Compare Buy to Let Mortgages | moneyfacts.co.uk

Best Buy-to-Let Mortgage Rates

  - Buy-to-let mortgage comparison made easy. Find the best buy-to-let mortgages using our Best Buy charts, which feature the lowest BTL mortgage rates available

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Compare the Best Buy To Let Mortgages

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Up to 3 products
side by side
Rate APRC Mortgage Type Period Max LTV Redemption Apply Today  
 
  2 Year Fixed  

1.58%
Reverting to 4.99%
4.5% Fixed 29/02/2020 60% To 29/02/2020 Details...
Go to Site
 
  Product Fee: Arrangement £1495  

1.69%
Reverting to 4.99%
4.7% Fixed 01/04/2020 60% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

1.84%
Reverting to 4.99%
4.8% Fixed 01/04/2020 75% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.03%
Reverting to 4.99%
4.8% Fixed 01/04/2020 70% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.04%
Reverting to 4.99%
4.8% Fixed 01/04/2020 75% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

1.53%
Reverting to 4.99%
4.4% Fixed 29/02/2020 60% To 29/02/2020 Details...
Go to Site
 
  Product Fee: Arrangement £1495  

2.12%
Reverting to 4.49%
4.3% Fixed 30/04/2020 75% To 30/04/2020 Details...
Go to Site
 
  Product Fee: Booking £995  
  Sponsored Products  

2.99%
Reverting to 5.35%
5.1% Fixed 31/03/2020 60% 1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

2.99%
Reverting to 5.35%
5.1% Fixed 31/03/2020 60% 1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

3.88%
Reverting to 4.98%
5.1% Fixed 2 years 70% 1st 2 yrs Details...
Go to Site
 
  Product Fee: Completion £1999  
   
  3 Year Fixed  

1.69%
Reverting to 4.99%
4.6% Fixed 01/04/2021 60% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.03%
Reverting to 4.99%
4.6% Fixed 01/04/2021 60% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.25%
Reverting to 4.99%
4.7% Fixed 01/04/2021 70% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.35%
Reverting to 4.99%
4.7% Fixed 01/04/2021 75% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.59%
Reverting to 4.99%
4.7% Fixed 01/04/2021 75% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.49%
Reverting to 4.99%
4.7% Fixed 01/04/2021 70% To 01/04/2021 Details...
Go to Site
 
  Product Fee: Arrangement £995  
  Sponsored Products  

3.48%
Reverting to 4.98%
5.0% Fixed 3 years 70% 1st 3 yrs Details...
Go to Site
 
  Product Fee: Completion 2.00% Advance  
   
  5 Year Fixed  

2.19%
Reverting to 4.99%
4.3% Fixed 01/04/2023 60% To 01/04/2023 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.29%
Reverting to 4.99%
4.4% Fixed 01/04/2023 60% To 01/04/2023 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.90%
Reverting to 4.99%
4.6% Fixed 01/04/2023 75% To 01/04/2023 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.78%
Reverting to 4.99%
4.5% Fixed 01/04/2023 75% To 01/04/2023 Details...
Go to Site
 
  Product Fee: Arrangement £1995  

2.59%
Reverting to 5.00%
4.4% Fixed 28/02/2023 65% To 28/02/2023 Details...
Go to Site
 
  Product Fee: Booking £1999  
  Sponsored Products  

3.69%
Reverting to 5.35%
4.9% Fixed 31/03/2023 60% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

4.09%
Reverting to 5.35%
5.1% Fixed 31/03/2023 75% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

3.58%
Reverting to 3.48%
3.7% Fixed 5 years 75% 1st 5 yrs Details...
Go to Site
 
  Product Fee: Completion 2.00% Advance  
   
  Trackers  

1.79%
Reverting to 4.99%
4.7% Variable 01/04/2020 60% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.14%
Reverting to 4.99%
4.8% Variable 01/04/2020 70% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.24%
Reverting to 4.99%
4.8% Variable 01/04/2020 75% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.19%
Reverting to 5.00%
4.8% Variable 2 years 75% None Details...
Go to Site
 
