Best mortgage deals for buy-to-let investors

17 July 2019

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?


Moneywise Best Buy

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.

Sainsbury's Bank, up to 75% LTV, 1.81%
Fixed until 31 Ocotber 2021, then reverts to SVR (currently 5.24%)
Sainsbury's Bank has the cheapest two-year fixed rate deal charging interest at 1.81% with scheme fees of £1,044 Monthly interest repayments are £283. For the first two years the annual cost is £3,916.

The Mortgage Works, up to 75% LTV, 2.19%
Fixed until 30 September 2024, then reverts to SVR (currently 4.24%)
This five-year fixed mortgage has monthly repayments of £342. This includes fees of £2,044 and gives a total annual cost of £4,515.

NatWest, up to 75% LTV, 1.95%
Base rate + 1.20% for two years then reverts to SVR of 4.74%.
If you're willing to take your chance with a variable rate mortgage then NatWest offers this deal. There are no scheme fees and monthly payments are £305 - equivalent to £4,029 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 September 2021, then reverts to SVR (currently 5.25%)
This deal has a rate of 1.94%, fixed until 31 August 2021 meaning it’ll cost £243 per month to borrow £150,000. There are no fees and the annual cost is £2,910. 

Skipton Building Society up to 60% LTV, 2.09%
Fixed until 30 September 2024, then reverts to SVR (currently 5.19%)
For a longer fix, this rate is guaranteed until 30 September 2024. The total monthly cost is £261 per month, meaning the annual total is £3,334.

NatWest, up to 60% LTV, 1.68%
Rate is base rate + 0.93% until 31 October 2021, then reverts to SVR (currently 4.74%)
NatWest comes out on top of the variable deals. Repayments are £210 per month with no fee, meaning a total cost of £2,893 per year.

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

First published on 3 August 2015