Best Buy to Let Mortgage Rates

Use our free and easy best buys comparison tool below to compare the best buy to let mortgage rates and remortgage buy to let deals from across the market.

The Financial Conduct Authority does not regulate some forms of BTL mortgages, such as where the property is purchased for investment and rented out. Some BTL mortgages such as consumer BTL mortgages come under FCA regulation.

These are indicative figures only and may not represent all the costs associated with each product. For more information speak to one of our buy to let mortgage advisors on 0330 433 2927.

A buy to let or buy to rent mortgage is a type of mortgage specifically for properties that are owned or purchased with the intention of renting them out.

They're often set up on an interest only mortgage basis, which means you only make monthly interest payments each month. The outstanding loan balance - i.e. the amount you borrow - doesn't reduce and is paid back at the end of the mortgage term via a suitable repayment vehicle, usually the sale of the property.

If you rent out a property on which you only have a residential mortgage, you’ll be in breach of your mortgage agreement which could put your property at risk of repossession. To rent out your property without breaching your mortgage agreement you'd have to either obtain consent to let from your existing lender or switch to a buy to let mortgage. Find out more about converting your residential mortgage to buy to let.

You can find out more in our Complete Buy to Let Guide. 

Buy to let mortgages are designed for people who want to buy a property and rent it out rather than live in it themselves. It’s an investment. Therefore finding the right buy to let deal is critical if you want to make the most of your financial venture - otherwise, what’s the point?

As an independent mortgage broker with over 50 years of experience, we're perfectly placed to advise you and find the best buy to let mortgage that matches your property needs. John Charcol has access to the whole market and we're experienced in finding the most suitable mortgage product for less conventional situations. Contact our experts today to get the best buy to let mortgage deal for you. 

Most buy-to-let mortgages are interest only. This means that you only pay the interest back each month and you settle the mortgage balance at the end of the mortgage term, usually by selling the property. There are several different rate options when it comes to interest only buy to let mortgages, including:

• Standard variable rate (SVR) - each lender has its own standard variable interest rate. This rate often moves in line with the Bank of England’s Base Rate, but it doesn’t have to. The lender can decide when it goes up or down. The SVR is usually the highest interest rate and it can change without warning. You wouldn’t take out an SVR mortgage deal, but would be transferred onto your lender’s SVR when your introductory (fixed, discount or tracker) rate period ends. You would typically avoid going onto your lender’s more expensive SVR by remortgaging when your introductory rate is due to end
• Fixed rate - this is usually an introductory deal in place for a set number of years at the start of your mortgage. The fixed interest rate will stay the same for that period, usually 2, 3 or 5 years. After this, you’ll be moved onto your lender’s SVR, which will usually be higher, unless you get a BTL remortgage
• Discount rates - this is another introductory offer, where you will pay a set percentage less than your lender’s SVR. For example a 2% discount rate on a 5% SVR would mean that you pay 3% interest. This can go up and down in line with the SVR
• Tracker - 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

Choosing the best buy to let mortgage rate for your situation isn't the only aspect of buy to let mortgages you need to consider. You can also look at whether you want a buy to let loan for private landlords - as is the focus of this page - or a buy to let mortgage via a limited company. Both serve the same purpose, but a limited company buy to let mortgage is in the name of a limited company - not your personal one - meaning it can offer certain tax benefits for some people.