The Best BTL Mortgages August 2021 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 25/08/2021

Landlords looking for a new buy-to-let (BTL) mortgage deal will be pleased to see that rates within the BTL chart remain highly competitive this month. During August many high street lenders have cut rates on their BTL deals, including Santander and Virgin Money which both reduced rates across a range of their BTL deals.

To help landlords get an idea of the types of rates currently available on BTL mortgages we’ve highlighted some of the lowest rates currently available in our charts.

The best two year fixed rate BTL mortgages

Landlords looking to lock into a two year fixed rate BTL mortgage at a 60% loan-to-value (LTV) will find the lowest rate comes from Platform, which is part of The Co-operative Bank. This deal offers 1.18% (4.6% APRC) fixed to 30 November 2023 and then reverts to 5.00% variable. This deal charges a product fee of £1,999. Landlords must have a rental income from a minimum of 128.00% of mortgage interest and a minimum income of £25,000. It comes with the incentive of a free valuation and free legal fees for those remortgaging, as well as £500 cashback.

The lowest BTL mortgage rate for landlords looking for a deal at a 75% LTV is from The Mortgage Works, which offers 1.39% (5.0% APRC) fixed until 30 September 2023, which reverts to 5.24% variable. It charges a product fee of 2.00% of the mortgage amount. Landlords must have a rental income of a minimum of 125.00% of the mortgage interest. It comes with incentives of a free valuation and free legal fees. 

Compare two year fixed BTL mortgages

The best five year fixed rate BTL mortgages

Landlords preferring to lock into a five year fixed rate BTL deal will find that the lowest rate this month came from The Mortgage Works, which offers 1.59% (4.0% APRC) fixed until 30 September 2026 and then reverts to 4.74% variable. This deal is available to landlords with a 65% LTV and it charges a product fee at 2.00% of the mortgage amount. To be eligible for this deal, landlords must have a rental income of a minimum of 125% of the mortgage interest. It comes with incentives of a free valuation and free legal fees.

The Mortgage Works also had the lowest rate on a five year fixed BTL deal at a 75% LTV. It offers 1.79% (4.4% APRC) fixed until 30 September 2026, after which it reverts to 5.24% variable. The product fees on this deal at charged at 2.00% of the mortgage amount. Landlords must have a rental income of a minimum of 125% of the mortgage interest. It comes with incentives of a free valuation and free legal fees.

Compare five year fixed BTL mortgages

The best first-time landlord mortgages

New landlords looking for the lowest BTL mortgage rate will find that Virgin Money has the lowest rate on both a 65% and 75% LTV deal. Its 65% LTV deal offers 1.44% (4.1% APRC) fixed to 1 December 2023 and then reverts to 4.54% variable. Its 75% LTV deal offers 1.64% (4.1% APRC) fixed until 1 December 2023 and then reverts to 4.54% variable. Both deals charge £995 in product fees. These deals are available to landlords with a rental income of a minimum of 145% of the mortgage interest.

First time landlords looking for a five year fixed deal will find that NatWest has one of the most competitive deals this month offering 1.65% (3.2% APRC) fixed until 30 November 2026, which reverts to 4.09% variable. This deal is available at a 60% LTV and charges £995 in product fees. Landlords must have a rental income of a minimum of 125% of the mortgage interest.

Compare first-time landlord mortgages

The best BTL Limited Company mortgages

Landlords operating under a BTL Limited Company will find that during August the most competitive deal came from The Mortgage Works. This deal offers 2.79% fixed until 30 September 2023 and then reverts to 5.54% variable. It is available at an 80% LTV and landlords must have a rental income of a minimum 125% of the mortgage interest. It charges a product fee at 2.00% of the mortgage amount and comes with the incentive of a free valuation.

Another highly competitive deal for landlords operating under a BTL Limited Company is Molo Finance’s deal offering 2.90% fixed for two years, after which it reverts to 4.41% variable. This deal is available to those with a 65% LTV and charges product fees at 1.00% of the mortgage amount. Landlords must have a rental income of a minimum of 125% of the mortgage interest for this deal.

Compare BTL Limited Company mortgages

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