Best buy-to-let mortgages: grab low rates while you can

Looking for a buy-to-let mortgage? Rates have fallen, but maybe heading up soon so don't hang around for these deals.

Best buy-to-let mortgages: Grab low rates while you can

Looking for a buy-to-let mortgage? There are some 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

Platform (Intermediary)

60%

1.54%

£1,999

Coventry BS

65%

1.59%

£1,999

Post Office Money

70%

1.93%

£995

Post Office Money

75%

1.98%

£995

Mortgage Trust

80%

2.99%

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%

2.19%

£349

Barclays

65%

2.39%

£0

Post Office Money

70%

2.48%

£0

HSBC

75%

2.54%

£349

Aldermore

80%

4.88%

£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

Platform (Intermediary)

60%

2.44%

£1,999

Barclays

65%

2.49%

£1,850

Post Office Money

70%

2.78%

£995

HSBC

75%

2.79%

£1,999

Precise Mortgages

80%

4.49%

1.5% of amount borrowed (£2,400 on £160,000 mortgage)


And now let's look at the best deals with fees under £500 on a property worth £200,000.

Lender

LTV

Interest rate

Fee

HSBC

60%

2.74%

£349

HSBC

65%

2.84%

£349

Platform (Intermediary)

70%

3.19%

£0

HSBC

75%

3.09%

£0

The best 10-year fixed rate buy-to-let mortgages

Some providers will allow you to fix your buy-to-let mortgage for up to 10 years.

Again while you get security for longer, you usually 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.

There are fewer long lasting fixed rate deals like this on the market. But here are the lowest rates around with charges based on a property worth £200,000.

Lender

LTV

Interest rate

Fee

Barclays

65%

2.99%

£2,000

Precise Mortgages

75%

4.49%

1.5% of the amount borrowed (£2,250 on a £150,000 loan)

Precise Mortgages

80%

4.99%

1.5% of the amount borrowed (£2,400 on a £160,000 loan)

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).

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 right now.

Lender

LTV

Interest rate

Fee

Platform (Intermediary)

60%

1.49% (0.99% + BoE Base Rate (capped at 0.5%))

£1,999

The Mortgage Works

65%

1.74% (1.49% + BoE Base Rate)

2% of amount borrowed (£2,600 based on £130,000 loan)

Platform (Intermediary)

70%

1.89% (1.39% + BoE Base Rate (capped at 0.5%))

£1,999

Platform (Intermediary)

75%

1.94% (1.44% + BoE Base Rate (capped at 0.5%))

£1,999

Looking for a buy-to-let mortgage? Compare rates and fees at a glance

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