Best mortgage deals for buy-to-let investors

Buy-to-let investors often to get mortgages on an interest-only basis, though capital repayment options are also available.

Our roundup of the best deals, below, is based on someone borrowing on an interest-only basis against a £250,000-property for 20 years. Our buyer is paying fees upfront.

You can compare other property prices, repayment periods and loan to value (LTV) ratios at moneywise.co.uk/compare.

75% LTV

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

Post Office, up to 75% LTV, 2.05%
Fixed until 31 January 2019 then reverts to SVR (currently 4.74%)

Post Office has the cheapest two year fixed rate deal charging interest at 2.05% with an upfront product fee of £1,305. Monthly interest only repayments are £320 for the first two years, an annual cost of £4,496. Once the fixed rate expires the SVR of 4.74% kicks in.

Virgin Money, up to 75% LTV, 2.04%
Variable until 1 April 2019 then reverts to SVR (currently 4.74%)

A slightly lower rate but higher overall cost, Virgin Money has a 2.04% fixed rate deal until April 2019, which will cost £319 each month with a £1,709 up-front fee after being offset with £500 cashback. Over the first two years our buyer will pay £4,680 a year. When the SVR comes into play (4.74% variable) payments will increase.

Godiva Mortgages, up to 75% LTV, 2.39%
Variable for term

If you’re willing to take your chances with a variable rate mortgage then Godiva will charge 2.39% for the mortgage term. There is a product fee of £1,999 and monthly payments of £373 – equivalent to £4,593 per year. Godiva Mortgages are only available through a mortgage broker.

60% LTV

Deals are slightly more attractive with a 40% deposit, with rates available for well under 2%, though you’ll need to remember to factor in the up-front fees.

Platform, up to 60% LTV, 1.74%
Fixed until 30 April 2019 then reverts to SVR (currently 5%)

Platform lends at 1.74%, fixed until April 2019, meaning it’ll cost £218 per month to borrow £150,000. However, borrowers will need to pay £1,033 in up-front fees, so the annual cost is £3,127.

Virgin Money, up to 60% LTV, 1.80%
Variable until 1 April 2019 then reverts to SVR (currently 4.74%)

Virgin Money comes out on top of the variable deals. It will lend at 1.80% (Bank of England base rate plus 1.55%) until April 2019, involving repayments of £225 per month with an £709 fees after cashback. That’ll cost £3,055 per year.

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