Best Buy to Let Mortgage Rates Compare Deals

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.

You can even specify if you want to look at a certain type of buy to let mortgage only, for example you can limit you search to the best buy to let fixed mortgages, variable rates, interest only vs repayment, and more.

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.

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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.

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What Is a Buy to Let Mortgage?

A BTL (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. 

Why Is Getting the Best BTL Mortgage Rates Essential?

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 best 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. 

How Much Can I Borrow on a Buy to Let Mortgage?

The amount you can borrow and the rates available to you will depend on the size of your deposit and your expected rental income, as this will determine how much you’ll be able to afford in monthly interest payments.

Use our buy to let mortgage calculator to estimate how much you could borrow.

John Charcol Expert Tip - December 2024

"BTL mortgages, including competitive BTL rates and options for BTL remortgages, are specifically designed for individuals looking to invest in property and generate rental income. Whether you're a first time landlord or expanding your property portfolio, BTL mortgages offer flexible terms that align with your investment strategy. With the potential for long term financial gains, investing in a BTL property can be a smart move. Navigating the various requirements and responsibilities of being a landlord may seem complex, but with expert guidance, you can secure the right BTL mortgage and maximize the return on your investment."

- Mortgage Technical Manager Nicholas Mendes, CeMAP qualified

WHAT ARE THE DIFFERENT TYPES OF BUY TO LET MORTGAGES in the UK?

Most buy to let mortgages in the UK 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:

  • SVR (standard variable rate) deals - 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 buy to let mortgages - 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 rate buy to let mortgages - 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
  • Buy to let tracker 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

Limited Company Buy to Let Mortgages

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.

Buy to Let Mortgage Criteria and Considerations

Rental Income

Your adviser will ask you for a rental income estimation when they first gather information about your circumstances and requirements for a buy to let mortgage. A rental income estimation is basically how much you think you’ll be able to charge in monthly rent on a property. You can ask estate agents for rental income estimates when you view properties. It’s also worth looking online at the rent for similar properties in the area you want to purchase. You need to provide your adviser with a rental income estimation as the lender will use your expected rental income to calculate what you can afford in monthly interest payments when they put together your DIP (Decision in Principle). 

They usually ask for rental income to be between 125% and 145% of the monthly interest payments and often conduct a “stress test” assuming an interest rate of around 7% to make sure you’ll be able to cover any fluctuations in interest rates or surprise expenses. Buy to let lenders will still look at your personal income to check you would be able to cover any future repairs or periods when the property is vacant.

Deposit

Rental property mortgages have higher interest rates and usually require bigger minimum deposits than residential mortgages - 25% compared to 5% or 10% - to compensate for the additional risk taken up by the lender.

Age

Minimum and maximum ages for buy-to-let lenders vary but a few will accept applications from people as young as 18 years old and some will go as high as 85 years old. There are even a handful that don’t have a maximum age limit.

Borrower Status

You can be a first time buyer, first time landlord, experienced landlord or professional landlord. Which lender you can use depends on individual lenders’ preferences, but typically first time buyers will find fewer lenders willing to lend on buy-to-let properties. Not all lenders accept large portfolios either.

Location of Borrower's Residence

Buy to let mortgage lenders normally require that borrowers live in the UK. There are some lenders that accept expat applicants, but these underwriters may have slightly stricter overall criteria.

Credit History

A poor credit history can make it difficult to obtain a mortgage, especially one at a particularly competitive rate. There are some lenders that are more flexible than others but these often require that you use a buy to let broker like John Charcol.

Tax

Landlords are taxed differently from private residential property owners. You’ll pay additional Stamp Duty when you buy your property and Income Tax on rental income you receive from your tenants. It’s also worth nothing that you might have to pay Capital Gains Tax if you eventually sell the buy to let property.

Should I Use a Buy to Let Mortgage Broker?

Buy to let mortgages can be complicated and it’s the job of a mortgage broker like John Charcol to find you a suitable product.

