Buy-to-let mortgage rates fall again

If you're a landlord or thinking of becoming one, there's good news on the mortgage front.

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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

Virgin Money

70%

2.14%

£1,995

The Mortgage Works

75%

2.14%

2% of amount borrowed (£3,000 on £150,000 mortgage)

Mortgage Trust

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

HSBC

60%

2.39%

£349

Post Office

70%

2.75%

£0

HSBC

75%

2.79%

£349

Mortgage Trust

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

Accord Mortgages

60%

2.59%

£1,845

Aldermore

70%

2.99%

1.5% of amount borrowed (£1,200 on £140,000 mortgage)

Virgin Money

75%

3.14%

£1,995

Aldermore

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

Leeds Building Society

60%

3.14%

£199

Leeds Building Society

70%

3.34%

£199

Accord Mortgages

75%

3.44%

£0

Mortgage Trust

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

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