Buy-to-let mortgage rates

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UK buy-to-let mortgage rates

Buy-to-let mortgage rates are a crucial aspect for anyone considering investing in the property rental market. Understanding these rates and how they compare to standard residential mortgage rates can significantly impact your investment decisions and financial planning. This comprehensive guide delves into the intricacies of buy-to-let mortgages, offering insights into the best deals available for houses and flats, the feasibility of securing favourable rates with different credit histories, and the general differences between buy-to-let and residential mortgage rates. Whether you are a seasoned landlord or new to property investment, this guide aims to equip you with the essential knowledge to navigate the buy-to-let mortgage landscape effectively.

What are the current buy-to-let mortgage rates in the UK?

As of January 2024, the buy-to-let mortgage rates in the UK vary based on factors such as the loan-to-value (LTV) ratio and the term of the fixed-rate mortgage. Here’s a general overview of the rates:

    • For a 2-year fixed-rate buy-to-let mortgage, the interest rates are around 3.85% for 60% LTV and approximately 5.59% for 80% LTV.

    • For a 5-year fixed-rate buy-to-let mortgage, the rates are about 4.36% for 60% LTV and roughly 5.15% for 80% LTV.

Additionally, the average two-year fixed-rate mortgage rate for a 60% LTV is 5.62%, and the average five-year fixed-rate mortgage rate for the same LTV is 4.98%.

Please note that these rates are subject to change and may vary depending on specific circumstances and lenders. It’s always advisable to consult with a mortgage advisor or conduct further research for the most current and applicable rates for your situation.

How have buy-to-let rates changed recently?

The buy-to-let mortgage rates in the UK have experienced notable changes recently. As of December 2023, there has been a significant shift in mortgage rates, influenced by various factors such as the Bank of England’s decisions, inflation rates, and global economic events.

Bank of England’s base rate and inflation impact: The Bank of England kept the base rate at 5.25% in December 2023, following a series of rate increases throughout 2023 aimed at curbing inflation. This stabilisation of the base rate, along with a sharp drop in inflation to 3.9%, indicates a potential easing in borrowing costs.

Trends in mortgage rates: The average rates on fixed deals as of January 2024 suggest a plateau in base rate rises, with a two-year fixed deal averaging 5.9% and a five-year fixed deal at 5.3%. These rates are around the highest levels since August 2008. However, there’s a trend towards lower rates, with predictions of further decreases, potentially even to 3% by the end of 2024, particularly for tracker mortgage rates.

Market challenges and responses: The buy-to-let market in 2023 was marked by challenges such as higher stress rates from lenders and significant arrangement fees on reduced-rate mortgage offers. However, there is an expectation of reduced overall borrowing costs, which could result in more appealing mortgage products and inject vitality into the buy-to-let market in 2024.

Improving conditions for borrowers: As of late December 2023, borrowers with small deposits have seen lower mortgage rates and increased product choice. For instance, the average two-year fixed rate at 95% LTV decreased from 7.1% in August to 6.21% in December. Moreover, the government’s extension of the mortgage guarantee scheme until June 2025 provides lenders with opportunities to offer guarantees on riskier portions of mortgages, aiding borrowers with lower deposits.

Overall, the buy-to-let mortgage market has been through a period of fluctuation but is showing signs of stabilisation and potential improvement in terms of rates and borrowing conditions. However, I was unable to find specific data detailing the exact changes in buy-to-let mortgage rates over the recent months or years. For the most accurate and current information, consulting a mortgage advisor or financial expert would be advisable.

Are they going up or down?

Buy-to-let mortgage rates in the UK have been fluctuating, but recent trends suggest a potential decrease in these rates. As of early 2024, the following observations can be noted:

Trend towards lower rates: There has been a shift towards lower mortgage rates. Predictions indicate that rates, which have been hovering around their highest levels since 2008, might decrease further. By the end of 2024 and going into 2025, rates are expected to drop, potentially even to 3%.

Response to economic changes: The Bank of England’s decision to keep the base rate at 5.25% in December 2023, coupled with a sharp drop in inflation, has led to speculation of an easing in borrowing costs. This could lead to a decrease in mortgage rates as early as spring 2024.

Improvement for borrowers with small deposits: Borrowers, especially those with small deposits, have experienced considerably lower mortgage rates compared to a few months ago. This trend is likely to encourage more activity in the market throughout the year.

Anticipated reduction in overall borrowing costs: Experts are anticipating a decrease in the overall cost of borrowing, which could result in more appealing mortgage products, thus potentially reducing buy-to-let mortgage rates further.

In summary, the current trajectory for buy-to-let mortgage rates in the UK is leaning towards a downward trend. This is influenced by various economic factors, including the base rate set by the Bank of England, inflation rates, and the overall economic climate. However, it is important to stay informed with the latest market updates, as these rates can be subject to rapid change due to economic and policy shifts.

What are the predictions for buy to let in 2024?

The predictions for the buy-to-let market in the UK in 2024 are shaped by several factors, including mortgage rates, property prices, rental demand, and overall market trends:

Mortgage lending predictions: UK Finance forecasts a decrease in total gross buy-to-let mortgage lending, dropping from £28 billion in 2023 to £26 billion in 2024. This prediction reflects a more conservative outlook compared to previous years, influenced by factors such as market stability and lender competition.

Improving mortgage rates: While there might not be a return to extremely low borrowing rates, mortgage rates are expected to continue falling in 2024. This is attributed to the Bank of England’s base rate hold, and a likely 100 basis point drop in the bank rate across 2024. However, it’s unlikely these rates will reach the low levels seen during the pandemic.

Property price trends: House prices in the UK are expected to fall between 2% and 4% in 2024, with a recovery to peak 2022 levels predicted to take until 2027. This decline in house prices, coupled with the potential for more affordable mortgages, presents an opportunity for landlords to enter the market or expand their portfolios.

