.58% for a 5-year fixed product, both with a 2% fee. Rates can change.How much rent do I need for an 85% LTV mortgage?There is no universal figure. Each lender applies its own rental affordability criteria, so the expected rent for the specific property needs to be checked.Final Thoughts85 buy to let mortgages can make a rental purchase possible with a 15% deposit, but the lower upfront requirement comes with a larger mortgage and potentially higher borrowing costs. On a £200,000 property, that means £30,000 upfront for the deposit and £170,000 borrowed, before SDLT and other purchasing costs. Book a consultation today.

Holiday Let Rules & Regulations: What UK Landlords Need to Know in 2027

Thinking about turning your property into a holiday let? Before you list it on Airbnb or another booking platform, there are several holiday let rules & regulations you need to check. Planning permission, the London 90-night rule, safety requirements, tax, business rates, insurance and upcoming registration rules can all affect whether and how you can operate.For Cribs Estates landlords, London is especially important. The rules for short-term letting in the capital are not the same as simply renting a property to a long-term tenant, so it is worth checking the position before accepting your first booking.Can you legally use your property as a holiday let?The first question is not how much you can earn. It is whether you are actually allowed to use the property for short-term stays.Before advertising, check:Planning: Your local council decides whether planning permission is needed for the property's use.Mortgage: Your mortgage provider may have restrictions on short-term or holiday letting.Lease: If the property is leasehold, check whether your lease or freeholder limits short-term letting.Insurance: Your existing home or landlord policy may not cover paying guests.In London, City Hall specifically advises property owners to check permissions with their landlord or freeholder, mortgage provider and insurer before starting short-term letting.What is the 90-night rule for holiday lets in London?The 90-day holiday let rule is one of the most important regulations for London landlords.If you use a residential property in London as short-term accommodation, you can generally do so for a maximum of 90 nights in a calendar year without planning permission, provided the required Council Tax condition is met. Going beyond 90 nights requires planning permission from the relevant local council.The limit runs from 1 January to 31 December, so it is not a rolling 90-day allowance.What holiday let safety rules apply?Holiday accommodation must be safe for paying guests. Current government guidance for England covers several areas that landlords need to consider, including:Fire safetyGas and carbon monoxide safetyElectrical safetyEnergy Performance Certificates (where required)Suitable insuranceTV and music licensing where applicableThe government recommends dedicated holiday-let insurance, public liability cover and building and contents insurance suitable for short-term letting. It also directs holiday-let owners to the relevant fire, gas and electrical safety guidance.Rather than assuming that your normal landlord checks are enough, check the requirements for the property and the type of accommodation you are providing.See the current GOV.UK holiday home rules and regulationsDo holiday lets pay Council Tax or business rates?Your tax position and your property's business-rates position are separate questions.In England, a self-catering property may be assessed for business rates rather than Council Tax if it meets specific conditions. The property must:Be available for commercial letting for at least 140 nights in the previous 12 monthsHave actually been let for at least 70 nights in the previous 12 monthsBe intended to be available for commercial letting for at least 140 nights in the next 12 monthsBe let for short periods of 28 nights or lessIf you only let one property in England and its rateable value is below £15,000, you may also qualify for Small Business Rate Relief, subject to the applicable rules.These figures should not be confused with the old Furnished Holiday Let tax tests.Check the GOV.UK business rates rules for self-catering accommodationWhat happened to the Furnished Holiday Let tax rules?This is one area where older holiday-let articles can give landlords the wrong impression.The government abolished the Furnished Holiday Let (FHL) tax regime on 6 April 2025. From the 2025–26 tax year, income from short-term holiday accommodation is taxed under the usual residential landlord rules, and the previous FHL tax reliefs no longer apply.So if you are reading an older article that tells you to meet the old FHL tax thresholds to receive special tax treatment, check its publication date carefully.The rules for business rates are a separate matter, which is why the 140-night and 70-night figures above can still be relevant.Do holiday lets need a licence or registration in England?England is moving towards a mandatory national registration scheme for short-term lets, but the current GOV.UK guidance says the scheme is expected to begin in 2026 and is not yet in force.That means landlords should not assume that an England-wide holiday-let registration requirement is already operating.Local requirements can still apply, however. The government advises owners to contact their local authority to check planning requirements, how registration will work in their area, required documentation and any additional local rules.The position is also different across the UK. Scotland already operates a short-term-let licensing system, for example, so landlords should check the rules for the specific nation where their property is located.What happens if you get the rules wrong?The biggest risk is assuming that a property can be used as a holiday let simply because other properties nearby are doing it.In London, properties used for short-term letting beyond the permitted 90 nights without the required planning permission can face planning enforcement action from the local council.You could also run into problems with your mortgage, lease, insurance or safety obligations if you have not checked them before starting.How Cribs Estates can help with short letsUnderstanding holiday let rules & regulations before you start can save you from expensive problems later. At Cribs Estates, we help landlords across London and South West London with property management and letting support. We have over 12 years of experience and support landlords with legal requirements, marketing, property management, maintenance and tenant management.Our short-let management service can also support landlords with property marketing, guest communication, bookings, maintenance, cleaning and compliance.If you are considering short-term letting but do not want to manage every part yourself, our short let management service can help take care of the day-to-day work.

