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.

HSBC, up to 75% LTV, 2.79%
Fixed until 30 June 2022 then reverts to SVR (currently 4.75%)

HSBC comes out top of the five-year fixed rate deals. This has a headline rate of 2.79% until 2022. Monthly repayments are £436, representing an annual cost of £5,670. The fees here are a hefty £2,196.

Leek United Building Society, up to 75% LTV, 1.89%
3.3% discount for two years, then reverts to SVR (currently 5.19%)

If you’re willing to take your chances with a variable rate mortgage then the Leek will charge 1.89% for two years before reverting to the SVR. There is a product fee of £1,495 and monthly payments of £295 – equivalent to £4,395 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. 

Accord Mortgages, up to 60% LTV, 1.7%
Fixed until 31 July 2019 then reverts to SVR (currently 5.54%)

This deal has a rate of 1.7%, fixed until 2019, meaning it’ll cost £213 per month to borrow £150,000. However, borrowers will need to pay £1,178 in upfront fees, so the annual cost is £3,143. Remember Platform products are only available through a mortgage broker or financial adviser.

Accord Mortgages, up to 60% LTV, 2.33%
Fixed until 31 July 2022 then reverts to SVR (currently 5.54%)

For a longer fix, this rate is guaranteed until 2022. The total monthly cost is £291 per month, meaning the annual total is £3,941. Borrowers must pay upfront fees of £2,223 with this product. Accord products are 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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