The Best Buy To Let Mortgage Rates April 2021 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 09/04/2021

Buy-to-let (BTL) remains an attractive investment opportunity for many investors, but when considering a BTL investment, it is important to factor in the costs of mortgage repayments on the property. To help new and existing landlords ensure that they are getting the best BTL mortgage deal, we’ve highlighted the top rates available in the two, five and 80% loan-to-value (LTV) mortgage charts.

The best buy-to-let mortgage rates

The rates below are the top rates available in the two and five year fixed BTL charts, as well as the top rate in the 80% LTV BTL chart.

 

Provider Rate Initial rate period Product fee How to apply
The Mortgage Works 1.19% fixed Two years 2.00% of advance Speak to a broker
The Mortgage Works 1.64% fixed Five years 2.00% of advance Speak to a broker
Loughborough Building Society 3.15% discounted variable Two years £0 Speak to a broker

 

The two year fixed deal from The Mortgage Works offers a rate of 1.19% (4.5% APRC) fixed until 31 May 2023, and after this it reverts to 4.74% variable. The deal is available at a 65% LTV and charges a product fee of 2% of the mortgage. This deal requires a rental income of a minimum of 125% of the mortgage interest.

The five year fixed deal from The Mortgage Works offers a rate of 1.64% (3.8% APRC) fixed until 31 May 2026, and then reverts to 4.74% variable. The deal is available at a 65% LTV. A product fee of 2.00% of the mortgage is charged. Landlords are required to have a rental income of a minimum of 125% of the mortgage interest for this deal.

The 80% LTV deal from Loughborough Building Society offers a discounted variable rate of 3.15% for two years, which then reverts to 5.34%. This deal does not charge a product fee. It is only available to those living in England and Wales and has a maximum loan of £350,000. Landlords must have a rental income from a minimum of 130% of the mortgage interest for this deal.

Below we’ve highlighted some of the other competitive deals available in these charts.

The best two year fixed buy-to-let rates

One of the most competitive rates at a 60% LTV in the two year fixed BTL chart comes from Santander, which offers 1.40% 3.2% APRC) fixed until 2 July 2023 and then reverts to 3.35% variable. This deal charges a product fee of £1,499 and comes with the incentive of free valuation up to a maximum of £1,190 for those in England, Wales and Northern Ireland or £95 towards valuations for those in Scotland. Landlords remortgaging also have the incentive of no legal fees up to a maximum of £200 or £250 cashback on completion. A minimum income of £25,000 is needed for this deal and landlords must have a rental income from a minimum of 130% of the mortgage interest.

The Mortgage Works has a competitive rate at 75% LTV in the two year fixed BTL chart, offering 1.59% (5.0% APRC) fixed until 31 May 2023, which then reverts to 5.24% variable. This deal charges a product fee of 2% of the mortgage. It requires a rental income from a minimum of 125% of the mortgage interest.

Compare two year fixed BTL deals

The best five year fixed buy-to-let rates

A competitive deal at 60% LTV in the five year fixed BTL chart comes from TSB, which offers a rate of 1.74% (3.8% APRC) fixed until 30 June 2026 and then reverts to 4.44% variable. It charges a product fee of £1,995 and comes with the incentive of free valuation. Landlords must have a minimum income, or joint income, of £25,000 and a rental income from a minimum of 145% of the mortgage interest.

Principality Building Society offers a competitive rate at 70% LTV in the five year fixed BTL chart for those living in England and Wales. This deal offers 1.99% (3.5% APRC) fixed until 31 August 2026, which then reverts to 4.40% variable. It charges a product fee of £1,395 and has the incentive of free valuation. A rental income of a minimum of 145% of mortgage interest is required for this deal.

Compare five year fixed BTL deals

The best 80% LTV buy-to-let rates

Molo Finance has a competitive five year fixed deal in the 80% LTV BTL chart, offering a rate of 3.29% (4.3% APRC) fixed for five years and then reverts to 4.41% variable. This deal is available to landlords living in England and Wales and charges a product fee of £1,750. A rental income of a minimum of 125% of the mortgage interest is required. Molo Finance also offers a two year fixed deal at 3.29% (4.5% APRC) and then reverts to 4.41% variable. This deal has the same terms and conditions as the five year deal. Landlords interested in these deals can find out more information and apply directly here.

Also offering a competitive five year fixed deal in the 80% LTV chart is Virgin Money, which offers a rate of 3.59% (4.4% APRC) fixed until 1 August 2026. This deal charges a product fee of £995 and has the incentives of £500 cashback for those making a house purchase, while for those remortgaging it offers free valuation, as well as £300 cashback or no legal fees. Landlords need a rental income of a minimum of 145% of the mortgage interest for this deal. Landlords can find out more information or apply directly here.

Compare 80% LTV BTL deals

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