Increased buyer demand: The end of 2023 saw a 19% increase in buyer demand compared to the previous year. The expected lower mortgage rates and house prices in 2024 could further enhance this demand, leading to increased competition among buyers.

Rental market resilience: Despite market uncertainties and rising rates, the UK rental market has shown remarkable stability. JLL forecasts a 5% increase in rents across the UK in 2024, with London expected to experience higher rental growth. The potential decrease in mortgage rates and property prices could foster a balance between tenant demand and rental stock.

A buyer’s market in 2024: The year 2024 is predicted to be a buyer’s market, offering opportunities for landlords and investors. With inflation expected to halve again and the property market showing signs of recovery, there is potential for capital appreciation in the years beyond 2024. This presents a generational opportunity for buyers to secure value at the start of a recovering market.

Overall, the buy-to-let market in 2024 is poised for potential growth and opportunities, driven by an anticipated decrease in mortgage rates and improved borrowing conditions. However, as with any investment, it’s important for investors to conduct thorough research, stay informed about market trends, and seek professional advice tailored to their specific circumstances.

How are rates affected by the Bank of England base rate?

Buy-to-let mortgage rates in the UK are significantly influenced by the Bank of England’s base rate. Here’s how the relationship typically works:

Base rate as a benchmark: The base rate set by the Bank of England serves as a benchmark for lending rates across the UK financial system. When the base rate changes, it generally impacts the interest rates that banks and other lenders charge for their mortgage products, including buy-to-let mortgages.

Direct influence on variable rates: For buy-to-let mortgages with variable interest rates, changes in the base rate can have an immediate and direct impact. If the base rate rises, variable mortgage rates typically increase, and vice versa. This means landlords with variable-rate mortgages will see their mortgage costs change in line with the base rate.

Indirect Impact on fixed rates: For fixed-rate mortgages, the impact is more indirect and less immediate. Lenders take into account the current base rate and their expectations of future rate changes when setting fixed rates. Even though fixed rates don’t change during the fixed-rate period, the rates offered for new fixed-rate mortgages or remortgages will be influenced by the current and anticipated future base rates.

Influence on lender’s funding costs: The base rate affects the cost of funds for lenders. A higher base rate means higher costs for lenders to borrow money, which they often pass on to consumers through higher mortgage rates. Conversely, a lower base rate can lead to lower mortgage rates as the cost of funding for lenders decreases.

Economic signals: Changes in the base rate are often reflective of broader economic policies aimed at controlling inflation or stimulating economic growth. As such, movements in the base rate can signal broader economic trends, which can impact the property market and, by extension, the buy-to-let sector.

Expectation and speculation: The market often reacts not just to changes in the base rate itself but also to expectations and speculation about future changes. This can cause mortgage rates to adjust even in anticipation of a change in the base rate.

In summary, while the Bank of England’s base rate does not dictate mortgage rates, it significantly influences them. Buy-to-let investors need to consider the impact of potential base rate changes on their mortgage costs, especially if they have variable-rate mortgages or are considering new fixed-rate mortgages.

How to compare

Comparing buy-to-let mortgage rates effectively involves several key steps and considerations:

Assess your specific needs: Before comparing rates, understand your specific needs, such as the type of property you’re investing in, your financial situation, and your long-term investment goals. This helps in identifying the most suitable mortgage options.

Compare interest rates: Look at the interest rates offered by different lenders. Both the initial rate and the revert rate (the rate it changes to after the initial period) are important. Remember, a lower rate often means lower monthly payments, but other factors also play a role.

Check loan-to-value (LTV) ratios: Different mortgages offer different LTV ratios. A lower LTV usually means lower interest rates but requires a larger deposit. Determine what LTV ratio works best for your financial situation.

Evaluate fees and charges: Consider arrangement, booking, valuation, and legal fees associated with the mortgage. Sometimes, a lower interest rate might be offset by higher fees.

Fixed vs. Variable Rates: Decide if you prefer a fixed-rate mortgage, where the interest rate stays the same for a set period, or a variable rate, which can change. Fixed rates offer predictability in repayments, while variable rates can offer savings if interest rates drop.

Repayment method: Choose between interest-only and repayment mortgages. Interest-only mortgages have lower monthly payments but require you to pay off the loan in full at the end. Repayment mortgages include interest and part of the capital, resulting in higher monthly payments but paying off the mortgage over time.

Consider additional features: Look for features like overpayment facilities, payment holidays, or the ability to transfer the mortgage to another property. These can offer flexibility depending on your investment strategy.

Use comparison tools: Utilise online comparison tools and mortgage calculators to get an overview of the market. These tools can help you compare different rates and terms side by side.

Professional advice: Consider consulting a mortgage broker or financial advisor. They can provide tailored advice, access to exclusive deals, and help navigate the application process.

Review regularly: Mortgage rates and terms change frequently. Regularly reviewing the market can help you stay on top of the best available deals.

By thoroughly comparing these aspects, you can make an informed decision that aligns with your investment goals and financial situation. Remember, the lowest rate isn’t always the best deal when all factors are considered.

Is now a good time to buy to let?

Determining whether now is a good time to invest in a buy-to-let property depends on various factors, including market conditions, personal financial situation, and investment goals. Here are key considerations to assess the viability of a buy-to-let investment in the current climate:

Mortgage rates: As of early 2024, there’s a trend towards potentially lower buy-to-let mortgage rates, which can improve the affordability of such investments. However, rates can fluctuate, so it’s essential to keep an eye on market trends and forecasts.

Property market conditions: The state of the property market, including house prices and rental demand in your area of interest, is crucial. Some areas might offer high rental yields and strong demand, making them more attractive for buy-to-let investments.

Economic climate: General economic conditions, such as inflation rates, employment levels, and consumer confidence, can impact the property market. A stable or growing economy can be a positive sign for buy-to-let investments.

Regulatory changes: Be aware of recent and upcoming regulatory changes that could affect landlords, including tax regulations, rental laws, and property standards. These changes can impact the costs and responsibilities of being a landlord.

