The best buy-to-let mortgages 2 June 2021 | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 02/06/2021

New BTL mortgage launches this week

Holiday let mortgages remain in huge demand with Paragon Bank launching a holiday let mortgage this week. Other buy-to-let mortgage launches came from Barclays Mortgage and Chorley Building Society, with Precise Mortgages and Nottingham Building Society launching mortgages specifically for buy-to-let limited companies.
Find out more about how a holiday let mortgage works.

BTL mortgage lenders with rates going up this week

Those lenders increasing rates on buy-to-let mortgages this week included Lloyds Bank, The Mortgage Works (part of Nationwide Building Society) and TSB.


Lloyds Bank increased selected buy-to-let mortgage rates by 0.05%, The Mortgage Works increased rates on selected buy-to-let limited company remortgages by up to 0.25%. Finally, TSB increased selected buy-to-let fixed rates across two and five year terms at 60% loan-to-value (LTV) by 0.05%.

BTL mortgage lenders with rates going down this week

Those lenders reducing rates on buy-to-let mortgages this week included The Mortgage Works (part of The Nationwide Building Society), Virgin Money and Skipton Building Society.
The Mortgage Works reduced selected buy-to-let remortgages at 65% LTV by 0.30% and at 75% LTV by up to 0.40% this week. Virgin Money reduced rates by up to 0.05% on selected fixed rate buy-to-let mortgages up to 75% LTV and Skipton Building Society reduced its variable tracker buy-to-let rates by up to 0.17%.

Need a buy-to-let mortgage?

Compare the best buy-to-let rates or speak with our preferred mortgage broker, Mortgage Advice Bureau on 0808 149 9177 and find a competitive deal your buy-to-let business.

The best buy-to-let mortgage rates this week

We have selected the best rates for buy-to-let mortgages across a range of terms, interest types and LTVs.

 

Lender

Rate and LTV

Initial rate period

Product fee

Apply

The Mortgage Works

1.19% fixed 

65% LTV

Two years

2% of advance

Go To Provider’s Site

Accord Mortgages

1.70% fixed

60% LTV

Three years

£1995

Speak To A Broker

The Mortgage Works

1.64% fixed

65% LTV

Five years

2% of advance

Go To Provider’s Site

Virgin Money

2.43% fixed

60% LTV

Ten years

£995

Go To Provider’s Site

The Mortgage Works

1.39% fixed

75% LTV

Two years

2% of advance

Go To Provider’s Site

Loughborough Building Society 

3.15% discounted variable

80% LTV

Two years

No fees

Speak To A Broker

Molo Finance

3.29% fixed

80% LTV

Five years

£1750

Go To Provider’s Site

The best two-year fixed rate buy-to-let mortgage rate is from The Mortgage Works at 1.19% (4.5% APRC) to 31 July 2023. After this the rate increases to 4.74% variable. The fee is 2% of the mortgage advance. This mortgage is available to first time landlords. Rental income must be 125% of mortgage interest (calculated using a rate of 5.50%) if up to 3 properties in portfolio Those with an LTV of 65% and below can have up to 10 buy-to-let properties in their portfolio however, the rental income is calculated at 145%. 
The best three-year fixed rate buy-to-let mortgage rate is from Accord Mortgages at 1.70% (3.9% APRC) to 31 October 2024. After this the rate increases to 4.49% variable. The fee is £1,995. This mortgage is available to first time landlords. Rental income must be 125% of mortgage interest (calculated using a rate of 5.50%). Landlords must have a minimum income of £30,000. The maximum LTV is 60% and landlords can only have five properties mortgaged with Accord. There is no maximum for the total number of properties outside of this. There is a free valuation and £500 cashback available.
The best five-year fixed rate buy-to-let mortgage rate is from The Mortgage Works at 1.64% (3.8% APRC) to 31 July 2026. After this the rate increases to 4.74% variable. The fee is 2% of the mortgage advance. This mortgage is available to first time landlords. Rental income must be 125% of mortgage interest (calculated using a rate of 5.50%) if up to 3 properties in portfolio. Those with an LTV of 65% and below can have up to 10 buy-to-let properties in their portfolio however, the rental income is calculated at 145%.
The best ten-year fixed rate buy-to-let mortgage rate is from Virgin Money at 2.43% (3.2% APRC) to 1 October 2031. After this the rate increases to 4.54% variable. The fee is £995. This mortgage is available to first time landlords. Rental income must be 145% of mortgage interest (calculated using a rate of 4.50%). Those with an LTV of 60% and below can have up to three buy-to-let properties in their portfolio. Landlords must have a minimum income of £25,000. Those needing to remortgage a buy-to-let property can qualify for a free valuation and free legal fees or £300 cashback. Those buying a new buy-to-let property can qualify for £500 cashback. 
The best buy-to-let mortgage rate at 75% LTV is from The Mortgage Works at 1.39% (5.0% APRC) to 31 July 2023. After this the rate increases to 5.24% variable. The fee is 2% of the mortgage advance. This mortgage is not available to first time landlords and can only be used to remortgage a buy-to-let property. Rental income must be 125% of mortgage interest (calculated using a rate of 4.50%) for portfolios with up to 3 properties. Those with up to 10 buy-to-let properties in their portfolio must have rental income of 145% Those with a higher LTV of up to 75% may also qualify for this mortgage, but the rental income is calculated using a rate of 4.99%. There are free valuation and free legal fees available. 
The best buy-to-let mortgage rate at 80% LTV is from Loughborough Building Society at 3.15% discounted variable (5.2% APRC) for two years. This mortgage is a 2.19% discount against the Society’s standard variable rate (SVR) of 5.34%. If this SVR changes the discount will be applied and the initial rate will change. The lowest rate allowed is 2.00%. After the two-year term the rate increases to 5.34% variable. There is no fee and this mortgage is available to first time landlords. Rental income must be 130% of mortgage interest (calculated using a rate of 5.50%). A maximum of three buy-to-let properties are allowed. Landlords must have a minimum income of £25,000.
The best buy-to-let mortgage fixed rate at 80% LTV is from Molo Finance at 3.29% (4.3% APRC) for five years. After this the rate increases to 4.41% variable. The fee is £1750. This mortgage is available to first time landlords. Rental income must be 125% of mortgage interest (calculated at the mortgage interest rate). There is a maximum of four buy-to-let properties allowed. Landlords must have a minimum salary of £20,000. 

 

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