Best Buy-to-Let Mortgage Rates

A tracker mortgage moves in direct relation to the Bank of England’s Base Rate, set above it by a certain percentage. For example, you might be paying 2% more than the Bank of England Base Rate. When the Base Rate goes up or down, so will your mortgage interest. Tracker rates are again available as introductory rates offered for a certain number of years, though some lenders may offer them for the duration of your mortgage.

When you call us, you can arrange a phone or video appointment with your BTL mortgage adviser or a face-to-face meeting – whatever suits you best. Your adviser will ask you a few questions and, once they have all the information they need, they’ll begin the process of finding you a BTL mortgage for your circumstances and future needs. They’ll also arrange a follow up call to present you with what they’ve found. It may require more than one conversation to gather all the right information, depending on where you are in your BTL property search.

Following the acceptance of your offer, we’ll send you some information which explains all the documents we need to submit to the lender. You’ll be assigned a client relationship manager who’ll check and submit certified copies of your documents; they’ll liaise with both you and the lender. Your BTL mortgage adviser will then submit the fully packaged mortgage application.

The lender will underwrite your application; this basically means they’ll verify the information you’ve provided and review all your documents for themselves. They’ll also instruct a valuation for their purposes on the property you want to buy to make sure there are no significant problems with it.

If the lender is happy with everything they’ve found, they’ll send you a mortgage offer. They’ll also send us a copy.

After you’ve accepted your buy-to-let mortgage offer, you’ll go through the legal part of the process, known as conveyancing. This is where the solicitors/conveyancers draw up contracts and organise the actual, legal purchase of the property. You’ll also need to arrange buildings insurance at this stage, making sure it’s in place from exchange.

Once everything is in place, your conveyancer/solicitor will exchange contracts with the seller’s conveyancer/solicitor. It’s at this point that you put down your deposit and are legally bound to buy the property. You’ll lose your deposit if you pull out after exchange. The purchase completes when money is transferred on an agreed-upon date. As soon as you have a date for completion you’ll know when the property can take tenants, and can therefore start speaking to a letting agent.

When assessing whether you’re eligible for a buy-to-let mortgage deal, lenders assess your potential rental income and look at whether you meet certain criteria. The criteria and requirements you need to meet can vary from lender to lender. Because buy-to-let mortgages are typically seen as riskier for lenders than residential mortgages, they tend to have stricter requirements.

Even the cheapest buy-to-let mortgage interest rates tend to be a little higher than the rates included in mortgage deals on residential properties as buy-to-lets are riskier investments for lenders.

For example, if you have a mortgage on your home and a mortgage on a rental property, but you find yourself able to make only one of these monthly payments, it’s very likely you’ll prioritise the mortgage payment on your home over the one on the rental property.

Therefore, to compensate for the additional risk, buy-to-let lenders set interest rates slightly higher. They also usually require a bigger minimum deposit – usually at least 25%.

You can look at BTL mortgage rates from across the market with our free BTL rate comparison tool above.

Lenders have different rules regarding how many mortgages you can take out with them for buy to let properties. There are also some limits based upon your entire portfolio, including any properties mortgaged with other lenders. Many high street lenders cap the number of buy to let properties you can have while there are other lenders that work with portfolio landlords who own 4 + properties. Find out more about being a portfolio landlord.

You can apply for consent to let on your residential property from your current lender if you only intend on renting it out for a certain period of time – e.g. a year. Alternatively, if you want to let out your current home indefinitely and maybe release some equity from it at the same time to buy a new home, you’ll want to consult a mortgage broker about letting to buy.

It is possible for a first time buyer to take out a mortgage on a buy to let property but there are very few lenders available that offer these kinds of niche products, so you may want to consult a mortgage broker on buy to let mortgages, such as John Charcol.

The majority of BTL lenders offer LTVs (loan-to-values) up to 75%. There are several specialist lenders which offer LTVs up to 80%. You may want to speak to a BTL mortgage adviser if you’re after one of these slightly more specialist mortgages as they tend to be relatively expensive.

You can apply for LTD company BTL mortgages in a limited company name but some lenders will require that the limited company has been set up as an SPV (special purpose vehicle). If you’re setting up a company to purchase an investment property, you should seek professional tax advice to help you decide if it’s the right course of action. Find out more in our LTD Company BTL Guide.

Your buy to let mortgage application could be denied for a number of reasons, including:

• Poor credit – if you have a bad credit score or adverse credit, some lenders will reject your application
• Affordability – lenders will need to see that you have sufficient income or high enough rental yields to cover the mortgage

Property type – not all lenders offer buy to let mortgages on all property types. For example, you could be declined a buy to let mortgage for high-rise flats, ex-council houses, or non-standard construction properties.

Typically, a 25% deposit is required, but some lenders may ask for more depending on your circumstances.

Several factors influence the buy to let mortgage rates you’re offered, including:

• LTVs (loan-to-value): lower LTVs (e.g., 60 – 75%) often qualify for the best buy to let rates
• Rental income: lenders assess affordability based on your expected rental income, typically requiring it to cover at least 125% – 145% of monthly payments
• Credit history: a strong credit profile can secure more competitive rates
• Deposit size: larger deposits reduce lender risk, potentially unlocking better rates

Understanding these factors can help you position yourself for the best BTL mortgage rates.

Yes, but options may be limited, and you may face stricter criteria compared to experienced landlords.

Most are interest-only, which reduces monthly payments but requires repayment of the loan balance at the end of the term.

Some lenders offer products for borrowers with adverse credit, but rates may be higher. Working with a broker can help you find suitable options.