Rental yields: Assess the potential rental income against the property’s purchase price and ongoing costs. High rental yields can make a buy-to-let investment more attractive.

Long-term investment perspective: Buy-to-let is typically a long-term investment. Consider whether you’re prepared for the long-term commitment and potential fluctuations in the property market.

Personal financial situation: Ensure your finances are in order, including having enough for a deposit, understanding the tax implications, and being prepared for possible periods without rental income.

Future goals and risk tolerance: Align the investment with your future financial goals and risk tolerance. Property investment carries risks, including market downturns, rental vacancies, and unexpected maintenance costs.

Diversification: Consider how a buy-to-let investment fits into your wider investment portfolio. Diversification can help manage risk.

Given these considerations, whether it’s a good time for a buy-to-let investment largely depends on your personal circumstances and market conditions in your target area. It’s advisable to conduct thorough research and possibly consult with financial and property experts before making a decision.

What are the risks of buy to let?

Investing in buy-to-let properties comes with several risks that should be carefully considered:

Market value fluctuations: Property prices can fluctuate due to various economic factors. A decrease in property values can lead to a negative equity situation where the mortgage is higher than the property’s value.

Rental income variability: Rental income is not guaranteed. Factors such as tenant turnover, periods of vacancy, and local market conditions can affect your rental yield.

Interest rate changes: If you have a variable-rate mortgage, rising interest rates can increase your mortgage payments, affecting your profitability.

Tax implications: Tax regulations for landlords can impact the profitability of buy-to-let investments. Changes in tax laws, such as reductions in mortgage interest relief, can increase costs.

Maintenance and repair costs: Owning a rental property involves ongoing maintenance and unexpected repair costs, which can be significant.

Tenant issues: Problematic tenants can lead to non-payment of rent, property damage, or legal disputes, all of which can be costly and time-consuming to resolve.

Regulatory compliance: Landlords must comply with various legal requirements, including property standards, safety regulations, and tenant rights. Non-compliance can result in legal action or fines.

Liquidity risk: Property is a relatively illiquid asset compared to other investments like stocks or bonds. Selling a property can be time-consuming and expensive.

Capital gains tax: If you sell the property for a profit, you may be liable for capital gains tax, reducing your overall return on investment.

Economic downturns: Economic recessions or downturns can affect both the rental and sales markets, potentially leading to reduced rental incomes and difficulties in selling properties.

Over-leverage risk: Borrowing too much to fund a buy-to-let investment can lead to financial strain, especially if the property’s income does not cover mortgage payments and other expenses.

To mitigate these risks, thorough research, prudent financial planning, and considering professional advice are essential. It’s also important to have a contingency plan for dealing with potential challenges in your buy-to-let venture.

Fixed vs variable

When choosing between fixed and variable buy-to-let mortgage rates, understanding the differences and implications of each type is crucial:

Fixed-rate mortgages

Stability in repayments: Fixed-rate mortgages lock in an interest rate for a set period, typically 2 to 5 years, offering stability in your monthly payments. This predictability makes budgeting easier.

Protection against rate rises: If the Bank of England’s base rate rises, your interest rate and monthly payments remain unchanged, protecting you from immediate interest rate hikes.

Potentially higher initial rate: Fixed rates can be higher than variable rates at the outset as you’re paying for the security and predictability they offer.

Early repayment charges: There are often significant charges for overpaying or exiting the mortgage before the end of the fixed period.

Reverting to standard variable rate (SVR): After the fixed period, the mortgage usually reverts to the lender’s SVR, which is typically higher. This necessitates remortgaging to avoid higher payments.

Variable-rate mortgages

Rate fluctuation: Variable rates can change, typically in line with the Bank of England’s base rate. This means your mortgage payments can go up or down.

Potential for lower rates: When interest rates are low or falling, you may pay less than you would on a fixed-rate mortgage.

Risk of rising payments: If the base rate rises, your mortgage payments will increase. This uncertainty can make budgeting challenging.

Types of variable rates:

Tracker mortgages: Directly track the Bank of England’s base rate plus a set percentage.

Discount mortgages: Offer a discount off the lender’s SVR for a certain period.

Standard variable rate (SVR): The rate to which most mortgages revert after the end of an initial deal period.

Flexibility: Variable-rate mortgages typically have lower or no early repayment charges, offering more flexibility to remortgage or pay off the mortgage early.

Considerations for buy-to-let investors

Investment horizon: Fixed rates may be preferable for long-term stability, while variable rates could be beneficial for short-term investments.

Risk tolerance: Fixed rates mitigate the risk of rising interest rates, suitable for risk-averse investors. Variable rates can be riskier but potentially cheaper in a declining rate environment.

Market conditions: Anticipated trends in interest rates can influence the choice. In a rising rate environment, a fixed rate can lock in a lower rate.

Financial flexibility: If you anticipate significant changes in your financial situation, the flexibility of a variable rate could be advantageous.

Each type of mortgage has its pros and cons, and the best choice depends on your individual circumstances, market conditions, and personal risk tolerance. It’s advisable to consult a financial advisor or mortgage broker for tailored advice.

What are the disadvantages of tracker mortgages?

Tracker mortgages for buy-to-let properties, while offering certain advantages like potentially lower rates and flexibility, also come with several disadvantages:

Interest rate fluctuations: Tracker mortgages are directly linked to the Bank of England’s base rate. If the base rate rises, your mortgage interest rate – and, therefore, your monthly payments – will increase. This can lead to unpredictability in your financial planning and budgeting.

Budgeting uncertainty: The variable nature of tracker mortgages makes it challenging to predict future mortgage costs. This can be particularly difficult for landlords who rely on rental income to cover mortgage payments, as fluctuating payments can affect cash flow.

Risk of rapid rate increases: If the Bank of England rapidly increases the base rate to counteract inflation or for other economic reasons, landlords could face significantly higher costs over a short period. This could impact the profitability of the investment.

