Best mortgage deals for buy-to-let investors

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 capital 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.

Get help finding the best buy-to-let mortgage deals

Our round-up of the best buy-to-let deals is based on someone borrowing on an interest-only basis against a £250,000 property for 20 years. Our buyer is paying all fees up front.

75% LTV

There are a range of options for borrowers with a 25% deposit with rates at historic lows, here are Moneywise's top buy-to-let picks this week.

Post Office, up to 75% LTV, 1.98%
Fixed until 30 June 2019 then reverts to SVR (currently 4.74%)

The Post Office has the cheapest two-year fixed rate deal charging interest at 1.98% with an upfront product fee of £1,305. Monthly interest only repayments are £309 for the first two years, an annual cost of £4,365. Once the fixed rate expires the SVR of 4.74% kicks in.

Virgin Money, up to 75% LTV, 2.89%
Fixed until 1 September 2022 then reverts to SVR (currently 4.74%)

Virgin Money comes out top of the five-year fixed rate deals. This has a headline rate of 2.89% until 2022. Monthly repayments are £452, representing an annual cost of £5,761. The fees here are a hefty £2,209 although there is £500 cashback.

Virgin Money, up to 75% LTV, 2.19%
Bank of England base rate (currently 0.25%) plus 1.94% until 1 September 2019, then reverts to SVR (currently 4.74%)

If you’re willing to take your chances with a variable rate mortgage then Virgin Money will charge the Bank of England's base rate plus 1.94%, which is currently 2.19%. There are fees of £1,209 but £500 cashback is available. Monthly payments are £342 - equivalent to £4,461 per year.

60% LTV

Deals are slightly more attractive with a 40% deposit, with many rates available for well under 2%. You’ll need to remember to factor in the upfront fees, which in some cases makes the total cost much more expensive. 

Platform, up to 60% LTV, 1.59%
Fixed until 31 July 2019 then reverts to SVR (currently 5%)

This deal has a rate of 1.59%, fixed until 2019, meaning it’ll cost £199 per month to borrow £150,000. Borrowers will need to pay £928 in upfront fees, after £250 cashback. The annual cost is £2,849. Platform products are only available through a mortgage broker.

BM Solutions, up to 60% LTV, 2.24%
Fixed until 30 September 2022 then reverts to SVR (currently 4.84%)

For a longer fix, this rate is guaranteed until 2022. The total monthly cost is £280 per month, meaning the annual total is £3,815. Borrowers must pay upfront fees of £2,450 with this product. This product is only available through a mortgage broker.

Godiva Mortgages, up to 65% LTV, 1.69%
Variable for term

Godiva Mortgages comes out on top of the variable deals. Repayments are £211 per month with £1,999 fees. That’ll cost £2,647 per year. This product is only available through a mortgage broker.

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