  Product Fee: Booking £1999  

2.69%
Reverting to 5.00%
4.7% Variable 2 years 75% None Details...
Go to Site
 
  Product Fee: Booking £349  

2.34%
Reverting to 5.00%
4.7% Variable 2 years 60% None Details...
Go to Site
 
  Product Fee: Booking £349  
  Sponsored Products  

5.35%
 for Term
5.6% Variable Term 80% None Details...
Go to Site
 
  Product Fee: Arrangement £999  

4.99%
 for Term
5.1% Variable Term 75% None Details...
Go to Site
 
  Product Fee: -  

3.53%
 for Term
3.7% Variable Term 75% 1st 3 yrs Details...
Go to Site
 
  Product Fee: Completion 2.00% Advance  
   
  First Time Landlord  

1.58%
Reverting to 4.99%
4.5% Fixed 29/02/2020 60% To 29/02/2020 Details...
Go to Site
 
  Product Fee: Arrangement £1495  

2.03%
Reverting to 4.99%
4.8% Fixed 01/04/2020 70% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.04%
Reverting to 4.99%
4.8% Fixed 01/04/2020 75% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.24%
Reverting to 4.99%
4.8% Variable 01/04/2020 75% To 01/04/2020 Details...
Go to Site
 
  Product Fee: Arrangement £995  

2.59%
Reverting to 5.00%
4.4% Fixed 28/02/2023 65% To 28/02/2023 Details...
Go to Site
 
  Product Fee: Booking £1999  
  Sponsored Products  

3.89%
Reverting to 5.35%
5.3% Fixed 31/03/2020 75% 1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  

3.89%
Reverting to 5.35%
5.3% Fixed 31/03/2020 75% 1st 2 yrs Details...
Go to Site
 
  Product Fee: Arrangement £999  
Compare
Last Updated: Friday 15 December 2017 01:22

Our team of experts have chosen those mortgages they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst 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.
 

Guide to buy-to-let mortgages

If you're a landlord, chances are you're going to need a buy-to-let mortgage. But just what are buy-to-let (BTL) mortgages, and how can you make sure you find the best deal? Well, our Best Buy tables provide an overview of the top BTL mortgages available, or you can use our buy to let mortgage calculator to find those deals that meet your individual needs, simply by inputting a few details and then going through your personalised list of the best buy-to-let mortgages that suit.

However, let's start with the basics: read on for an explanation of everything you need to know about this specialist sector of the mortgage market.

What is a buy-to-let mortgage, and why might you consider one?

A buy-to-let mortgage is a home loan that's specifically designed for landlords who rent out a property. In essence, it's similar to a residential mortgage, in that you'll need a stellar credit rating together with a suitable deposit, but you're getting the mortgage on the assumption that you're not going to be living in the property yourself.

You won't be able to take out a standard residential mortgage if you're buying a property with the sole intention of renting it out, and even if you're an accidental landlord (for example, if you became a landlord simply because you were unable to sell your home after moving in with your partner, etc.), you'll need a suitable loan. In the case of the latter, some mortgage lenders may allow you to swap your residential mortgage to a buy-to-let arrangement, but generally speaking, you'll need a specialist product from the outset.

There are a few key differences you'll need to be aware of between residential mortgages and mortgages for buy to let:

  • The income assessment is based on the rental income of your property You'll still need to meet strict affordability criteria, but BTL mortgages are assessed primarily on your rental income, which must typically be at least 125% of the mortgage payment, although up to 145% is not uncommon, especially for landlords who are higher rate taxpayers. So, if you've got a monthly mortgage payment of £800, you'll need to be charging rent in the region of £1,000-£1,200 per month. Some lenders also have a minimum income requirement as well, thereby giving them assurance that you could meet mortgage payments during untenanted periods.

  • Interest rates are often higher Even the best buy-to-let mortgages will often have higher interest rates than those you can get on similar deals for your own home, so it's important to factor this into your costing calculations.

  • Deposit requirements are often higher, too. The amount of money that you'll need to put up to secure a buy-to-let mortgage can be far higher than for a residential alternative. While for a mortgage on your own home you might be able to access a deal with a deposit of just 10% or even 5%, these mortgages typically require an absolute minimum of 20 or 25%, with the very top rates reserved for borrowers who can stump up a deposit of 40% or more.

