The best buy-to-let mortgages


Updated on 28 March 2018 | 7 Comments

Landlords can breathe a sigh of relief at last – buy-to-let mortgages rates are coming down. We look at some of the top deals and how they compare to last year.

Looking for a buy-to-let mortgage? It's a good time to get one as providers are slashing rates in an emerging price war.

Most notably, Nationwide's buy-to-let arm The Mortgage Works has launched the first ever five-year fixed-rate mortgage for landlords below 2%.

The drop in rates will be a significant boost for hard-pressed landlords looking to cut their monthly costs.

As you might expect, this new 1.99% deal has pretty strict requirements: you'll need to stump up 50% deposit to qualify and it carries a chunky £1,995 fee.

Rates for the zero-fee option start at 2.39%.  

Here, we examine some of the top fixed-rate and tracker buy-to-let mortgage deals currently available to landlords. We've also compared them to the best rates available last year to give you a better idea of how competitive these new rates are.

Note, the tables below only look at deals available to people with a 60% LTV, which is why the 1.99% deal mentioned above isn't included in the five-year table.

Best two-year fixed rate buy-to-let mortgages*

First, let’s look at the two-year fixed-rate mortgages.

As the fixed period is relatively short, these are the lowest rates on the loveMONEY mortgage comparison service.

While the rates no doubt look generous, you'll have to pay a hefty fee up front for all of them so make sure you factor this in before applying

As the two tables below show, rates have remained largely unchanged over the last year.

March 2018

Lender

LTV

Interest rate

Mortgage fee

Platform (Intermediary)

60%

1.39%

£1,999

Platform (Intermediary)

65%

1.64%

£1,999

Virgin Money Intermediary

70%

1.73%

£2,183

Virgin Money Intermediary

75%

1.75%

£2,183

The Mortgage Works

80%

2.99%

2% of amount borrowed (£3,200 on £160,000 mortgage)

May 2017

two year fixed buy to let mortgage rates may 2017

Compare two-year fixed-rate buy-to-let mortgages on loveMONEY

If you're looking to avoid those astronomical fees, we’ve rounded up the best two-year fixed-rate mortgages with no fees. 

On the comparisons below you can see these fee-free products are notably cheaper than they were last May so locking in now would save you a fair whack of cash.

March 2018

Lender

LTV

Interest rate

Mortgage fee

Platform (Intermediary)

60%

1.89%

£0

Platform (Intermediary)

65%

2.04%

£0

Platform (Intermediary)

70%

2.19%

£0

Platform (Intermediary)

75%

2.24%

£0

The Mortgage Works

80%

3.99%

£0

May 2017

buy to let fixed rate mortgage 2 years low fee

Best five-year fixed-rate buy-to-let mortgages*

If you want to go for a longer-term fixed rate deal, then you may prefer a five-year fixed-rate deal.

While you enjoy that security for longer, you may have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.

Here are the lowest rate deals around (charges based on a property worth £200,000).

March 2018

Lender

LTV

Interest rate

Fee

Virgin Money Intermediary

60%

2.12%

£1,995

The Coventry for Intermediaries

65%

2.39%

£1,999

Leeds Building Society

70%

2.59%

£1,999

Virgin Money Intermediary

75%

2.64%

£1,995

The Mortgage Works

80%

3.59%

2% of amount borrowed (£3,200 on £160,000 mortgage)

May 2017

may 2017 buy to let fixed rate mortgage

Compare five-year fixed-rate buy-to-let mortgages on loveMONEY

And now let’s look at the best deals with fees under £500 on a property worth £200,000.

March 2018

Lender

LTV

Interest rate

Fee

NatWest Intermediary Solutions

60%

2.37%

£0

Platform (Intermediary)

65%

2.74%

£0

Platform (Intermediary)

70%

2.84%

£0

Platform (Intermediary)

75%

2.89%

£0

May 2017

Compare five-year fixed-rate buy-to-let mortgages on loveMONEY

The best 10-year fixed rate buy-to-let mortgages

Some providers will allow you to fix your buy-to-let mortgage for up to 10 years.

Again while you get security for longer, you usually have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.

There are fewer long lasting fixed rate deals like this on the market. But here are the lowest rates around with charges based on a property worth £200,000.

March 2018

Lender

LTV

Interest rate

Fee

The Coventry for Intermediaries

65%

2.95%

£1,999

The Mortgage Works

75%

4.99%

£995

May 2017

buy to let fixed rate mortgage 10 year

Tracker buy-to-let mortgages

With a tracker mortgage your monthly repayments may go up or down, usually depending on what’s happening with the Bank of England Base Rate.

However, some lenders track other rates – often their own “base rate” or another variable rate such as London Interbank Offered Rate (LIBOR).

Most trackers are for two years, but there a handful of products available for the entire term of the mortgage.

Best two-year buy-to-let tracker mortgages

Here are the best two-year tracker rates right now.

March 2018

Lender

LTV

Interest rate

Fee

Platform (Intermediary)

60%

1.49% (0.99% + BoE Base Rate (capped at 0.5%))

£1,999

The Mortgage Works

65%

1.64% (1.14% + BoE Base Rate)

£1,995

Platform (Intermediary)

70%

1.89% (1.39% + BoE Base Rate (capped at 0.5%))

£1,999

Platform (Intermediary)

75%

1.94% (1.44% + BoE Base Rate (capped at 0.5%)

£1,999

May 2017

buy to let tracker mortgage may 2017

Compare tracker buy-to-let mortgages on loveMONEY

Rates on the decrease

As you can see, most fixed-rate mortgages have either gone down or stayed the same. It's a slightly different story with trackers, whose rates have actually gone up a little.

So don't be put off if you want to be a landlord. Take a look at How to become a buy-to-let landlord for some tips. 

This article is regularly updated

*Our calculations only look at deals available to people with a 60% LTV, which is why the 1.99% deal mentioned above isn't included in the five-year table.

More on being a landlord:

The lessons I've learned as an accidental landlord

UK landlords: how to cut your buy-to-let costs

Buy-to-let: how to avoid troublesome tenants

Buy-to-let: UK property investment hotspots in 2017

Landlords: the insurance you need

How to become a buy-to-let landlord

 

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