Compare Buy to Let Mortgages
Whether you're a first-time landlord or a property investor expanding your portfolio you can compare the latest interest rates on buy to let mortgages from the UK's leading lenders below or read our guide for buy to let investors.
Featured buy to let mortgages - Ordered by lowest initial rate
Buy to Let: For landlords purchasing a property for letting.
Discount: The interest rate rises and falls with the provider’s standard variable rate but is set at a lower discounted rate for certain period.
Fixed: The interest rate is fixed for a certain period – usually 1 to 5 years.
Offset: Mortgage interest payments are offset against any savings you may hold.
Tracker: The interest rate rises and falls with the Bank of England base rate.
Variable: The interest rate rises and falls with the provider’s standard interest rate (SVR).
The introductory rate of interest that you will pay for a certain period of time depending on the mortgage type and term.
The length of time that the initial interest rate applies to the mortgage.
This is the mortgage’s Annual Percentage Rate (APR): the interest rate that you will be charged on your mortgage including all charges such as arrangement fees.
The percentage of a property’s value for which the mortgage can be used.
Example: 75% loan to value = 25% deposit.
- Fee To
This is the fee that must be paid to the lender when you take out the mortgage.
If the fee charged is a % we have based the fee on a 150k mortgage.
Will your lender charge you for repaying the mortgage early?
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Buy to let mortgages explained
With buy to let mortgage, you can borrow money for property which you then rent out.
It works in much the same way as a regular mortgage, with variable, fixed or tracker interest rates and a range of loan-to-value options.
A buy to let does tend to cost more than a mortgage on your home, both in the interest rate you'll face and the amount of upfront deposit you'll need. But while it might not make you your millions, you could get a tidy boost to your income if you can charge more for rent each month than what your mortgage payments come to.
As a general rule, the banks will want you to prove that you can recoup around a third more than your costs before they offer you a deal.
Like with any investment, there are risks. If something happens to make rent prices slide then you could face yourself having to meet any shortfall out of your own pocket. Therefore, you'll have to do research into where you buy to make sure you are investing in an upcoming area where the value will rise, not fall.
You've also got to make sure that you can cover any repair costs that you will be liable for as a landlord and be prepared for the possibility that you may face times without tenants - and that means no rent.
But, with a few savvy decisions, you can definitely stand to profit from a buy to let.
Please use our whole of market mortgage comparison to compare all the top brands including RBS Mortgages, NatWest Mortgages, HSBC Mortgages, Santander Mortgages, Yorkshire Building Society Mortgages, Chelsea Building Society Mortgages and The Post Office Mortgages to name a few.
For more information, read our in-depth guide to buy to let mortgages.
Helpful links for mortgage issues
Gov.uk - The government website's 'Owning and renting property' page features information on a range of issues including buying and selling property, property regulations and taxes, and mortgage aid schemes.
HMRC - HM Revenue & Custom's Stamp Duty page tells you everything you need to know about the tax including reliefs, exemptions, payments and penalties.
Council of Mortgage Lenders (CML) - The CML's consumer information pages feature a host of information on buying a property and choosing and managing a mortgage.
Citizens Advice Bureau - Citizens Advice Bureau's 'mortgage problems' section offers help and advice to people who are having trouble keeping up with their mortgage repayments.