How Much Do Holiday Letting Agents Charge in 2026?

Anyone considering professional management for a holiday let would ask: how much do holiday letting agents charge? In the UK, published rates commonly fall around 15% to 25% of booking revenue plus VAT for full-service holiday letting.The percentage alone does not tell you what you will actually pay. Some agents charge on gross booking revenue, while others calculate their fee after platform charges. Cleaning, maintenance, photography, onboarding and other services may also sit outside the headline management fee. Here is what to check before comparing quotes.What percentage do holiday letting agents charge?Holiday letting agents commonly charge a percentage of the income generated by your property rather than a fixed monthly fee. Published UK guidance puts holiday letting agent commissions at around 15% to 25% per booking, with the final rate depending on the service and provider. For example, on £20,000 of annual booking revenue:Management feeFee before VATFee including 20% VAT*15%£3,000£3,60020%£4,000£4,80025%£5,000£6,000*Illustrative calculation assuming VAT is charged on the management fee.So a 15% quote and a 25% quote can represent a significant difference over a year. However, you also need to know what that percentage applies to and what services are included.Gross or net booking revenue: which one matters?A gross booking value is the amount generated before other deductions. A net booking value is the amount remaining after specified costs, such as a platform fee, have been deducted.Suppose a booking generates £1,000 and the management company charges 20% on the gross amount.Booking revenue: £1,000Management fee: £200VAT on the management fee: £40Amount remaining: £760Now compare that with an agent charging 20% on a lower net figure. The actual cost can be different even though both companies advertise “20% management”.Ask this before comparing percentages: Is your management fee calculated on gross or net booking revenue? Without that answer, two percentage quotes are not necessarily comparable.Does Airbnb charge a separate fee?Yes. Your holiday letting agent's management fee and Airbnb's platform fee are separate costs. Airbnb has changed its fee structure in 2026. For the relevant UK host model, Airbnb says it is moving to a single 15.5% service fee paid by hosts, with the change applying to UK hosts from June 2026 in its published rollout.That means you should not look at an agent's 15%, 20% or 25% management fee in isolation if your bookings come through Airbnb.For example, Airbnb's own illustration shows that a £115 guest price can result in a £97 host payout after its 15.5% service fee, before considering other costs.What other costs can come with holiday let management?The management percentage may not cover every cost involved in running your property. Before signing a contract, check whether the following are included:Cleaning and linen: Often charged separately per stay.Maintenance: Contractor and repair costs may be passed to the landlord.Emergency callouts: Check whether there are separate attendance charges.Photography: Some companies include professional photography; others charge separately.Onboarding or setup: Some agents charge an initial setup fee.Listing fees: Some providers charge annual or listing-related fees.Guest services: Check whether check-ins, guest communication, and key management are included.Compliance: Confirm whether safety checks and administration are included or charged separately.Published market guidance also highlights setup and listing charges as potential additional costs, so always ask for the full fee schedule, not just the headline commission.What should a holiday letting management fee include?A full-service arrangement can cover much more than putting your property on Airbnb. Depending on the company, management can include:Creating and managing property listingsHandling booking enquiriesGuest communicationCheck-in and check-out arrangementsManaging booking calendarsPricing and availability managementCleaning and changeover coordinationMaintenance coordinationProperty inspectionsHandling guest issuesManaging reviews and listing performanceThe important point is to compare service scope alongside price.A 12% management fee with limited involvement may cost you less upfront but leave you responsible for several tasks. A higher percentage may include much more day-to-day management.Are holiday letting agent fees tax deductible?Management and letting agent fees can generally be allowable expenses when calculating taxable property income, provided the relevant tax rules are met. HMRC lists letting agent and management fees among expenses that can be deducted from rental income.However, the tax position