Buy-to-let mortgage rates fall again
Looking for a buy-to-let mortgage? There are some really great deals out there – provided you know where to look.
Here, we examine some of the top fixed-rate and tracker buy-to-let mortgage deals currently available to landlords.
Best two-year fixed rate buy-to-let mortgages
First, let's look at the two-year fixed rate mortgages.
These are the lowest rates on the loveMONEY mortgage comparison service, but you'll usually pay the price for a cheap rate in the form of a big fee.
Lender | LTV | Interest rate | Mortgage fee |
Accord Mortgages | 60% | 1.64% | £1,845 |
70% | 2.14% | £1,995 | |
75% | 2.14% | 2% of amount borrowed (£3,000 on £150,000 mortgage) | |
80% | 3.15% | 1% of amount borrowed (£1,600 on £160,000 mortgage) |
As you can see, there are some massive fees there. So we've found the best two-year fixed rate mortgages with fees under £500 on a property worth £200,000.
Lender | LTV | Interest rate | Mortgage fee |
60% | 2.39% | £349 | |
70% | 2.75% | £0 | |
75% | 2.79% | £349 | |
80% | 3.69% | £0 |
Best five-year fixed rate buy-to-let mortgages
If you want to go for a longer-term fixed rate deal, then you may prefer a five-year fixed rate deal.
While you enjoy that security for longer, you may have to pay a premium in terms of a higher rate. You also have significant Early Repayment Charges to consider should you wish to leave the deal early.
Here are the lowest rate deals around with charges based on a property worth £200,000.
Lender | LTV | Interest rate | Fee |
60% | 2.59% | £1,845 | |
70% | 2.99% | 1.5% of amount borrowed (£1,200 on £140,000 mortgage) | |
75% | 3.14% | £1,995 | |
80% | 3.99% | 2.5% of amount borrowed (£4,000 on £160,000 mortgage) |
And now let's take a look at the best deals with fees under £500 on a property worth £200,000.
Lender | LTV | Interest rate | Fee |
60% | 3.14% | £199 | |
70% | 3.34% | £199 | |
75% | 3.44% | £0 | |
80% | 4.10% | £0 |
Tracker buy-to-let mortgages
With a tracker mortgage your monthly repayments may go up or down, usually depending on what's happening with the Bank of England Base Rate.
However, some lenders track other rates – often their own "base rate" or another variable rate such as London Interbank Offered Rate (LIBOR).
At the moment, there are some really great rates on offer. Just keep in mind that monthly costs will rise in the (unlikely) event that Base Rate rises.
Most trackers are for two years, but there a handful of products available for the entire term of the mortgage.
Best two-year buy-to-let tracker mortgages
Here are the best two-year tracker rates at the moment.
Lender | LTV | Interest rate | Fee |
Barclays | 60% | 1.68% (1.43% + Barclays Bank Base Rate) | £1,499 |
Virgin Money | 70% | 2.24% (1.99% + Bank of England Base Rate) | 2.5% on amount borrowed (£3,500 on £140,000 mortgage) |
The Mortgage Works | 75% | 2.09% (1.84% + Bank of England Base Rate) | 2% on amount borrowed (£3,000 on £150,000 mortgage) |
Precise Mortgages | 80% | 3.79% (tracks LIBOR) | 1.5% on amount borrowed (£2,400 on a £160,000 mortgage) |
Compare buy-to-let mortgage rates and fees