The best buy-to-let mortgages 2 June 2021

Home News Mortgages The best buy-to-let mortgages 2 June 2021

ARCHIVED ARTICLE This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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
The Mortgage Works	1.19% fixed 65% LTV	Two years	2% of advance
Accord Mortgages	1.70% fixed 60% LTV	Three years	£1995
The Mortgage Works	1.64% fixed 65% LTV	Five years	2% of advance
Virgin Money	2.43% fixed 60% LTV	Ten years	£995
The Mortgage Works	1.39% fixed 75% LTV	Two years	2% of advance
Loughborough Building Society	3.15% discounted variable 80% LTV	Two years	No fees
Molo Finance	3.29% fixed 80% LTV	Five years	£1750

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.

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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