5+ Year Fixed Buy-To-Let Mortgages - Best Rates | moneyfacts.co.uk

Buy To Let Mortgage Rates - 5 Year Fixed

  - We research the whole market to bring you an independent selection of the top 5 year fixed buy to let mortgage rates.
Also look at:

Compare the Best 5 Year Fixed Mortgages

Compare
Up to 3 products
side by side
Rate APRC Period Max LTV Redemption Apply Today  
 

2.17%
Reverting to 4.99%
4.3% 01/06/2023 60% To 01/06/2023 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.24%
Reverting to 4.99%
4.4% 01/06/2023 60% To 01/06/2023 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.29%
Reverting to 4.94%
4.1% 31/05/2023 60% To 31/05/2023 Details...
Speak to an Adviser
 
  Product Fee: Completion £995  

2.45%
Reverting to 4.90%
4.3% 30/04/2023 60% To 30/04/2023 Details...
Speak to an Adviser
 
  Product Fee: -  

2.49%
Reverting to 4.50%
4.0% 5 years 65% 1st 5 yrs Details...
Speak to an Adviser
 
  Product Fee: Booking £999  

2.50%
Reverting to 4.90%
4.3% 30/04/2023 75% To 30/04/2023 Details...
Speak to an Adviser
 
  Product Fee: Arrangement £1395  

2.62%
Reverting to 4.94%
4.4% 31/05/2023 75% To 31/05/2023 Details...
Speak to an Adviser
 
  Product Fee: Completion £995  

2.65%
Reverting to 4.90%
4.3% 30/04/2023 70% To 30/04/2023 Details...
Speak to an Adviser
 
  Product Fee: -  

2.77%
Reverting to 4.99%
4.2% 30/04/2023 75% To 30/04/2023 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.81%
Reverting to 4.94%
4.3% 31/05/2023 70% To 31/05/2023 Details...
Speak to an Adviser
 
  Product Fee: -  
  Sponsored Products  

3.69%
Reverting to 5.35%
4.9% 30/04/2023 60% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

4.09%
Reverting to 5.35%
5.1% 30/04/2023 75% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

3.58%
Reverting to 3.48%
3.7% 5 years 75% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Completion 2.00% Advance  
Compare
Last Updated: Sunday 25 February 2018 01:22

Moneyfacts.co.uk Best Buys show the best products chosen by our independent experts. Where we have been able to we have also provided a link for you to apply via Moneyfacts.co.uk today. Products shown with a yellow background are sponsored products.

Most Buy-To-Let mortgages are not regulated by the Financial Conduct Authority (FCA). Whether a Buy-To-Let mortgage is regulated depends on your personal circumstances. The above information assumes that FCA regulation does not apply to the mortgage products shown.

Disclaimer:
YOUR BUY-TO-LET PROPERTY MAY BE REPOSSESSED IF YOU FAIL TO KEEP UP REPAYMENTS ON ANY MORTGAGE SECURED ON IT. Written quotations are available from individual lenders. Loans are subject to status and valuation and are not available to persons under the age of 18. All rates are subject to change without notice. Please check all rates and terms with your lender or financial adviser before undertaking any borrowing.
 

On this page:

  1. What is a five-year fixed rate buy-to-let mortgage?
  2. How do five-year buy-to-let mortgages work?
  3. Why choose a five-year fixed rate buy-to-let?
  4. Can I get a five-year fixed buy-to-let mortgage?
  5. How much will a five-year buy-to-let mortgage cost?

What is a five-year fixed rate buy-to-let mortgage?

A five-year buy-to-let mortgage is a mortgage you can use to invest in a property that you are going to rent out to someone else. The rates you pay to your lender will not increase or decrease for five years. After the five years are up, you will usually be transferred to the lender’s standard variable rate.

How do five-year buy-to-let mortgages work?

Buy-to-let (BTL) is when you buy a property with the intention of renting it out to tenants. Some landlords do this as part of an investment strategy, but increasingly it is individuals changing from a residential mortgage on their own home to a buy-to-let mortgage when they move out (perhaps to move in with a partner or during a period of working abroad).

Buy-to-let mortgages are very similar to a mortgage on your home, with fixed rates and trackers available. However, you should expect higher arrangement fees with a BTL as well as a different way of assessing whether you can have the mortgage.

January 2017 saw the implementation of stricter regulations across the buy-to-let market, which means that lenders will now have to do an interest coverage ratio and/or personal income affordability test, taking into account any tax liability, before allowing borrowers to take out a buy-to-let mortgage. They also have to take into account potential interest rate rises, unless - as is the case with the mortgages on this page - the interest rate is fixed for five years or more.

It used to be the case that you had to make sure you could afford insurance, agent's fees and other maintenance costs on your own. Nowadays, lenders have to factor in the additional costs associated with running a buy-to-let property as well. So, while it may take a bit longer and a bit more paperwork, it’s certainly also a lot more secure.

Additional regulatory changes affect those landlords with four or more properties. If this is you, then beware that your entire buy-to-let portfolio will be scrutinised by the lender when you apply for another BTL mortgage.

