The best mortgage deals for buy-to-let mortgages are currently available from The Mortgage Works, which is a subsidiary of the Nationwide building society. The buy-to-let mortgage specialist lender is leading the way in offering ultra-competitive buy-to-let interest rates, with free evaluation as standard, and a £250 cashback scheme that will come in handy for updating your buy-to-let property (or toasting your becoming a landlord).
Determining which of the fixed-term offerings from The Mortgage Works is best for you will depend largely on how much you're prepared to pay in mortgage arrangement fees. The two-year fixed buy-to-let mortgage, for example, has an interest rate of 1.74 per cent with a fee of £995, but if you're prepared to stump up a fee of £1,995, it'll be an even lower 1.64 per cent.
These rates are available for a maximum of 75 LTV (loan-to-value) ratio. With a 65 per cent maximum LTV. On the other hand, you can lock in a 1.59 per cent rate for two years, with the higher fee of £1,995. If you are confident that you will recoup the costs eventually via rental income, we think this is a very good deal.
If you want to lock in an amazingly low rate for five years, a very low interest rate of 1.69 per cent is available at 50 per cent LTV, with a £1,995 mortgage arrangement fee. If you want the fee to be lower, the best deal is available for 65 per cent LTV, with the £995 fee giving you a 2.04 per cent rate.
Tempted to compare more buy-to-let mortgages? Use the online mortgage specialist Habito's calculator below.