Top 5 Best Buy-to-Let Mortgages

Landlords Insurance Articles Posted on by Frances Bailey


When taking out a buy-to-let mortgage, you have to research the market carefully. The lenders offering the lowest fees (as low as 2.49%) also require a larger deposit (normally 40%) and may charge high lender initiation fees (these could be as high as £1800 or more). Also bear in mind that the interest rate is at a record low and may rise in future, so it is a good idea to look at a mortgage offering a good fixed term for the first 2 to 5 years.

Who is Currently Offering the Best Rates?

Here are the top 5 buy-to-let lenders of 2014 – and this is the general consensus really:

  1. The Mortgage Works – if you put down a 40% deposit, you can benefit from a 2.49 per cent mortgage rate for the first two years. The lenders initiation fee is 2.5% of the loan amount, so you need to put down rather a large amount to benefit from a low initial rate.
  2. Principality Building Society – According to This is Money, PBS also has a fixed rate buy-to-let mortgage at a slightly higher 2.99 per cent and again with a 40 per cent deposit. Arrangement fees are £999.
  3. The Post Office – again for a two year fixed rate mortgage with a 40% deposit, the Post Office offers a competitive 3,29% fixed rate with the rate being approximately 5% thereafter – the initiation fee is £1,495. For a 25% deposit, you can get a two year fixed rate of 3,49%.
  4. Coventry Building Society – offering a two year fixed rate of 3.35% if you have a 35% deposit. The rate thereafter is approximately 4.8%. Additional fees include a booking fee of £250.00 (paid on application) and an arrangement fee of £1,749.00 which can be added to the mortgage.
  5. TSB – According to, TSB offers a two year fixed rate of 3.69% with a 40% deposit. The subsequent rate is 4.84%. Call TSB directly for more information.
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