for holiday lets has changed. The special Furnished Holiday Lettings (FHL) tax regime ended in April 2025, meaning qualifying holiday lets are now subject to the normal property income rules rather than the former FHL regime.Is paying a holiday letting agent worth it?That depends on what you are trying to achieve. Self-managing means keeping the management fee, but you take responsibility for marketing, enquiries, bookings, guest communication, cleaning, maintenance and the problems that can arise between stays.Professional management means giving up part of the booking revenue in exchange for having someone else handle those responsibilities.The right comparison is therefore not: “Can I find an agent charging less?”It is: “What will I keep after all costs, and how much work will I still have to do?”For a landlord who lives far from the property, has several properties or does not want to deal with guests and maintenance, the value of professional management can be greater than the percentage alone suggests.How to compare holiday letting agentsBefore choosing an agent, ask these questions:What percentage do you charge?Is the fee based on gross or net booking revenue?Is VAT added?What exactly is included?Are cleaning and linen charged separately?Are maintenance and emergency callouts extra?Is there an onboarding or setup fee?Which booking platforms do you use?How are bookings, guest communication, and check-ins handled?What happens if I want to end the management agreement?Get the answers in writing so you can compare like-for-like quotes.How Cribs Estates can help with holiday letsCribs Estates supports landlords with property marketing, guest management, compliance and maintenance as part of our wider property management services. Our experience across London means we can help landlords approach short-term letting with the requirements of the local market in mind. We also work with landlords considering different rental strategies, including shorter and medium-term arrangements. Our London short-term letting service covers flexible 1-, 2- and 6-month options, with support for property marketing, tenant matching, paperwork and move-in and move-out processes. Want to know how much do holiday letting agents charge? Contact us today.

Airbnb & Holiday Let Guide for UK Landlords: What to Check Before You Start

Running an Airbnb or holiday let can give landlords more flexibility over how they use a property. But the nightly rate is only one part of the decision.Before listing a property, check the planning position, tax rules, insurance, safety requirements, running costs and any restrictions attached to the property. The rules have also changed in recent years, so older holiday-let advice can now be misleading.For landlords in London, there is another important consideration. Short-term holiday letting has specific planning rules, including the 90-night limit in Greater London.Is Your Property Suitable for a Holiday Let?The right property for a holiday let depends on its location, condition and likely demand.Look at how close it is to transport links, places of interest, business districts and local amenities. The property also needs to work for short stays, which often means good furnishing, reliable Wi-Fi, practical kitchen facilities and a layout suitable for guests.Before spending money on furniture or marketing, check whether your lease, mortgage or insurance allows short-term letting. A property might look suitable for Airbnb, but restrictions in the lease or finance agreement can prevent you from using it this way.It is also worth comparing the property with nearby short-term and long-term rental options. A holiday let is not automatically more profitable. Your calculation needs to account for occupancy, running costs, maintenance and the time required to manage bookings.What Rules Apply to Airbnb and Holiday Lets in 2026?Planning and tax rules are two areas where landlords need current information.In England, planning permission for a self-catering holiday home depends on how the property is used and the decision of the local planning authority. The government advises owners to contact their local council to confirm whether permission is required.London has an additional restriction. A residential property in Greater London can generally be used as temporary sleeping accommodation for up to 90 nights in a calendar year without planning permission, subject to the relevant conditions. More than 90 nights requires planning permission.England is also introducing a mandatory national registration scheme for short-term lets. The government states the scheme is expected to begin in 2026, but it is not yet in force.Safety requirements also matter. Depending on the property and setup, landlords need to consider