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Buy to Let Mortgage Rates

Because buying property to rent is an investment, it makes sense to get the very best rates possible on your buy to let mortgage. Getting the lowest possible rates on your mortgage can significantly improve the amount you make back from your rental property or properties.

To find the best deals on buy to let finance from across the market, it is highly advisable to speak to a mortgage advisor who can guide you to the best value finance that matches your requirements. We also offer a free mortgage calculator so you can compare top deals from all the leading lenders.

Types of Buy to Let mortgage

How much you pay each month on your mortgage will depend on whether you choose an interest only mortgage or a capital and interest mortgage. This also affects how much you will have left to pay as a lump sum when the mortgage term ends.

With an interest only buy to let mortgages you just pay the interest due on your mortgage each month and pay the capital off in one go when the mortgage ends.

With a capital and interest mortgages you pay the interest each month, plus some of the capital. This allows you to reduce or entirely eliminate the capital owed by the time the mortgage ends.

Which option you go for depends whether you would rather pay more each month and own the house outright by the time the mortgage ends or pay less monthly but have to take out a new mortgage, sell the property or find other means to pay off the mortgage when it ends.

How interest rates on Buy to Let mortgages are calculated

There are various different things that lenders take into account when working out your interest rate. In general, the following will have a significant impact:

  • How much you borrow
  • How long you choose to repay over
  • Your loan to value (LTV) ratio i.e. the percentage of your property’s value that you borrow
  • What kind of mortgage you choose

Lending criteria for Buy to Let mortgages

Which mortgage products you are eligible for, and therefore which interest rates you can access, will depend on how well you match various providers lending criteria. Different lender have their own personal requirements, but there are some common criteria most lenders use.

  • Do you own your own home?
  • Do you earn over £25,000 per year?
  • Are you 25 or over?
  • Will you be under 70 when the mortgage term ends?
  • Do you have a good credit history?

If you meet these requirements, you have a good chance of being able to access buy to let finance from most lenders. However, even if you do not match these common criteria you may still be able to borrow the money you need. A good mortgage advisor will be able to guide you to those lenders most likely to give you the money you need whatever your personal circumstances.

Compare Buy to Let mortgage rates

Using our free mortgage calculator you can quickly and simply compare mortgage products from dozens of lenders so you can see which offers the best value for you. To try it out, just follow the link and pick “Buy to let” in the “Reasons for mortgage field”.

Latest news

Cost of fixed rate mortgages have started to increase as Bank of England rate rise looms

A number of high street banks have started to increase their mortgage rates. The reason for this is that banks are having to pay more to access the funds they lend out to UK homeowners.

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mortages.direct is a trading style of Fair Investment Company.

We've been comparing and recommending mortgage deals for many years so you can trust you're in good hands.