Why Is It So Important to Use a Broker for a Buy to Let Mortgage?

  • It’s not always easy to find the right information about the potential property types or the buy to let mortgage affordability criteria you need to meet online. We know the requirements for each lender and will look at your entire situation and future needs, so we can advise you accordingly
  • Some lenders require that you use a mortgage broker and won’t accept applications directly from applicants, which means we can give you access to more lenders and better buy to let mortgage rates
  • Buy to lets can be particularly complex, especially if you’re a new landlord. As an experienced buy to let mortgage broker we make sure you understand how these mortgages work and exactly what you’re applying for
  • The adviser assigned to your case will do all the hard work for you, ensuring you get the best deal for your property

Why Compare Buy-to-Let Mortgage Rates?

When searching for the best BTL mortgage rates, comparing options is essential to maximise your investment potential. By evaluating multiple lenders, you can:

  • Save Money: Find the best buy-to-let deals with lower interest rates.
  • Tailor Your Mortgage: Choose between fixed, variable, or tracker options that suit your financial goals.
  • Ensure Affordability: Match the loan-to-value (LTV) ratio and monthly repayments to your rental income projections.

Using comparison tools or working with a broker ensures you secure the most suitable BTL mortgage for your circumstances.

How Do Buy-to-Let Mortgages Work?

A buy-to-let mortgage (BTL mortgage) is designed for investors purchasing properties to rent out. Key features include:

  • Interest-Only Repayments: Many BTL mortgages are interest-only, meaning you repay the loan balance at the end of the term, often through selling the property.
  • Higher Deposits: Typically require a minimum deposit of 25%, although some lenders may ask for more.
  • Affordability Assessment: Lenders calculate affordability based on expected rental income, usually requiring it to cover 125%-145% of monthly interest payments.

Whether you’re a first-time landlord or expanding your portfolio, understanding how buy-to-let mortgages work is crucial for making informed investment decisions.

How to Find the Best Buy-to-Let Rates

Securing the best buy-to-let rates can significantly enhance the profitability of your property investment. Here’s how:

  • Compare Deals: Use tools to compare buy-to-let mortgages, filtering by fixed or variable rates, LTV ratios, and introductory rate periods.
  • Work with a Broker: Brokers can provide access to exclusive BTL mortgage deals and tailor recommendations based on your financial situation.
  • Monitor Market Trends: Keep an eye on the Bank of England’s base rate, which influences variable and tracker rates.

Finding the best BTL rates means balancing affordability with long-term financial goals.

Types of Buy-to-Let Mortgages

When choosing a buy-to-let mortgage, it’s essential to understand the different options available:

  • Fixed-Rate Mortgages: Offer consistent monthly payments over a fixed period (e.g., 2, 5, or 10 years). Ideal for those who prefer stability.
  • Tracker Mortgages: These follow the Bank of England’s base rate, meaning your payments may increase or decrease with rate changes.
  • Variable-Rate Mortgages: Rates fluctuate based on the lender’s standard variable rate (SVR), which can change at their discretion.
  • Interest-Only Mortgages: The most common type for landlords, where only the interest is paid monthly, with the loan repaid at the end of the term.

Choosing the right mortgage depends on your risk tolerance, investment strategy, and rental income expectations.

Benefits of Buy-to-Rent Mortgages

Investing in property with a buy-to-rent mortgage offers several advantages:

  • Rental Income: Provides a steady income stream that can cover mortgage payments and generate profit.
  • Long-Term Growth: Property values often appreciate over time, offering potential capital gains.
  • Tax Efficiency: When structured correctly, landlords can benefit from tax relief on expenses like mortgage interest or maintenance.

By securing the best BTL mortgage rates, you can enhance the return on your investment and build a sustainable portfolio.

What Affects Buy-to-Let Mortgage Rates?

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

  • Loan-to-Value Ratio (LTV): 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.

Should I Use a Broker to Compare Buy-to-Let Mortgages?