  • High fees. Buy-to-let mortgages generally charge higher arrangement fees than their residential counterparts, which can add up to thousands of pounds. This means it's well worth shopping around and using a buy-to-let mortgage calculator, as well as enlisting the help of a good mortgage adviser. It can often be the case that a mortgage with a lower rate can work out more expensive if the arrangement fees are high, so performing detailed buy-to-let mortgage comparisons is a must.

  • Age restrictions are often less strict. You'll often be able to secure a buy-to-let mortgage beyond typical retirement age, for the simple reason that the assessment is based on the rental income you receive. However, this makes void periods more of a concern, particularly if you have limited additional income after giving up work, so it may be worth looking to a fully managed solution for your property portfolio (again, speaking to a specialist adviser is highly recommended).

  • There'll be additional eligibility criteria. Bear in mind that, while age restrictions can be less strict at the upper end of the scale, there may be tougher restrictions in terms of minimum ages - some lenders won't offer buy-to-let deals to anyone under the age of 25, for example, and some won't let you take out such a loan if it's your first ever property purchase. You may need to have a residential mortgage on your own home first, to show you're a trustworthy borrower.

  • Interest-only mortgages are more common. Unlike in the residential mortgage market, interest-only mortgages are still readily available in the buy-to-let market, as it's assumed you're using the property solely as an investment and will repay the capital of the loan when the property is eventually sold. However, this is still a risky undertaking, as there's no guarantee of eventual house prices.

How to find the best buy-to-let mortgage deal

As with all mortgage dealings, finding the right option all comes down to performing a thorough buy to let mortgage comparison. This means you'll need to take everything mentioned above into account, from the deposit you have and the resulting loan-to-value (LTV) you're looking for, to the rental income requirements, fees and age restrictions. The best buy to let rates you can find will of course be a huge driver of your decision, but make sure to not be swayed by rate alone - as discussed above, the benefits of a lower rate may be outweighed by an extortionate fee, so you'll need to do your sums.

You'll want to look at the additional features of a buy-to-let mortgage, too, such as the incentives offered, early repayment charges and whether there's the facility to make overpayments (or similar). These incentives and additional flexibility can often be appealing, but again, make sure it works out as the best value option in the long run.

Start the process by using our Best Buys to get an idea of the best buy- to -let mortgages available, or perform a more personal comparison by using our buy to let mortgage calculator. This allows you to search for deals based on criteria such as the value of your property, the amount of loan required, your preferred mortgage term and whether you’re looking for a fixed or variable rate, presenting you with suitable options accordingly.

Buy-to-let mortgage comparison quick guide:

  • Make sure you know the value of the property you're buying (or remortgaging - you'll be able to find specialist buy-to-let remortgage deals as well as those for purchase), together with the value of your deposit.

  • Know the market - make sure your rental income can more than cover the mortgage payments. Consider looking into fully managed solutions if you have no other income, as these arrangements could guarantee your monthly rent, even in the case of void periods.

  • When looking for buy-to-let mortgages, consider everything from the mortgage rate to the fees, flexibility and additional incentives. Make sure to do a true cost calculation so you know it's the best value.

  • Bear in mind the full APRC (Annual Percentage Rate of Charge), rather than looking at initial BTL mortgage rates in isolation. Many lenders offer low rates for an initial period, but the revert rate could be incredibly high, so make sure to look at the full APRC for truly effective comparison.

  • Consider whether you want a fixed rate buy-to-let mortgage, which will give you repayment certainty for the duration of the term, or if you'd rather have the flexibility of a tracker/variable rate deal. These can sometimes be cheaper and there's the chance that the rate (and therefore your repayments) could fall, but there's also the chance that it'll rise, so make sure you're prepared for either eventuality.

  • Interest-only or full repayment? This could be one of the biggest decisions you make in terms of your mortgage, and it'll depend on your eventual goals - is your sole exit strategy to sell the property in a few years' or decades' time and use the proceeds to repay the loan? If so, what if house prices don't rise as much as you're hoping? Make sure to consider all the options and seek suitable support.

  • Get the right advice. Buy to let can be a significant undertaking, particularly with the latest tax changes impacting the market (which we discuss further below), so it's vital to get the right advice so you're confident in making the right decision.

