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Best buy-to-let mortgages

Best buy-to-let mortgages

Category: Buy To Let

Updated: 14/09/2017
First Published: 14/09/2017

Landlords may have had it tough in the last few years, what with the stamp duty surcharge, tighter affordability rules and tax relief changes, and that's before we even get to the new regulations set to hit the market at the end of the month. But that doesn't seem to be deterring providers to any extent, with the number of buy-to-let mortgages available at a post-crisis high and average rates at fresh lows.

So why not take advantage? Below we outline the best buy-to-let mortgages available across the market, including fixed rate deals, trackers and those available to first-time landlords, helping you find the best possible deal that can keep your budget in check.

Two-year BTL mortgage

Initial rate/ APRC LTV/Term
Details

Post Office Money

Post Office Money
Go to Site

1.41%
(4.2%)
Max 60% LTV, fixed to 30.11.2019
  • Available to current landlords and those remortgaging at up to 60% LTV
  • Fixed rate of 1.41% for two years, before reverting to an existing borrowers rate of 4.74% variable
  • APRC cost for comparison: 4.2%
  • £1,495 fee
  • Available for a maximum of three properties
  • Incentive package of free valuation fees and £300 cashback
  • Allows overpayments

This deal from Post Office Money comfortably takes the crown in the short-term sector, with a rate of 1.41% that's fixed for two years (4.2% APRC). It's available at 60% loan-to-value (LTV), and its £1,495 fee is partly offset by the generous incentive package that includes free valuation and cashback. It also permits overpayments, subject to certain conditions being met, allowing landlords to benefit even further from the current low rate environment.

Three-year BTL mortgage


Initital rate/APRC LTV/Term
Details

Virgin Money

Virgin Money
Go to Site

1.69%
(4.4%)

Max 60% LTV, fixed to 01.01.2021

  • Available to current landlords and those remortgaging at up to 60% LTV
  • Fixed rate of 1.69% for three years, before reverting to an existing borrowers rate of 4.74% variable
  • APRC cost for comparison: 4.4%
  • £1,995 fee
  • Available to landlords with a maximum of 11 properties (four properties with the lender)
  • Incentive of £500 cashback
  • Allows overpayments and payment holidays

Virgin Money's three-year deal takes the top spot in this sector of the market thanks to its low initial rate of 1.69% that's fixed to 01.01.2021 (4.4% APRC), making it a great choice for landlords wanting to make their money go further. Its flexibility further sweetens the deal - it permits both overpayments and payment holidays, subject to certain conditions, while the addition of £500 cashback will go a long way to making up for the hefty £1,995 fee.

Five-year BTL mortgage


Initial rate/APRC LTV/Term
Details

National Counties BS

Virgin Money
Go to Site

2.19%
(4.2%)

Max 60% LTV, fixed to 01.01.2023

  • Available to current landlords and those remortgaging at up to 60% LTV
  • Fixed rate of 2.19% for five years, before reverting to an existing borrowers rate of 4.74% variable
  • APRC cost for comparison: 4.2%
  • £1,995 fee
  • Available to landlords with a maximum of 11 properties (four properties with the lender)
  • Incentive of £500 cashback
  • Allows overpayments and payment holidays

If you want to secure your repayments for half a decade, you can't go wrong with Virgin Money, with it taking the top spot in the five-year sector, too. Its features mirror that of its three-year counterpart, with its fixed rate of 2.19% (4.2% APRC) keeping repayments to a minimum over the long term.

Tracker rate BTL mortgage


Initial rate/APRC LTV/Term
Details

Virgin Money

Virgin Money
Go to Site

1.54%
(4.3%)

Max 60% LTV, variable to 01.01.2020

  • Available to current landlords and those remortgaging at up to 60% LTV
  • 1.54% variable for two years, before reverting to an existing borrowers rate of 4.74% variable
  • APRC cost for comparison: 4.3%
  • £995 fee
  • Available to landlords with a maximum of 11 properties (four properties with the lender)
  • Incentive package £500 cashback
  • Allows overpayments and payment holidays

Virgin Money is clearly making its mark in buy-to-let, as it boasts the top rate in the variable sector as well! This comes with an initial variable rate of 1.54% over a two-year term, but remember that the rate is liable to fluctuate within that time. It comes with a lower fee than its fixed rate counterparts, while still offering the same flexibility and cashback incentive.

First-time landlord mortgage


Initial rate/APRC LTV/Term
Details

Post Office Money

Post Office Money
Go to Site

1.41%
(4.3%)

Max 60% LTV, fixed to 30.11.2019

  • Available for both current and would-be landlords, as well as those remortgaging, at up to 60% LTV
  • Fixed rate of 1.41% for two years, before reverting to an existing borrowers rate of 4.74% variable
  • APRC cost for comparison: 4.3%
  • £1,495 fee
  • Available for a maximum of three properties
  • Incentive package of free valuation fees and £300 cashback
  • Allows overpayments

Not all BTL mortgages are available to landlords who are just starting out, but if you're looking to make the jump to buy-to-let, Post Office Money has the solution. This deal takes pride of place in the first-time landlord sector with a rate of 1.41% that's fixed for two years, provided you've got a 40% deposit and enough to cover the £1,495 fee.

Rates and information correct as at 13.09.2017

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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