Limited predictability: Unlike fixed-rate mortgages, which offer rate stability for a set period, tracker mortgages provide less predictability. This can make long-term financial planning for your property investment more challenging.

Potential for higher overall costs: If the base rate increases consistently over time, the total amount paid over the mortgage term could be higher than with a fixed-rate mortgage locked in at a lower rate.

Exit penalties: Some tracker mortgages may have early repayment charges or penalties for switching to a different mortgage product or paying off the mortgage early.

Dependency on rental income: If rental income is your primary source for covering mortgage payments, rate increases could put you in a tight financial spot, especially during periods of vacancy or if rental income is lower than expected.

Impact on profit margins: For landlords operating with tight profit margins, even small increases in interest rates can significantly impact the viability and profitability of the investment.

When considering a tracker mortgage for a buy-to-let property, it’s essential to weigh these disadvantages against your investment goals, risk tolerance, and financial situation. Consulting with a financial advisor or mortgage broker can provide personalised guidance and help you make an informed decision.

Discount deals

Discount buy-to-let mortgages offer a discount off the lender’s standard variable rate (SVR) for a set period. They can be attractive to buy-to-let investors for several reasons, but it’s important to understand their features and potential drawbacks:

Features of discount buy-to-let mortgages

Discount rate: The interest rate is a set percentage below the lender’s SVR. For example, if the SVR is 5% and the discount is 1%, the mortgage rate would be 4%.

Variable rate: Like other variable rate mortgages, the rate can go up or down depending on changes to the lender’s SVR.

Set period: The discount is usually offered for a fixed period, often 2-3 years, after which the rate reverts to the lender’s SVR.

Lower initial payments: Initially, these mortgages can offer lower payments compared to other mortgage types, depending on the SVR and the size of the discount.


Lower initial cost: They often have lower initial rates, making them potentially more affordable in the short term.

Potential rate drops: If the lender’s SVR decreases, your mortgage rate could become even lower.

Flexibility: They often come with fewer restrictions and lower early repayment charges than fixed-rate mortgages.


Rate fluctuations: Your payments can increase if the SVR rises. This lack of predictability can make budgeting more challenging.

Reversion to higher SVR: After the discount period ends, the rate reverts to the SVR, which is usually higher. This could lead to a significant increase in mortgage payments.

Dependent on lender’s SVR: Unlike tracker mortgages, which follow the Bank of England base rate, discount mortgages are tied to the lender’s SVR, which can be influenced by factors other than the base rate.

Risk of rising costs: If market interest rates rise, the SVR will likely increase, too, leading to higher mortgage payments.

Early repayment charges: Some deals may have charges for overpayments or for switching mortgage products before the end of the discount period.

Suitability for Buy-to-Let Investors

Risk tolerance: Suitable for investors comfortable with variable interest rates and able to handle potential payment increases.

Short-term strategy: More appealing for those with a short-term investment strategy who plan to remortgage or sell the property after the discount period.

Financial cushion: Best for landlords who have a financial cushion to absorb potential increases in mortgage payments.

Before choosing a discount buy-to-let mortgage, consider your ability to manage potential increases in payments, and compare it with other mortgage options. Consulting with a mortgage advisor can help you make an informed decision based on your specific financial situation and investment goals.

What are the best two-year, five-year, and ten-year fixed-rate buy-to-let mortgage deals?

As of January 2024, here are some of the best fixed-rate buy-to-let mortgage deals available in the UK:

Best 2-year fixed-rate buy-to-let mortgage deals:

    • 60% LTV: Fixed interest rate at 4.54%, reverting to 8.74% with a lender fee of £1,029.

    • 80% LTV: Fixed interest rate at 4.69%, reverting to 8.25% with a lender fee of £999.

    • 90% LTV: Fixed interest rate at 4.99%, reverting to 6.99% with a lender fee of £1,016.

Best 5-year fixed-rate buy-to-let mortgage deals:

    • 60% LTV: Fixed interest rate at 3.94%, reverting to 8.25% with a lender fee of £999.

    • 80% LTV: Fixed interest rate at 4.31%, reverting to 8.25% with a lender fee of £999.

    • 90% LTV: Fixed interest rate at 4.51%, reverting to 6.99% with a lender fee of £1,516.

Best 10-year fixed-rate buy-to-let mortgage deals:

    • 60% LTV: Fixed interest rate at 4.39%, reverting to 6.99% with a lender fee of £999.

    • 80% LTV: Fixed interest rate at 4.59%, reverting to 8.74% with a lender fee of £1,029.

    • 90% LTV: Fixed interest rate at 5.18%, reverting to 7.99% with a lender fee of £999.

These deals assume a purchase price of £350,000 and a mortgage term of 25 years on a repayment basis. Rates and fees vary based on the LTV ratio and the specific lender. It’s important to note that the best deal for an individual will depend on their specific circumstances, including their financial situation and investment goals. Consulting a financial advisor or mortgage broker can provide more personalised guidance.

20% deposit

As of the current market, here are some examples of buy-to-let mortgage rates available for a 20% deposit:

    • 5.15% initially, 5-year fixed, Monthly cost: £1424.07, Product fee: £7,200, Overall cost for comparison: 6.6% APRC.

    • 5.24% initially, 5-year fixed, Monthly cost: £1436.78, Product fee: £10,800, Overall cost for comparison: 8.8% APRC.

    • 5.35% initially, 5-year fixed, Monthly cost: £1452.39, Product fee: £3,600, Overall cost for comparison: 6.6% APRC.

    • 5.44% initially, 5-year fixed, Monthly cost: £1465.22, Product fee: £8,400, Overall cost for comparison: 8.8% APRC.

    • 5.48% initially, 5-year fixed, Monthly cost: £1470.94, Product fee: £995, Overall cost for comparison: 8.1% APRC.

    • 5.55% initially, 5-year fixed, Monthly cost: £1480.98, Product fee: £999, Overall cost for comparison: 6.5% APRC.