  • Thoroughly compare all mortgages for landlords - use our Best Buys and buy to let mortgage calculator to get started, and ensure you're getting the best buy to let mortgage deals possible.

Buy to let as an investment

Property has long been thought of as a decent investment, particularly when compared to saving in cash, and it can even give stock market investment a run for its money. This view has been fuelled by continued house price rises in recent years, which have seen the value of bricks and mortar significantly enhanced.

It's an investment for the long-term, and but when you consider the fact that returns on cash savings are essentially negative once inflation is taken into account, it's easy to see why it's so popular. For many, bricks and mortar is far more secure than investing in the stock market, too, as there's less volatility and you’ve got a tangible asset in your portfolio.

However, it's important to remember that, like any investment, returns from buy-to-let aren't guaranteed. There's a slim but ever-present chance that your property could go down in value, not to mention the fact that if you don't enjoy 100% tenancy, your profits could be compromised as you'd need to make the mortgage repayments out of your own pocket.

Then there are the various insurance payments and additional costs you need to consider, and that's before we get to the tax changes that have impacted the buy-to-let market of late, all of which are making it more difficult for all but unmortgaged landlords to make a profit. Find out more about the investment risks of buy-to-let by reading our guide.

Buy-to-let tax changes

The Government has begun to scale back buy-to-let mortgage tax relief, which means that by 2020, all landlords will be required to pay tax on their full rental income (net of allowable expenses), less a 20% tax credit for interest costs, rather than on their profit.

As a result, the profitability of buy-to-let arrangements has been compromised, and many landlords are questioning the affordability of remaining in the sector. It also means that many are considering incorporating to avoid these higher costs - by becoming a limited company, landlords who are structured as such will face a flat rate of corporation tax, which for some could prove beneficial. You'll of course need to take specialist advice, but you can find out more about the buy-to-let tax relief changes and how to incorporate - together with how to find the necessary support - here.

The higher costs impacting the sector also means it's even more important to find the best buy-to-let deals possible. Use our independent charts to compare buy-to-let mortgages (or buy-to-let remortgages, depending on your circumstances), and make sure to consider everything from its rating to any extra fees involved. That way, you can be sure that you're not only getting the best buy-to-let mortgage rates, but that its true cost will mean you can buy properties with confidence.

Buy-to-let mortgage advice

Mortgage advice can be particularly important in the context of buy-to-let, and even more so if you're considering incorporating. An experienced adviser will have the market knowledge needed to decide the best course of action and help you find the most suitable buy-to-let mortgage, taking your individual requirements into account. We've partnered with a team of friendly and experienced mortgage advisers who are on-hand to help with your decision; simply request a call-back and someone will be in touch shortly. Our mortgage advice service is available if you need to borrow from £50,000 up to 80% of your property's value.

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

Buy-to-let mortgage rates rise by record amount
Buy-to-let mortgage rates rise by record amount

This year has been a trying one for the buy-to-let (BTL) mortgage market, and rates have suffered - ... More

Rules see buy-to-let rates rise from record lows
Rules see buy-to-let rates rise from record lows

The buy-to-let (BTL) market has been hit from all sides recently with tougher affordability rules an... More

Buy-to-let market pauses for breath amid new rules
Buy-to-let market pauses for breath amid new rules

The buy-to-let market has put up with a lot recently, and it’s just had another rule change to adapt... More

Buy to let rule changes – what do they mean?
Buy to let rule changes – what do they mean?

New buy-to-let (BTL) rules are set to come into force this weekend, which will see stricter lending ... 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

The moneyfacts.co.uk guide to buy-to-let mortgages
The moneyfacts.co.uk guide to buy-to-let mortgages

Whether you’re a newbie to buy-to-let, or a seasoned investor, one of the most important things when... 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

TSB’s new 3yr BTL mortgage enters charts
TSB’s new 3yr BTL mortgage enters charts

TSB has launched a new three-year fixed rate buy-to-let (BTL) mortgage, which is competitive enough ... More

Skipton’s 2yr BTL now number one
Skipton’s 2yr BTL now number one

Skipton BS has reduced the rate on its two-year fixed buy-to-let (BTL) mortgage by 0.17%, which sees... More

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