The best buy-to-let mortgage rates 04.09.20 | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 04/09/2020

We’ve set out the lowest rate buy-to-let mortgage deals available this week to landlords. In addition, we have also included the best rates available to those using a limited company for their buy-to-let portfolio and for first-time landlords.

The best buy-to-let fixed rate mortgages

Provider

Rate

Initial rate period

Product fee

How to apply

The Mortgage Works

1.19% fixed

Two years

2% of advance

Broker only

Virgin Money

1.80% fixed

Three years

£1,995

Speak to lender

Birmingham Midshires Solutions

1.62% fixed

Five years

£1,995

Broker only

The Mortgage Works, a part of Nationwide Building Society, only offers its buy-to-let mortgages through brokers. This week, it has the best rate for a two-year fixed rate buy-to-let mortgage at 1.19% (4.4% APRC) fixed until 30 November 2022, and after this the rate increases to 4.74% variable. The fee is 2% of the mortgage loan. Landlords will need equity or a deposit of 35% and achieve rental income that is 125% more than the mortgage interest. The Mortgage Works uses a rate of 5.50% to calculate mortgage interest for this requirement. Landlords must have no more than 10 properties (excluding residential) to be eligible for this mortgage.
Virgin Money has the lowest buy-to-let mortgage rate for a three-year fixed period at 1.80% fixed until 1 January 2024, after which the rate increases to 4.54% variable. The maximum loan-to-value (LTV) is 60% and the fee is £1,995. This mortgage also comes with free valuation and £250 cashback for a new purchase or £300 for a buy-to-let remortgage.
Landlords need to have an income of at least £25,000 and be less than 85 at the end of the mortgage term. The rental income required is 145% of mortgage interest and Virgin Money uses a rate of 5.50% to calculate the interest in this instance. Alternatively, Virgin Money also accepts income multiples. Landlords must have no more than three properties (excluding residential) to be eligible for this mortgage.
The lowest rate for a five-year fixed rate buy-to-let mortgage is 1.62% (3.5% APRC) fixed until 31 December 2025 from Birmingham Midshires Solutions. After the five-year term, the rate increases to 4.44% variable. Landlords will need a 40% deposit to qualify for this mortgage and cannot be older than 80 at the end of the mortgage term. Rental income must be 125% of mortgage interest calculated at a rate of 5.25%. Landlords cannot have more than 10 buy-to-let properties to be eligible for this mortgage. This mortgage is only available through a mortgage broker.

The best 80% LTV buy-to-let mortgages

This week, Accord Mortgages, a part of Yorkshire Building Society, dominates the best rates for 80% LTV buy-to-let mortgages. The best rate is 2.78% (4.30% APRC) fixed until 31 December 2022, after which it reverts to 4.49% variable. There is a fee of £1,995 and free valuation and £250 cashback is included. Landlords cannot have more than 10 buy-to-let mortgages to be eligible for this deal. In addition, the minimum rental income requirement is 135% of mortgage interest calculated at 5.50%.

The best buy-to-let limited company mortgages

State Bank of India currently has the lowest rate for a buy-to-let mortgage available to those with a limited company. The rate is 2.49% fixed for two years, after which it reverts to 4.74% variable. The fee is 1.25% of the mortgage loan. There is no limit on the maximum properties allowed and rental income must be at least 125% of mortgage interest calculated at a rate of 5.50%. Landlords remortgaging using this deal will also get refunded valuation fees and £300 cashback.

The best first-time landlord buy-to-let mortgages

This week, the lowest rate for a buy-to-let mortgage available to first-time landlords is from NatWest at 1.35% (3.7% APRC) fixed until 31 December 2022. The fee is £995, and landlords must be less than 70 years old before the mortgage term ends. Landlords need a minimum income of £25,000 and the rental income must be 135% of the mortgage interest calculated at 5.50%. This lender also accepts income multiples.

Speak to a broker about buy-to-let mortgages

Landlords can speak with our preferred mortgage broker to find out more about the best deals available and to help them find the right lender for their properties.

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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