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        Updated: April 17, 2024

        Buy-to-Let Mortgage Rates

        Looking for the best rates on a buy-to-let mortgage?

        Find all the information you need and learn how to secure the lowest BTL rates on the market with our in-depth guide.

        Ask a quick question

        We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages. Ask us a question and we'll get the best expert to help.

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        No impact on your credit score

        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.

        Lender Product Details
        Frosted Rates Image

        Looking for more rates and deals?

        We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market and help you secure the best ones available.

        Last updated August 2023

        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

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from an expert in Buy to Let Mortgages.

        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.

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        Buy-to-Let Mortgage Calculator

        Our buy-to-let mortgage calculator can show you how much your mortgage could cost you each month and overall. Simply enter the rental property value, deposit, anticipated monthly rent, interest rate, mortgage term and our caculator will do the rest.

        Enter the value of the rental property here
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        A deposit of at least 20% is usually required for a buy-to-let mortgage
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        Most lenders will require a deposit of at least 20%
        Deposit must be less than the property value
        Enter the anticipated monthly rent here
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        3%-3.5% is an average figure but the rate you get may vary
        %
        25 years is the average, but most lenders offer both longer and shorter terms
        years
        Borrowing

        Loan to Value ratio (LTV):

        Most lenders won't offer buy-to-let mortgages over a LTV of 80%.

        Interest Cover Ratio (ICR):

        Most lenders require rental income to be at least 125%-145% of the interest repayments for a buy-to-let mortgage.

        Get started with a specialist buy-to-let broker to find out how much they could help you save on your monthly mortgage repayments.

        Our Broker-Matching Service Guaranteed!

        We want you to have complete confidence in our service, and get the best chance of securing your mortgage. We guarantee to get your mortgage approved where others can’t – or we’ll give you £100*

        Learn More
        Mortgage Approval Guarantee or £100 back

        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.

        Lender Product Details
        Frosted Rates Image

        Looking for more rates and deals?

        We can match you with a mortgage broker who can provide you with up-to-date bespoke rates and deals from across the entire market and help you secure the best ones available.

        Last updated August 2023

        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.

        Get Started with a Broker

        Maximise your chance of approval with specialist advice from an expert in Buy to Let Mortgages.

        FAQs

        As a rough guide, most landlords would expect to pay between 4% and 6% at the time of writing (January 2023). BTL mortgage rates are not calculated in the same way as residential rates.

        The amount you can borrow and deal you can secure are based more on the rental profit you expect from the property rather than your personal income.

        Other factors that will affect the rate you’re offered include:

        Yes. These are commercial BTL mortgages which are unregulated and generally come with higher rates of interest.

        But competitive rates are available if you know where to look and one other option could be to consider using a Special Purpose Vehicle (SPV) for your buy-to-let mortgage. Many lenders in this niche only accept applications via an intermediary.

        Let-to-buy mortgages require you to have a BTL mortgage and residential mortgage at the same time.

        Rates are calculated according to the lenders usual eligibility criteria, but each mortgage will affect affordability for the other.

        Often, yes. Nobody works for free and where a mortgage is advertised as no-fee, the broker arranging the deal will usually receive a commission from the lender.

        It’s not uncommon for the lender to offset this by charging a higher rate. The rates can also be higher if you’re a first-time landlord due to the increased risk the mortgage provider is taking on by lending to someone with no track record in BTL.

        Ask a quick question

        We can help! We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in Buy-To-Let mortgages. Ask us a question and we'll get the best expert to help.

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        Pete Mugleston

        Pete Mugleston

        Mortgage Expert, MD

        About the author

        Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

        Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

        FCA Disclaimer

        *Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us as well as any of our own are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

        Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.