While you can compare buy-to-let mortgages independently, using a broker offers key advantages:

  • Access to Exclusive Deals: Brokers often have access to mortgage products not available directly to consumers.
  • Expertise: They can navigate complex affordability criteria and recommend tailored solutions.
  • Time-Saving: Brokers handle the application process, ensuring accuracy and efficiency.

Working with a broker simplifies finding the best BTL mortgage rates and ensures your application meets lender requirements.

How to Maximise Your Buy-to-Let Investment

To make the most of your property investment, consider these tips:

  • Secure the Best Rates: Use tools to compare buy-to-let mortgages or work with a broker for access to exclusive BTL mortgage deals.
  • Choose High-Yield Properties: Focus on areas with strong rental demand and competitive property prices.
  • Plan for Costs: Factor in maintenance, taxes, and potential void periods when calculating profitability.

A well-planned strategy combined with the best buy-to-let rates ensures long-term financial success.

Buy-to-Let Remortgages

Remortgaging a buy-to-let property can help you:

  • Reduce Costs: Secure a lower interest rate by switching to a new lender offering best buy-to-let rates.
  • Release Equity: Use the property’s increased value to fund additional investments.
  • Avoid SVR Penalties: Move to a new deal before your lender’s standard variable rate kicks in.

By comparing options for buy-to-let remortgages, you can optimise your portfolio and reduce overall costs.

Buy-to-Let Mortgage FAQs

Q: What deposit do I need for a buy-to-let mortgage?
Typically, a 25% deposit is required, but some lenders may ask for more depending on your circumstances.

Q: Can I get a buy-to-let mortgage as a first-time buyer?
Yes, but options may be limited, and you may face stricter criteria compared to experienced landlords.

Q: Are buy-to-rent mortgages interest-only?
Most are interest-only, which reduces monthly payments but requires repayment of the loan balance at the end of the term.

Q: Can I apply for a BTL mortgage with poor credit?
Some lenders offer products for borrowers with adverse credit, but rates may be higher. Working with a broker can help you find suitable options.

Why John Charcol for Buy-to-Let Mortgages?

At John Charcol, we specialise in helping landlords find the best buy-to-let mortgage rates for their needs. Here’s why clients trust us:

  • Whole-of-Market Access: We search the entire market to find competitive rates tailored to your circumstances.
  • Experienced Brokers: With over 50 years of experience, we guide you through every step of the process.
  • Tailored Solutions: Whether you’re a first-time landlord or an experienced investor, we ensure your mortgage aligns with your goals.

Contact us today to compare buy-to-let mortgages and secure the best BTL rates available.

How Can John Charcol Help Me Get a Buy to Let Mortgage?

We Take Care of Everything

We manage all aspects of your application, including liaising with the lender throughout the entire process.

We're Highly Recommended

As an award-winning broker we have negotiated hundreds of successful buy-to-let mortgage applications.

We Give Personal, Expert Advice

Buying a property at auction? Got a complex income structure? Our advice is tailored to your situation.

In fact, we can even help you organise life insurance and conveyancing in addition to finding you the right mortgage. Get quotes below!

Get a Life Insurance Quote

Life insurance protects you, your family and your home, including if you're unable to meet your financial obligations due to illness, accident or even death. Get a quote now.

Get a Conveyancing Quote

If you're purchasing a property, you'll need a conveyancer. Luckily, John Charcol can refer you to an experienced conveyancer that suits your budget and timeline.

Buy to Let Mortgage Deal Process

Below are the main steps you’ll take to find the best buy to let mortgage rate - from quote to completion.

1. Meeting with Adviser and Mortgage Research

When you call us, you can arrange a phone or video appointment with your BTL mortgage advisor 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.

2. Decision in Principle

Once you’re happy with their recommendation, they’ll go about securing your DIP (Decision in Principle) - which is basically a promise from the lender that they’ll loan you money on the condition that the information you’ve provided is correct and subject to a valuation of the property.

