Best mortgage deals for buy-to-let investors

12 February 2019
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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?

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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 Moneywise Best Buys are selected based on someone borrowing on an interest-only basis against a £250,000 property for 20 years, at either 60% or 75% loan to value (LTV). Our buyer is paying all fees up front.

Top buy-to-let mortgages at 75% LTV

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

Platform, up to 75% LTV, 2.09%
Fixed until 30 April 2022, then reverts to SVR (currently 5.75%)
Platform has the cheapest two-year fixed rate deal charging interest at 2.09% with no scheme fees. Monthly repayments are £957. For the first two years the annual cost is £11,478.

The Mortgage Works, up to 75% LTV, 2.14%
Fixed until 31 March 2025, then reverts to SVR (currently 4.74%)
This five-year fixed mortgage has monthly repayments of £961. This includes fees of £1,044 and gives a total annual cost of £11,741.

Paragon, up to 75% LTV, 2.95%
2.65% discount for two years then reverts to SVR of 5.60%.
If you're willing to take your chance with a variable rate mortgage then Paragon offers this deal. Monthly payments are £1,035 - equivalent to £13,232 per year.

Best buy-to-let deals at 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, 1.94%
Fixed until 30 April 2022, then reverts to SVR (currently 5.25%)
This deal has a rate of 1.94%, fixed until 30 April 2022 meaning it’ll cost £744 per month to borrow £150,000. There are no scheme fees and the annual cost is £8,928. 

Platform, up to 60% LTV, 1.94%
Fixed until 30 April 2025, then reverts to SVR (currently 5.25%)
For a longer fix, this rate is guaranteed until 30 April 2025. The total monthly cost is £755 per month with no scheme fees, meaning the annual total is £9,055.

Birmingham Midshires, up to 60% LTV, 1.84%
Base rate + 1.09% for two years, then reverts to SVR (currently 5.09%)
Birmingham comes out on top of the variable deals. Repayments are £748 per month with no scheme fees, meaning a total cost of £8,970per year.

 

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Call free on 0800 073 1936 or see mortgage best buys online.

First published on 3 August 2015