    • 5.59% initially, 2-year fixed, Monthly cost: £1486.74, Product fee: £3,495, Overall cost for comparison: 8.1% APRC.

    • 5.64% initially, 5-year fixed, Monthly cost: £1493.94, Product fee: £800, Overall cost for comparison: 8.1% APRC.

    • Another option for 5.64% 5-year fixed, Monthly cost: £1493.94, Product fee: £6,000, Overall cost for comparison: 8.8% APRC.

    • 5.65% initially, 5-year fixed, Monthly cost: £1495.39, Product fee: £0, Overall cost for comparison: 6.5% APRC.

Please note that these rates are subject to change and may vary depending on specific circumstances and lenders. It’s always advisable to consult with a mortgage advisor or conduct further research for the most current and applicable rates for your situation.

90% LTV buy to let mortgages

Securing a 90% loan-to-value (LTV) buy-to-let mortgage is quite challenging in the UK, especially for new investors or those with little experience as landlords. Here are the key points regarding 90% LTV buy-to-let mortgages:

High LTV mortgages are rare: Generally, buy-to-let mortgages require a minimum deposit of around 25%, which means the typical maximum LTV is around 75%.

Limited availability: In rare instances, a buy-to-let mortgage with an LTV as high as 90% may be granted. However, this is usually only available to existing landlords who are transferring their current mortgage to a new deal, often due to a negative equity situation.

Challenges for new investors: For those new to buy-to-let investing, securing a mortgage with such a high LTV can be particularly difficult, as most lenders prefer a lower LTV ratio and may view higher LTV loans as riskier.

Higher interest rates and fees: Mortgages with a 90% LTV generally come with higher interest rates and fees compared to those with lower LTV ratios. This is due to the increased risk perceived by the lenders. Landlords may also face higher lending charges for such properties.

Niche availability: While these high LTV mortgages are not commonplace, they might be more accessible to established landlords. However, the overall availability remains limited, and the terms may not be as favourable as those with lower LTV ratios.

In summary, while 90% of LTV buy-to-let mortgages are not widely available and tend to be restricted to specific circumstances, they are more likely to be accessible to experienced landlords. Prospective investors should carefully consider the higher costs and stricter lending criteria associated with these high LTV mortgages. For more detailed and personalised advice, consulting a mortgage advisor is recommended.

How do discounted variable-rate work?

Discounted variable-rate buy-to-let mortgages offer a reduced interest rate for a set initial period, providing a discount off the lender’s standard variable rate (SVR). This type of mortgage is a form of variable-rate mortgage where the interest rate you pay is lower than the lender’s SVR by a fixed percentage.

For example, if a lender’s SVR is 5% and the discount offered is 1%, your mortgage rate would be 4%. However, it’s important to note that the discount remains constant, but the actual interest rate you pay can fluctuate since it’s tied to the lender’s SVR. If the SVR changes, so does your mortgage rate, but the discount from the SVR remains the same throughout the discount period.

These mortgages often attract buy-to-let investors with their lower initial rates, making them potentially more affordable in the short term. However, they carry the risk of the SVR increasing, which would also increase your mortgage rate, affecting your monthly payments and the overall cost of the mortgage.

After the initial discount period, which typically lasts 2-3 years, the mortgage rate usually reverts to the lender’s higher SVR. This can lead to a significant increase in mortgage payments unless you decide to remortgage to another deal.

While discounted variable-rate mortgages can be beneficial in a declining or stable interest rate environment, they can become costly if the SVR rises significantly. Therefore, they are generally more suited to investors who are financially prepared to handle potential increases in mortgage payments.

For limited companies

Buy-to-let mortgage rates for limited companies generally differ from those offered to individual landlords. These rates are typically higher, reflecting the perceived additional risk that lenders associate with lending to a corporate structure rather than an individual. The exact rates can vary significantly based on several factors, including the lender’s criteria, the loan-to-value ratio, and the overall economic environment.

Limited company buy-to-let mortgages often come with specific conditions and fees that are tailored to corporate borrowers. These can include higher arrangement fees or specific terms related to the property type and rental income. It’s also common for lenders to assess the viability of the mortgage based on the rental income the property is expected to generate, rather than the company’s overall income.

The advantage of getting a buy-to-let mortgage through a limited company lies in the potential tax efficiencies, especially after changes to mortgage interest tax relief for individual landlords. Limited companies can offset mortgage interest against profits, which can be more tax-efficient depending on the individual circumstances of the investors.

It’s important for those considering a limited company buy-to-let mortgage to seek advice from a mortgage broker who specialises in this area. They can provide information on the best available rates and help navigate the more complex application process that typically accompanies corporate mortgage applications. Additionally, consulting with a tax advisor is crucial to understand the full implications and benefits of this approach from a tax perspective.

Rates with bad credit

Obtaining buy-to-let mortgage rates with bad credit can be challenging, as lenders generally view applicants with poor credit histories as higher-risk borrowers. This often means that the mortgage rates available to you may be higher compared to those offered to individuals with good credit. The rationale is that lenders need to offset the increased risk of lending to someone with a history of financial difficulties.

The availability of buy-to-let mortgages for those with bad credit will also depend on the severity and recency of the credit issues. Minor issues like a single missed payment a few years ago might not have as much impact, whereas more serious issues like bankruptcies or CCJs (County Court Judgments) can significantly limit your options.

Lenders will also consider other factors when assessing your mortgage application, such as the size of your deposit, your rental income potential, and any other sources of income you might have. A larger deposit or strong rental income can sometimes offset the impact of a poor credit history.

It’s important to be aware that the range of lenders willing to consider applicants with bad credit for buy-to-let mortgages is smaller. However, there are specialist lenders who cater to this market. Their products might come with different terms and conditions, such as higher interest rates or fees, compared to standard buy-to-let mortgages.

If you have bad credit and are considering a buy-to-let mortgage, it may be beneficial to consult with a mortgage broker. They can provide advice on your specific situation, help you understand your options, and find lenders who are more likely to accept your application. Additionally, working to improve your credit score can also help increase the range of mortgage options available to you in the future.

