There’s a lot of demand for rental properties these days: would-be homeowners everywhere are struggling to save up the deposit they need to get their own home, so they’re staying in rented accommodation longer than they expected.
At the same time, the record-low base rate means there are good buy-to-let mortgage deals out there.
We’ve put together a list of the latest buy-to-let deals from our panel of lenders, to show you what’s out there. These are some of the buy-to-let mortgages listed on Your Mortgage Deals – who supplied this article – on 9th October 2012. We’ve ordered them by rate, showing the ones with the lowest interest rates first.
Latest buy-to-let deals
At the top of the list, there’s a two-year tracker from Abbey, with a rate of 2.75%. You’ll need a deposit of at least 40% to qualify. Overall cost for comparison: 4.24%.
Next, there’s a two-year tracker from Principality Building Society. The rate’s slightly higher, at 2.99%, and again, you’d need a 40% deposit. Overall cost for comparison: 4.99%.
Third in the list, another two-year deal from Abbey – a fixed-rate mortgage this time, with a 3.09% rate. Again, you’d need at least a 40% deposit. Overall cost for comparison: 4.24%.
A buy-to-let mortgage from Godiva Mortgages comes next. At 3.15%, it’s a two-year fixed-rate mortgage that requires a lower deposit (35%). Overall cost for comparison: 4.74%.
Then there’s another mortgage from Godiva Mortgages: a two-year fixed-rate deal with a rate of 3.3%. This one’s also available to landlords with a 35% deposit. Overall cost for comparison: 4.74%.
If you’re looking for something with a higher LTV, Abbey offers a two-year tracker with a maximum LTV of 75%, so you’d need to put down just 25% of the property’s value. Overall cost for comparison: 4.24%.
Economists don’t seem to be expecting any increase in the Bank of England’s base rate anytime in the next few years, so a lot of people who’ve always gone for a fixed rate might now be considering a tracker mortgage. If you’re one of them, just bear in mind that if the base rate does go up, it’ll take your rate up with it…
Your home may be repossessed if you do not keep up repayments on your mortgage.
Subject to status. The actual rate available will depend upon your circumstances. Please ask for an illustration.