3. Offer on Property

After you’ve secured a DIP (Decision in Principle), you’ll be in an excellent position to make an offer on your investment property. Sellers like DIPs. They show you can afford the purchase and have passed the lender's credit check.

4. Pre-Application and Submission

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.

5. Lender Underwriting and Valuation

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.

6. Mortgage Offer

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

7. Conveyancing

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.

8. Exchange and Completion

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.

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    It was a pleasure working with both Karolina and Eniko . Karolina provided excellent advice which was crucial in choosing the best lender and Eniko kept us updated and followed with other parties to make sure the transaction was running smoothly. Was a great pressure working with you both and thank you very much.

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    Jenna has worked tirelessly for us for several months, securing a second mortgage offer after our first sale fell through. She has been amazing throughout, keeping us updated and ensuring we received our offers on time. Thank you Jenna for all your hard work.

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    Words can’t express the level of service I received from John Charcol. Thanks to Gareth Johnstone and Stephen Hawley for helping me with my remortgage and protection. Their professionalism and expertise in this field is outstanding! Everything completed in a matter of a couple of weeks. Highly recommended.

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    We can’t express enough gratitude for the incredible service we received from Heather McLennan as our mortgage broker. From start to finish, Heather was professional, knowledgeable, and genuinely caring. She took the time to listen to our needs and concerns, ensuring we understood every step of the process. Heather’s expertise made what could have been a stressful experience incredibly smooth and stress-free. She was always quick to respond to our questions and provided insightful guidance that helped us make informed decisions. Thanks to her, we were able to secure the perfect mortgage, and we couldn’t be happier with the outcome. Now, we can’t wait to receive the keys to our new home!

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Buy to Let Mortgages FAQs

Who Can Get a Buy to Let Mortgage?

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. To find out your options, call us on 0330 433 2927.

Are BTL Mortgage Interest Rates Different from Residential Rates?

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.

How Many Buy to Lets Can I Have?

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.

Can You Change a Residential Mortgage to a Buy to Let?

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.

Can a First Time Buyer Get a Buy to Let?

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.

Can You Get Mortgage on a BTL Property with a Deposit of Less than 25%?

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.

Can You Apply for a Mortgage in a Limited Company Name?

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.

Why Might a Buy to Let Mortgage Application Be Declined?

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

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.

Buy to Let Guide

You can now get a buy-to-let mortgage at interest rates to suit almost any circumstances. Our guide takes you through the choices involved in more detail.

Buy-to-Let Tax Changes

Our buy-to-let tax changes guide takes you through the latest regarding the Stamp Duty holiday, buy-to-let mortgage interest tax relief and more.

Tax on Rental Income

What don’t you know about the tax on rental income? Our guide gives landlords insight on how it’s applied, the rates you’ll pay and your allowances.

Capital Gains Tax Guide

You pay Capital Gains Tax on the profit you make from the sale of a property that’s not your main residence. In our guide we answer all your questions about CGT.

Becoming a Landlord

You can make a lot of money from becoming a landlord – if you make smart choices. Our guide explains how it all works and contains tips to help you be successful.

Buy-to-Let Mortgage Calculator

Want to know how much you could potentially borrow on a buy-to-let mortgage? Find out with our free and easy calculator below.

Buy-to-Let Rent Calculator

Not sure how much you need in rental income? Use our free buy-to-let rent calculator to work out how much you need in rent to qualify for a buy-to-let mortgage.

Rental Yield Calculator

Here you can use our free and easy calculator to work out the rental yield on your buy-to-let property. You’ll also find information on what a rental yield is and why it’s important.

Buy-to-Let Stamp Duty Calculator

Find out how much Stamp Duty you’ll pay on your new buy-to-let property with our free and easy Stamp Duty calculator for second homes.

Mortgage Glossary

On this page you’ll find our detailed mortgage terminology glossary. There’s a lot of jargon out there but we’re here to make it easy.

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