Why choose a five-year fixed rate buy-to-let?

Five-year fixed rate mortgages can provide the security of fixed regular payments while still giving you the ability to remortgage after five years.

Fixed rates are great if you want to know exactly what you are paying for a set period. Specifically, in terms of buy-to-let they can be a great way to manage your costs. Sometimes fixed rates aren't as cheap as the best tracker rates available to landlords, but they do offer the certainty that your payments won't go up.

Can I get a five-year fixed buy-to-let mortgage?

Most mortgage lenders link whether you can afford the mortgage to the rent you are charging or propose to charge. Generally speaking, you'll need the rent to be at least 125% of the mortgage payment in order to satisfy your mortgage lender, though remember that this is a minimum - some lenders require 140% or 145% coverage especially if you are a higher or additional rate tax payer.

When you apply for a buy-to-let mortgage, your lender will perform certain checks to make sure you can afford the mortgage before they offer it to you. Their decision will be based on:

  1. Your personal finances - This will include your deposit and how much you earn each month. Your credit score will also be checked
  2. Rent - Your lender will check that the rent you intend to charge on your property is greater than your monthly load repayments. They will usually expect rent to be around 125% of your monthly payments.

How much will it cost?

This will vary from provider to provider, and will depend on your chosen loan-to-value and deposit size. However, a five-year fixed buy-to-let mortgage will usually come with higher interest rates, higher fees and will require a larger deposit (usually at least 25% of the property value, i.e. 75% LTV).

Additionally, you will pay a different amount of stamp duty compared to a regular mortgage, as well as capital gains tax. Rental income is also taxed, according to your tax banding. Read more on this in our guide on the subject. All these extra costs, including possible renovation costs, need to be taken into account.

Note that recent tax changes mean that mortgage interest can no longer be offset against income tax, which means that becoming a landlord may push you into a higher tax bracket. From 2020, you will additionally have to pay tax on your rental revenue, not just the profit. As a result, many are currently considering setting up a limited company to manage their buy-to-let property.

Remortgaging after a five-year fixed buy-to-let

With short-term fixed rates, you should also consider the costs of remortgaging your BTL property regularly. When your fixed rate period comes to an end you will be on your lender's buy-to-let standard variable rate, or possibly a tracker based variable rate. This will likely be higher than your fixed rate, so if you don't remortgage, it's important you have enough room in your budget to absorb the higher mortgage costs.

What next?

Speak to a buy-to-let mortgage adviser

Compare five-year fixed buy-to-let mortgages

Compare three-year fixed buy-to-let mortgages

Compare tracker rate buy-to-let mortgages

Compare buy-to-let mortgages for first time landlords

Read our buy-to-let mortgages guides

 
Warning as BTL lenders are feeling the squeeze
Warning as BTL lenders are feeling the squeeze

With all the regulatory changes that have been affecting the BTL market of late, you might think tha... More

BTL investment down 80% since 2015
BTL investment down 80% since 2015

Given the many changes that occurred in the BTL sector during 2017, it probably doesn’t come as such... More

Portfolio landlords facing mortgage difficulties
Portfolio landlords facing mortgage difficulties

Following last year’s regulatory changes, 70% of UK landlords with four or more buy-to-let mortgages... More

BTL affordability changes – one year on
BTL affordability changes – one year on

Last January, the buy-to-let (BTL) market was shaken up by regulatory changes which saw providers ha... More

Buy-to-let remortgaging sees boost
Buy-to-let remortgaging sees boost

Official figures show that the new regulations regarding portfolio landlords have not slowed down re... More

BTL: Have you considered the investment risks?
BTL: Have you considered the investment risks?

Buy-to-let is enjoying a bit of renaissance: more mortgages available, higher rental yields and high... More

Tax on buy-to-let property and rental income
Tax on buy-to-let property and rental income

Whether you let a single flat or 100 properties, find out the tax on buy-to-let property and income ... More

Guide to buy-to-let mortgages
Guide to buy-to-let mortgages

Buy-to-let mortgages are explained in this comprehensive guide. Find out how BTL mortgages work, if ... More

Skipton’s 5-yr BTL deal reduced
Skipton’s 5-yr BTL deal reduced

Skipton BS has reduced the rate on its five-year fixed rate buy-to-let (BTL) mortgage offer at 75% l... More

Principality launches 5yr BTL deal
Principality launches 5yr BTL deal

Principality BS has launched a new five-year fixed rate buy-to-let (BTL) mortgage deal, which offers... More

Cambridge’s 2yr BTL enters Best Buys
Cambridge’s 2yr BTL enters Best Buys

Cambridge BS has decreased the rate on its two-year fixed rate buy-to-let (BTL) mortgage, which is n... More

Post Office Money’s 2yr BTL leaps to number one
Post Office Money’s 2yr BTL leaps to number one

Post Office Money has revamped its fixed rate buy-to-let (BTL) mortgage range, which has resulted in... More

Coventry’s Outstanding buy-to-let
Coventry’s Outstanding buy-to-let

Coventry BS has reduced the rate on its fixed five-year buy-to-let mortgage deal by 0.20%, which has... More

Close