Best mortgage deals for buy-to-let investors

11 December 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?


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.

Barclays, up to 75% LTV, 1.57%
Fixed until 31 January 2022, then reverts to SVR (currently 5.24%)
Barclays has the cheapest two-year fixed rate deal charging interest at 1.57% with scheme fees of £1,594. Monthly repayments are £245. For the first two years the annual cost is £3,741.

Virgin Money, up to 75% LTV, 2.12%
Fixed until 01 January 2025, then reverts to SVR (currently 5.19%)
This five-year fixed mortgage has monthly repayments of £319. This includes fees of £1,994 and gives a total annual cost of £4,224.

Birmingham Midshires, up to 75% LTV, 2.09%
Base rate + 1.34% for two years then reverts to SVR of 5.09%.
If you're willing to take your chance with a variable rate mortgage then Birmingham Midshires offers this deal. Monthly payments are £327 - equivalent to £3,918 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. 

NatWest, up to 60% LTV, 1.62%
Fixed until 31 March 2022, then reverts to SVR (currently 4.74%)
This deal has a rate of 1.62%, fixed until 31 March 2022 meaning it’ll cost £203 per month to borrow £150,000. There are fees  of £745 and the annual cost is £2,803. 

Virgin Money, up to 60% LTV, 1.85%
Fixed until 1 March 2025, then reverts to SVR (currently 5.19%)
For a longer fix, this rate is guaranteed until  1 March 2025. The total monthly cost is £231 per month with fees of £994, meaning the annual total is £2,974.

NatWest, up to 60% LTV, 4.74%
Rate is 1.68%, then reverts to SVR (currently 4.74%)
NatWest comes out on top of the variable deals. Repayments are £210 per month with fees of £745, 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