For ex-pats

Buy-to-let mortgage rates for expats can differ from those offered to UK residents, often reflecting the increased perceived risk associated with lending to individuals living abroad. As a result, expats may face higher interest rates and more stringent lending criteria when applying for a buy-to-let mortgage in the UK.

These mortgages are specifically designed for UK nationals living overseas who wish to invest in the UK property market. The factors influencing the rates include the country of residence of the expat, their credit history, and their income stability, which can be more challenging to verify for lenders.

Expats also typically need a larger deposit compared to UK-based borrowers. The loan-to-value (LTV) ratios for expat buy-to-let mortgages are usually lower, meaning expats need to contribute a higher percentage of the property’s value upfront.

Lenders might also require expats to have a higher minimum income and may conduct more thorough checks on their financial background. The complexity of assessing expat applications, including understanding foreign income and dealing with different currencies, contributes to the higher rates and fees.

The availability of these mortgages varies, and not all lenders offer buy-to-let mortgages to expats. Therefore, it’s often beneficial for expats to seek advice from a mortgage broker who specialises in this area. These professionals can provide access to a broader range of products and help navigate the complexities of the application process.

Additionally, expats should be aware of the potential tax implications in both the UK and their country of residence when investing in UK property, and they may need to seek tax advice to understand their full obligations.

Rates with low deposit

Buy-to-let mortgage rates for those with a low deposit are generally higher than for those who can put down a larger deposit. This is because a lower deposit typically means a higher loan-to-value (LTV) ratio, which increases the risk for the lender. The more equity you have in the property (i.e., the larger your deposit), the less risk the lender faces. Therefore, lenders charge higher interest rates to mitigate the risk associated with higher LTV mortgages.

For buy-to-let properties, a ‘low deposit’ often means anything below 25% of the property’s value, as most buy-to-let mortgages require at least a 25% deposit. However, some lenders may offer buy-to-let mortgages with a 20% deposit, which would be considered a higher LTV mortgage in this market.

Additionally, the availability of low-deposit buy-to-let mortgages is more limited, and the criteria for approval can be stricter. Lenders will closely assess your creditworthiness, the rental income potential of the property, and your experience as a landlord, especially if you are looking for a high LTV mortgage.

It’s also worth noting that with a lower deposit, the overall costs of the mortgage can be higher, not just because of the increased interest rates, but also due to potentially higher fees and the larger loan amount that needs to be repaid.

If you are considering a buy-to-let mortgage with a low deposit, it might be beneficial to consult with a mortgage broker. They can provide advice on your specific situation, help you understand your options, and find lenders who are willing to consider higher LTV mortgages. Additionally, it’s important to carefully consider your ability to manage the mortgage repayments, especially if interest rates rise, as this could significantly impact your monthly costs.

For first-time investors

Buy-to-let mortgage rates for first-time investors can sometimes be higher than those for experienced landlords, reflecting the increased perceived risk from the lender’s perspective. First-time investors are those who have never owned or managed a rental property before. Their lack of experience in property management and rental income generation can make lenders cautious.

Since first-time investors don’t have a track record of managing rental properties, lenders may see them as higher risk, leading to stricter lending criteria and potentially higher interest rates. The terms and availability of these mortgages can also vary compared to those offered to experienced landlords.

In addition to the interest rates, first-time investors should also be aware of other factors when seeking a buy-to-let mortgage, such as higher deposit requirements, stringent credit checks, and the property’s potential rental income. Lenders typically require a larger deposit from first-time buy-to-let investors — often around 25% or more of the property’s value.

Moreover, lenders will closely examine the viability of the investment, including the location of the property, its condition, and the expected rental yield. They will also assess the investor’s personal financial situation, including income, credit history, and overall financial stability.

First-time investors are advised to conduct thorough research and possibly consult with a mortgage broker who specialises in buy-to-let mortgages. A broker can offer guidance tailored to the unique challenges faced by first-time investors, help compare different mortgage products, and navigate the application process. Additionally, it’s important for first-time investors to understand the responsibilities and legal obligations of being a landlord, including property maintenance, tenant rights, and tax implications.

What are the pros and cons of buy-to-let investments in 2024?

As of 2024, buy-to-let investments come with their own set of pros and cons, shaped by the current economic landscape, regulatory environment, and housing market trends:

Potential for steady rental income: A well-located property can provide a steady stream of rental income, which can be a significant source of passive income.

Capital appreciation: Over time, property values often increase, offering the potential for capital gains upon sale.

Leverage: Using mortgage financing, investors can purchase a property with a relatively small initial capital outlay (the deposit), leveraging their investment.

Inflation hedge: Real estate is often considered a good hedge against inflation, as property values and rents typically rise with inflation.

Tax deductions: Investors can deduct certain expenses related to owning and managing the property, such as mortgage interest, maintenance costs, and property management fees.

Control over investment: Unlike stocks or bonds, investors have more control over their real estate investments and can actively work to increase their value through improvements and effective management.

Interest rate risk: If you have a variable-rate mortgage, rising interest rates can increase your costs. Even fixed-rate mortgages will eventually revert to variable rates or need to be refinanced.

Maintenance and management: Owning a rental property requires ongoing maintenance and active management, which can be time-consuming and costly.

Regulatory changes: The buy-to-let market is subject to regulatory changes, including tax reforms and tenant rights laws, which can impact profitability.

Vacancy risk: Periods without tenants mean no rental income, yet mortgage payments and maintenance costs continue.

Capital risk: Property values can fluctuate, and if they fall, you could end up owing more than the property is worth, particularly if leveraging heavily.

Liquidity: Real estate is not a liquid asset. Selling a property can take time, and there are significant costs involved in both buying and selling.

Complex financial product: Buy-to-let mortgages are more complex than standard residential mortgages, often coming with higher interest rates and stricter lending criteria.

