Head of Content
Mortgage Advisor & Director
The buy-to-let mortgage market is huge, with a wide range of products aimed at everyone from first-time buyers to established portfolio landlords. Navigating the market can be tricky, but we’re here to help. In this guide, you’ll learn the best way to compare buy-to-let mortgage products across the market, how to access exclusive deals, and secure the best rate.
How do buy-to-let mortgage rates compare to residential?
Buy-to-let mortgage interest rates are, on average, around one full percentage point higher than residential mortgage rates. At the time of writing (November 2023), this means that a typical interest rate in this corner of the market can be anywhere between 5% and 6%.
The exact rate you will end up with will depend on the following factors:
- The amount of deposit you have
- Your credit history
- The type of product you choose
The lower interest rates tend to kick in at around 70% loan-to-value (LTV), so saving up extra deposit, if you’re in a position to, can mean securing a more favourable deal.
Credit history can have an indirect impact on the type of deal you qualify for, as having bad credit will mean certain lenders and products are not available to you.
Finally, the length of time you lock yourself into an agreement for, whether the mortgage type is fixed or variable, and whether you pay a product fee can all play a part in determining your rate.
What interest rates are currently available?
The table below features a small sample of the buy-to-let mortgage rates and deals currently available. These rates are purely for example purposes and are subject to change:
Mortgage Lender | Initial Interest Rate | Product Details |
HSBC | 5.39% | 5-year fix, 75% LTV, no fee |
Natwest | 5.69% | 2-year fix, 60% LTV, £1,495 fee |
Santander | 5.50% | 3-year fix, 75% LTV, £1,749 |
Godiva | 4.99% | 5-year fix, 50% LTV, £1,999 fee |
BM Solutions | 4.45% | 5-year fix, 50% LTV, £3,999 fee |
This is a representative sample of the market from November 2023, but the above lenders have a wide range of buy-to-let deals to cater for borrowers with different needs and LTVs.
How to compare buy-to-let mortgage deals
There are two ways to compare buy-to-let mortgage deals: research the market yourself and choose a product that fits your needs, or have a mortgage broker do it for you.
Using a broker is a better alternative to sourcing a mortgage yourself, as it will save you time, help you access a wider range of products, and boost your chances of landing the best deal.
Some buy-to-let mortgage lenders can only be accessed via a broker, while others have exclusive rates and deals that they only offer through a mortgage advisor. Brokers also have in-depth knowledge of this market, so your comparison will be whole-of-market.
Furthermore, the deals they round up for you will be personalised, tailored to your needs and circumstances - you will miss out on bespoke recommendations by going directly to a lender.
Bank loyalty is one of the biggest reasons buy-to-let mortgage customers miss out on the best deal. Borrowers who head straight to the lender they bank with limit themselves to one range of products, and run the risk of missing out on better deals potentially available elsewhere.
How to get started
You can begin comparing buy-to-let mortgage rates for free through Teito, and we have specialist mortgage brokers on hand to help you get the best deal.
After you have searched the market, one of our buy-to-let mortgage advisors will take a look at your case, make sure you are getting the best rate available, and offer bespoke advice. They will then oversee your full mortgage application to make sure it all goes smoothly.
Ready to compare interest rates and take advantage of a free, no-obligation chat with a buy-to-let mortgage broker? Get started here.
Comparing buy-to-let remortgage rates
Interest rates for buy-to-let remortgages are generally the same as they are for purchase applications, but some lenders offer exclusive deals for existing customers, while others offer incentives for landlords who are switching over to a mortgage with them.
The table below shows a sample of the latest buy-to-let remortgage deals:
Remortgage Lender | Initial Interest Rate | Product Details |
Natwest | 5.84% | 2-year fix, 75% LTV, £1,495 fee |
HSBC | 5.99% | 2-year tracker, 75% LTV, £1,999 fee |
Godiva | 4.99% | 5-year fix, 50% LTV, £1,999 fee |
Halifax | 5.22% | 5-year fix, 70% LTV, no fee |
Santander | 5.57% | 2-year fix, 60% LTV, £1,749 fee |
The above rates, sourced in November 2023, are purely for example purposes. You can compare buy-to-let remortgage rates from these lenders and more for free through Teito.
Using a calculator to compare buy-to-let mortgage rates
You can use our mortgage repayments calculator below to get a rough idea of how much your buy-to-let mortgage will cost each month based on different interest rates. You can also compare a variety of term lengths to find out how this could impact your payments.
Enter the amount you need to borrow into the box below to get started. You can convert the results to interest-only so they are representative of most buy-to-let mortgages.
Are limited company mortgage rates any different?
Interest rates can be slightly higher if you are taking out a buy-to-let mortgage through a limited company as most of the lenders who offer finance for businesses are specialist mortgage providers who tend to deal with more complex customers on a bespoke basis.
You won’t find many lenders offering specific rates for limited company buy-to-let mortgages, but if you compare mortgage deals on Teito and select one that fits your requirements, one of our brokers will search the entire market for the best one that your limited company qualifies for.
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How to compare buy-to-let insurance deals
As a buy-to-let mortgage holder, you will need a bespoke insurance policy to protect you against the specific risks that come with letting property to tenants. At Teito, we have whole-of-market insurance experts on hand who can compare plans across the market for you.
They could help you find a landlord insurance policy that includes:
- Buildings & contents insurance
- Rental protection cover
- Liability insurance
- Legal expenses cover
- Portfolio insurance
The benefits of using a broker to compare the landlord insurance market are largely the same as they are for your mortgage search - our insurance brokers are whole-of-market and have deep working relationships with insurance providers who offer exclusive deals.
You can read more about this in our guide to landlord insurance.
Compare buy-to-let mortgage rates for free today
You can compare buy-to-let mortgage rates and deals from across the market yourself for free on Teito, and we have expert mortgage brokers on hand to help you.
Once you’ve selected a deal that fits your needs, they will help you secure it, guide you through the application process and make sure you’re getting the best rate available.
Here are just some of the reasons buy-to-let mortgage borrowers choose us:
- It takes second to access deals online
- Exclusive rates are available for our customers
- Our brokers can provide specialist buy-to-let advice
- We are 5-star rated on leading review websites
Ready to compare rates and take advantage of a free, no-obligation chat with a buy-to-let mortgage broker? Get started here.
FAQs
Can I compare buy-to-let rates in Scotland and Northern Ireland on Teito?
Yes. You can compare rates and deals from lenders who have a strong presence in these countries, such as Danske Bank and Royal Bank of Scotland, but keep in mind that most UK mortgage lenders can provide finance for borrowers in Scotland and Northern Ireland.
The rates and deals you will find on Teito are accessible to customers across the UK, but we also have brokers based in Scotland and Northern Ireland on hand to provide bespoke advice.
Can I compare let-to-buy mortgage deals?
Yes but we recommend speaking to one of our mortgage brokers after you have compared rates for the initial buy-to-let part of the agreement. Some lenders offer incentives to take out both your buy-to-let mortgage and residential mortgage for the onward purchase with them, and our brokers have deep working relationships with specialist let-to-buy mortgage lenders.
Can I compare interest-only buy-to-let mortgages on Teito?
Yes. The majority of the buy-to-let mortgage deals you will find on our comparison service are for interest-only agreements. Speaking to a mortgage broker is highly recommended if you need a repayment buy-to-let mortgage, as these are far less common.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
Last updated 5 March 2024