fire safety, gas and carbon monoxide safety, electrical safety, EPC requirements and suitable insurance. GOV.UK recommends dedicated holiday-let insurance, public liability cover and building and contents cover suitable for short-term letting.For the latest requirements, check the official GOV.UK guidance for self-catering holiday homes in England before listing your property.What Does a Holiday Let Really Cost?A holiday let needs more than a booking price to make financial sense. Your costs might include:Furniture and initial property preparationUtilities and internetCleaning and linenRepairs and maintenanceInsuranceBooking platform feesMarketing and photographyProperty managementPeriods without guestsCouncil tax or business rates, depending on the propertyBusiness rates have specific qualifying conditions in England. A self-catering property generally needs to be available for commercial letting for at least 140 nights and actually let for at least 70 nights in the previous 12 months, with further conditions applying for the following year.Tax treatment has also changed. The Furnished Holiday Lettings tax regime was abolished from 6 April 2025 for Income Tax and Capital Gains Tax purposes. From the 2025 to 2026 tax year, income from short-term holiday accommodation is taxed under the usual residential property rules.For current tax guidance, use the HMRC guidance on rental income and speak to a qualified tax adviser about your own circumstances.What Does Running an Airbnb Actually Involve?Landlords need to respond to enquiries, manage bookings, communicate with guests, organise cleaning, deal with check-ins and check-outs, monitor the property's condition and arrange repairs when problems arise.Guest expectations also matter. A slow response to a maintenance issue or a property that is not prepared properly between stays can affect the guest experience and future bookings.This workload becomes harder when you live away from the property or have several properties to manage. It is worth considering the time involved before deciding to manage everything yourself.When Should a Landlord Consider Professional Management?Professional property management becomes useful when the practical work starts taking too much time or when you do not live close enough to deal with issues yourself.Cribs Estates works with landlords across South West London and Surrey and provides property management covering maintenance, repairs, inspections, compliance and tenant communication. The company also works with individual landlords and larger property portfolios.For landlords considering short-term accommodation, this wider property experience can help with the ongoing care and management of the property.Explore Cribs Estates' property management services for London landlords or read its guide to short-term lets in London for more information on shorter rental periods.Airbnb or Traditional Letting?A holiday let offers more flexibility and the opportunity to charge for individual stays. It also brings more guest turnover, cleaning, furnishing and day-to-day management.A traditional tenancy usually involves fewer tenant changes and less frequent property preparation, but it also means committing the property to a longer rental arrangement.Compare both options using your actual property costs, local demand, expected occupancy and the amount of time you want to spend managing the property.Quick Checks Before You List Your PropertyBefore putting your property on Airbnb or another holiday-let platform:Check planning, lease, mortgage and insurance restrictions.Confirm the safety requirements that apply to your property.Understand the current tax position.Check whether council tax or business rates apply.Calculate your full operating costs.Decide whether you will manage bookings, guests and property issues yourself.Frequently Asked QuestionsIs Airbnb income taxable in the UK?Yes. Income from short-term holiday accommodation falls under the usual property income rules following the abolition of the Furnished Holiday Lettings tax regime in 2025.What is the 90-night Airbnb rule in London?In Greater London, residential properties can generally be used for short-term letting for up to 90 nights in a calendar year without planning permission, subject to the applicable conditions. More than 90 nights requires planning permission.Do holiday lets pay council tax or business rates?It depends on whether the property meets the business-rates criteria. In England, qualifying self-catering holiday accommodation can fall under business rates rather than council tax.Has the Furnished Holiday Let tax regime been abolished?Yes. The FHL regime ended from April 2025. Short-term holiday accommodation now falls under the usual residential property tax rules