The decision to invest in a buy-to-let property in 2024 should be based on a thorough analysis of these factors, along with a consideration of your personal financial situation, investment goals, and risk tolerance. Additionally, consulting with financial and real estate professionals can provide valuable insights and guidance tailored to your specific circumstances.

Is the government going to change buy to let rules?

As of now, there were no specific announcements or confirmed plans from the UK government regarding changes to buy-to-let rules in 2024. However, it’s important to note that the government’s stance on housing, taxation, and landlord regulations can evolve, often influenced by broader economic conditions, housing market dynamics, and political considerations.

In recent years, the buy-to-let sector has seen various changes, such as adjustments in tax relief, stamp duty surcharges, and stricter lending criteria, reflecting the government’s approach to the housing market and landlord regulations. These changes were aimed at addressing issues like housing affordability and tenant rights.

Landlords and potential investors in the buy-to-let market should stay informed about potential regulatory changes that could impact their investments. These could include alterations in taxation, changes in tenant rights laws, energy efficiency requirements, or shifts in the overall approach to the housing market.

It’s advisable for those involved in or considering buy-to-let investments to regularly check for updates from official government sources, follow housing market news, and, where necessary, consult with property and legal experts to understand the implications of current and potential future regulations on their investments. Keeping abreast of these changes is crucial for effective long-term planning and compliance in the buy-to-let sector.


Buy-to-let mortgage calculators are online tools designed to help prospective landlords and property investors estimate their potential mortgage costs. These calculators typically require you to input details such as the property’s price, the amount of deposit you plan to put down, the mortgage interest rate, and the term of the mortgage.

Once you provide this information, the calculator computes an estimate of your monthly mortgage payments. This can be particularly useful for planning and budgeting, as it gives you an idea of the ongoing costs associated with a buy-to-let property. Some calculators also allow you to factor in additional costs, such as property management fees, maintenance costs, and potential rental income, to give a more comprehensive overview of your investment.

It’s important to remember that the figures provided by these calculators are estimates and the actual costs may vary. Interest rates can fluctuate, and other variables can also impact the final cost of a mortgage. Additionally, these calculators often do not account for changes in tax laws or other external factors that could affect the profitability of a buy-to-let investment.

When using a buy-to-let mortgage calculator, it’s advisable to approach several lenders or consult with a mortgage broker to get a more accurate picture of the mortgage products available to you and to understand the full implications of a buy-to-let investment.

Impact of rising interest rates on buy to let

The impact of rising interest rates on buy-to-let properties in the UK is multifaceted, affecting landlords, tenants, and the overall housing market. When interest rates rise, the cost of borrowing increases, which directly impacts landlords who have buy-to-let mortgages with variable or tracker rates. These landlords face higher monthly mortgage payments, which can significantly reduce their rental income profitability.

Landlords with fixed-rate mortgages are initially shielded from rate increases during their fixed-rate period. However, upon remortgaging, they may face higher rates, affecting their long-term investment returns. This situation could lead landlords to increase rent to maintain their profit margins, directly impacting tenants who might struggle with higher rental costs.

For those looking to enter the buy-to-let market, higher interest rates mean more expensive mortgage products, which could deter new investments. This situation can lead to a reduced supply of rental properties, potentially driving up rental prices further, especially in areas with high demand for rental accommodation.

Additionally, rising interest rates can cool down the housing market as buying property becomes more expensive. This cooling effect can lead to a slowdown in house price growth, which might impact landlords’ decisions about purchasing additional properties or selling existing ones.

Overall, the ripple effects of rising interest rates extend beyond immediate financial impacts, influencing broader trends in the housing market and the economy. Landlords must adapt their strategies, considering potential rent increases, the viability of their investments, and the balance between maintaining fair rental prices and achieving desired returns.

What are the factors that affect rates?

Several factors influence buy-to-let mortgage rates, which determine how much landlords will pay for borrowing funds to purchase rental properties. Understanding these factors can help landlords and investors make informed decisions about their property investments. Here are the key factors:

Bank of England base rate: The base rate set by the Bank of England significantly influences interest rates for all types of mortgages, including buy-to-let. When the base rate rises or falls, lenders typically adjust their rates accordingly.

Lender’s own funding costs: Banks and mortgage lenders obtain their funds at a certain cost, which can fluctuate based on market conditions. These costs are passed on to borrowers through the interest rates charged on mortgages.

Loan-to-value (LTV) ratio: The LTV ratio, which is the percentage of the property’s value that is mortgaged, plays a crucial role. Generally, a higher LTV ratio (meaning the borrower is taking a larger loan relative to the value of the property) leads to higher interest rates due to the increased risk perceived by the lender.

Credit score and financial history of the borrower: Lenders assess the borrower’s creditworthiness to gauge the risk of lending. A better credit score and stable financial history typically result in lower interest rates, as they indicate lower risk.

Rental coverage ratio: This is the ratio of the rental income the property is expected to generate versus the mortgage payments. Lenders use this to assess whether the property can generate enough income to cover the mortgage payments. A higher rental coverage ratio might lead to more favourable rates.

Type of mortgage product: The type of mortgage (fixed-rate, variable-rate, tracker, interest-only, etc.) affects the interest rate. Fixed-rate mortgages often have higher initial rates than variable rates but provide payment stability.

Property type and location: The type of property and its location can influence the risk assessment and, thus, the interest rate. Properties in high-demand or stable areas might attract lower rates.

Economic conditions and market demand: The broader economic environment and the demand for buy-to-let mortgages in the market can impact rates. In a strong economy, rates might be higher due to increased demand, and vice versa.

Regulatory changes and Government policies: Regulations and policies related to the housing market and lending practices can influence mortgage rates. For example, changes in capital requirements for banks can lead to adjustments in interest rates.

Inflation expectations: Inflation affects the purchasing power of money. Higher expected inflation can lead to higher interest rates, as lenders will want to ensure that the value of their returns is not eroded by inflation.

