Best mortgage deals for buy-to-let investors

If you’re looking to invest, or rearrange a mortgage on a buy-to-let property, how do you pick the right deal for your circumstances?

Many people are looking towards the property market as they seek higher returns than those offered by traditional savings accounts and other forms of investment.

Buy-to-let investors often get mortgages on an interest-only basis - though repayment options are available if that is appropriate for your circumstances. Remember while property prices have risen in the last few years, there is no guarantee that values will keep increasing.

Our round-up of the best buy-to-let deals is based on someone borrowing on an interest-only basis against a £250,000 property for 20 years. Our buyer is paying all fees up front.

75% LTV

There are a range of options for borrowers with a 25% deposit with rates at historic lows, here are our top buy-to-let picks this week.

Platform, up to 75% LTV, 1.99%
Fixed until 31 August 2019 then reverts to SVR (currently 5.5%)

Platform has the cheapest two-year fixed rate deal charging interest at 1.98% with an upfront product fee of £928, after cashback. Monthly interest only repayments are £311 for the first two years, an annual cost of £4,195. Once the fixed rate expires the SVR of 5.5% kicks in. This product is only available through a mortgage broker.

Accord Mortgages, up to 75% LTV, 2.97%
Fixed until 30 November 2022 then reverts to SVR (currently 5.54%)

Accord comes out top of the five-year fixed rate deals. This has a headline rate of 2.97% until 2022. Monthly repayments are £464, representing an annual cost of £5,656. The fees here are £428 after cashback. Accord products are only available through a mortgage broker.

Virgin Money, up to 75% LTV, 2.19%
Bank of England base rate (currently 0.25%) plus 1.94% until 1 October 2019 then reverts to SVR (currently 4.74%)

If you’re willing to take your chances with a variable rate mortgage then Virgin Money offers a deal at 1.94% above base rate. There are fees of £709 after cashback and monthly payments are £342 - equivalent to £4,461 per year.

60% LTV

Deals are more attractive with a 40% deposit and many rates are available for well under 2%. You’ll need to remember to factor in the fees, which in some cases makes the total cost much more expensive. 

Platform, up to 60% LTV, 1.49%
Fixed until 31 August 2019 then reverts to SVR (currently 5%)

This deal has a rate of 1.49%, fixed until 2019, meaning it’ll cost £186 per month to borrow £150,000. Borrowers will need to pay £928 in upfront fees. The annual cost is £2,669. Platform products are only available through a mortgage broker.

Accord Mortgages, up to 60% LTV, 2.24%
Fixed until 30 November 2022 then reverts to SVR (currently 5.54%)

For a longer fix, this rate is guaranteed until 2022. The total monthly cost is £280 per month, meaning the annual total is £3,756. Borrowers must pay fees of £1,973 with this loan, after cashback.

Leeds Building Society, up to 60% LTV, 1.65%
Bank of England base rate (currently 0.25%) plus 1.4% until 31 July 2022 then reverts to SVR (currently 5.74%)

Leeds comes out on top of the variable deals. Repayments are £206 per month with £1,999 fees. That’ll cost £2,947 per year.

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Published: 03 August 2015
Last updated: 20 June 2017

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