Buy-to-Let Mortgage Rates

Whether you’re an experienced landlord or you’re entering the buy-to-let (BTL) market for the first time, you’ll be looking for the best rates on BTL mortgages.

Take a look at our rates table below to get an idea of the buy-to-let mortgage deals currently available.

The rates quoted above were correct at the time of writing (April 2023) and are subject to change at any time at the lender’s discretion. Speaking to a mortgage broker is the best way to keep track of the rates available at any given time.

How to get the best rate on a buy-to-let mortgage

Securing the best rate available to you requires scouring the entire UK BTL mortgage market and comparing all possible deals. The best way to do this is by finding a mortgage broker who specialises in buy-to-let. Make an enquiry with us and we’ll match you with one for free.

Your mortgage broker will guide you through the following steps:

• Sourcing rates and deals that you qualify from across the buy-to-let market
• Choosing one that is the best fit for your needs and requirements
• Preparing the perfect application

How loan to value affects the deal you qualify for

Typically, most buy to let lenders require a deposit of between 20% and 25% of the property’s value. With this kind of loan-to-value (LTV) ratio, you are likely to have a wide range of products to choose from. That creates competition among lenders and, subsequently, competitive rates.

With an LTV of 50% or lower, you may find you can secure the lowest BTL mortgage rates on the market.

If you’re looking for a buy-to-let mortgage with an LTV of 85% or above, it’s essential you apply through a specialist broker as your borrowing options will be limited by going it alone.

Typical BTL rates by LTV are:

• 50% – 59%: Under 4%
• 60% – 69%: 4% – 4.5%
• 70% -79%: 4.5% – 5%
• 80% – 89%: 5% – 6%
• 90% – 100%: 6% +

These are average rates but, as you can see in the table above, there are better deals available where your circumstances match a lenders’ lending profile more closely.

How much your mortgage will cost

You can get an indication of how much your mortgage will cost based on a range of different interest rates with our buy-to-let mortgage calculator.

Using the information provided above, try a range of rates to see how they compare in terms of overall borrowing costs, and what criteria you must meet to access them. This information will be invaluable in determining how much deposit you need to maximise your return on investment.

How repayment interest rates compare to interest-only

Most BTL mortgages are taken out on interest-only terms to help limit monthly outgoings, but they are available using the repayment method too.

Whether you opt for a repayment or interest-only mortgage, the rate you get will be the same, but the amount you pay will differ. Take a look at our rates table below to get an idea of the repayment buy-to-let mortgage deals available.

What rates are available for HMO properties?

Fewer lenders offer HMO mortgages, but there are still some competitive rates available.

For example purposes, we have presented a selection that were available in January 2023 with a maximum LTV of 75% below:

• Barclays: 3.84% (2-year variable rate)
• Vernon: 3.94% (3-year fixed rate)
• Paragon: 4.09% (2-year discounted rate)

Why use Online Money Advisor?

The best way to secure the lowest rate on the market is to use a mortgage broker, but more specifically you’ll want to find one who is the best fit for you, and this is where we come in.

Googling ‘lowest BTL mortgage rates’ or ‘no-fee buy-to-let mortgages’ won’t necessarily result in the deal that will deliver your best return on investment. The only way to make sure you get the best deal is to speak to a broker who fully understands your requirements and the BTL mortgage market.

Our broker matching service will assess your circumstances and pair you up with a broker who is experienced in finding the best BTL mortgage rates for landlords in your situation.

To get matched with your ideal buy-to-let mortgage broker call today on 0808 189 0463 or enquire online.