Our Best buy to let mortgage rate tables are updated daily for the latest buy to let mortgage rates available. The mortgage rates below are the lowest buy to let mortgages in the market with early repayment charges. If you have any questions about the BTL mortgage & remortgage schemes below please contact us with any queries.
Your home may be repossessed if you do not keep up repayments on your mortgage
The APRC quoted is representative and for example purposes, it is based on a £200,000 property with a £120,000 loan over 25 years equating to 300 monthly payments. Best buys are based on the Go Direct representative whole of market panel of lenders.
Once you compare the Buy to Let mortgage & remortgage rates if would like mortgage advice , complete our mortgage inquiry form and we will contact you to discuss your mortgage requirements. We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances such as complex cases or debt consolidation. Our typical fee would be £399.
The above information does not contain all the details you need to choose a mortgage. Please consult a qualified advisor before undertaking any borrowing/these calculations are for illustration purposes only and may not reflect the true cost of repayment.
If you are considering becoming a landlord and need to borrow money, you will need a buy-to-let mortgage rather than a standard mortgage.
Buy to let mortgages are similar to standard ones, but have key differences that you should understand before committing to this type of investment.
If you want to borrow money to purchase a property to rent out, you'll need a buy-to-let mortgage. However, if you intend to rent out your current home, you'll either need your lender's permission to let the property or you'll need to refinance into a buy to let mortgage.
Most buy-to-let lenders require a deposit of at least 25% of the property's purchase price, giving you a mortgage of up to 75% loan-to-value (LTV). However, some lenders offer buy-to-let mortgages at higher LTVs, with 80% LTV mortgages requiring a 20% deposit and, in some cases, 85% LTV mortgages requiring a 15% deposit.
For example, if you are buying a rental property for £300,000, a 25% deposit would be £75,000, a 20% deposit would be £60,000, and a 15% deposit would be £45,000.
The amount you can borrow compared with the property's value is known as the loan-to-value (LTV). Generally, a larger deposit and lower LTV can give you access to a wider choice of buy-to-let mortgages and potentially more competitive interest rates. The maximum LTV available will depend on the lender, property type and your individual circumstances.
Interest rates on BTL mortgages tend to exceed rates on residential mortgages, reflecting the increased risk to the lender of the mortgage going unpaid.
One key difference between a buy-to-let mortgage and a standard home mortgage is the method lenders use to assess how much you can borrow. For buy-to-let mortgages, this is based on the property's expected rental income rather than the borrower's personal income.
Lenders require the rent to cover at least 125% of the monthly mortgage payment based on a specific interest rate. So if the mortgage is £1,000 per month, the rent must be £1,250 or more. The 125% is for a basic rate tax payer, for a higher rate tax payers this can be 145%/165% depending on the lender
A property surveyor will verify the rental value, but landlords can get estimates from local letting agents or Zoopla beforehand.
The extra rental income covers other landlord costs like vacancies, maintenance, fees, safety checks, and insurance. For variable or tracker rate mortgages, lenders also confirm borrowers can afford any potential rate increases. This is often done by the lender using a higher interest rate for the rental stress test.
When comparing a buy to let mortgage, its important to read the terms and conditions carefully, as they vary. Some prohibit tenancy agreements longer than one year, while others ban renting to tenants receiving benefits or corporate lets.
If you own a property with a mortgage and rent it out, but do not have a buy-to-let mortgage or permission to rent, you could be convicted of mortgage fraud. A buy-to-let mortgage is meant solely for landlords renting out properties and not for owner-occupiers. In other words, buy-to-let mortgages are strictly for investment properties only, not primary residences.