These factors collectively contribute to the determination of buy-to-let mortgage rates, and they can vary over time due to changes in economic conditions, regulatory policies, and market dynamics.

Top tips for getting a good buy-to-let mortgage deal

Securing a good buy-to-let mortgage deal involves careful planning and consideration of various factors. Here are some top tips to help you navigate the process and find a favourable mortgage deal:

Improve your credit score: A strong credit history makes you a more attractive borrower to lenders. Ensure you have a good credit score by paying off existing debts and managing your finances responsibly.

Save for a larger deposit: The more you can put down as a deposit, the lower your loan-to-value (LTV) ratio will be. A lower LTV often results in more competitive mortgage rates, as it reduces the lender’s risk.

Research the market thoroughly: Understand current market trends, including interest rates and rental yields in your chosen area. Keep abreast of economic factors and policies that could influence mortgage rates.

Compare different mortgage products: Look at various mortgage options, including fixed-rate, tracker, and interest-only mortgages. Each has its benefits and drawbacks, depending on your financial situation and investment strategy.

Consider the rental yield: Lenders will assess the potential rental income of the property to determine your ability to cover mortgage payments. Choose a property that can generate sufficient rental income relative to its cost.

Use a mortgage broker: A mortgage broker can offer valuable insights and access to a range of mortgage products that you might not find on your own. They can help tailor a mortgage deal to your specific needs.

Prepare a solid business plan: Presenting a well-thought-out business plan to your lender can demonstrate your seriousness and preparedness as an investor, possibly swaying the decision in your favour.

Understand all Costs involved: Be aware of additional costs, such as property maintenance, insurance, and potential periods without rental income, and factor these into your calculations.

Maintain a healthy financial buffer: Have enough savings to cover mortgage payments during void periods or when unexpected expenses arise. This financial prudence can be favourable in the eyes of lenders.

Stay informed about tax implications: Understand the tax implications of owning a buy-to-let property, including stamp duty and income tax on rental earnings, as these can affect your overall profitability.

Negotiate with lenders: Don’t hesitate to negotiate the terms of the mortgage. Lenders may have some flexibility, especially if you have a strong application.

Consider the long-term prospects: Choose a property and mortgage deal that aligns with your long-term investment goals. Short-term gains should not overshadow the long-term sustainability of your investment.

By following these tips, you can increase your chances of securing a buy-to-let mortgage deal that is not only cost-effective but also aligns with your investment objectives and financial capabilities.


How do buy-to-let mortgage rates compare to standard residential mortgage rates?

Buy-to-let mortgage rates are typically higher than standard residential mortgage rates. This difference is primarily due to the perceived higher risk associated with lending for investment properties. Lenders consider buy-to-let mortgages riskier because rental income can fluctuate, and properties may occasionally be vacant. Additionally, buy-to-let properties are more likely to be sold in a falling market. These factors contribute to higher interest rates to offset the increased risk for the lender. Furthermore, lenders often require larger deposits for buy-to-let mortgages, and there are differences in the way affordability is assessed, with a focus on potential rental income rather than just the borrower’s income.

What's the cheapest buy-to-let mortgage I can get on a flat?

The cheapest buy-to-let mortgage you can get on a flat depends on various factors, such as the loan-to-value (LTV) ratio, your credit score, the rental income potential of the flat, and current market conditions. Typically, lower LTV ratios result in better interest rates, as they present less risk to the lender. It’s important to shop around and compare offers from different lenders. Using comparison websites or consulting with a mortgage broker can help you find the most competitive rates. Keep in mind that the cheapest rate may not always be the best option for your specific needs, so consider other mortgage terms, fees, and flexibility offered by the lender.

Can I get a buy-to-let mortgage with a 75% LTV?

Yes, you can get a buy-to-let mortgage with a 75% LTV. This is a common LTV ratio for buy-to-let mortgages in the UK. At this ratio, you are borrowing 75% of the property’s value, and you will need to provide a 25% deposit. Mortgages with a 75% LTV are widely available from various lenders, including banks, building societies, and specialist mortgage providers. The interest rates and terms offered will depend on factors such as your credit history, the property type, and its rental income potential. It’s advisable to compare different mortgage products and possibly consult a mortgage advisor to find the best deal for your situation.

What's the cheapest buy-to-let mortgage I can get on a house?

The cheapest buy-to-let mortgage you can secure for a house will vary depending on several factors, including the loan-to-value (LTV) ratio, your credit history, the expected rental income, and the current market conditions. Generally, mortgages with lower LTV ratios have lower interest rates, as they present less risk to lenders. The best way to find the cheapest mortgage is to compare offers from multiple lenders. This can be done using online comparison tools or by consulting with a mortgage broker. Remember, the lowest interest rate might not always be the best overall deal; other factors, such as fees, the flexibility of the mortgage, and the lender’s service, should also be considered.

Is a buy-to-let mortgage rate cheaper than a residential mortgage rate?

Typically, buy-to-let mortgage rates are higher than residential mortgage rates. This is due to the higher perceived risk associated with buy-to-let investments. Lenders view buy-to-let properties as riskier because rental incomes can be unpredictable and properties may occasionally be vacant, posing a higher risk of default. Furthermore, the additional costs and fees associated with buy-to-let mortgages also contribute to their higher rates compared to residential mortgages.

Can I get a good buy-to-let mortgage rate with bad credit?

Obtaining a good buy-to-let mortgage rate with bad credit can be challenging but not impossible. Lenders usually prefer borrowers with good credit scores as it indicates financial stability and a lower risk of default. However, there are lenders who specialise in mortgages for individuals with adverse credit histories. The key is to shop around and compare various lenders who offer buy-to-let mortgages for those with less-than-perfect credit. It’s important to note that these mortgages might come with higher interest rates and require a larger deposit to offset the lender’s increased risk. Additionally, improving your credit score before applying, providing a larger deposit, and demonstrating a strong rental income potential can help in securing a better mortgage rate.

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