Latest buy-to-let deals

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.


Home insurance for landlords

If you’re entering into the buy-to-let sector, consider the kind of insurance you’ll need. As a landlord, basic home and contents insurance isn’t going to be enough to cover you for third party risks – the third party being your tenant(s).

You should purchase specialist landlord-insurance, but different insurers offer different levels of cover for different risks. Additional policies can be purchased, depending on the level of cover that you feel comfortable with, and based on what you need.

Some additional insurance for-landlords to consider includes public liability insurance, rent guarantee-insurance, legal expense cover, or unoccupied cover, which we’ll tell you more about here:

Public liability insurance

This kind of insurance protects you in the event you were sued for damage to your tenant’s property, or if your tenant suffered personal injury or illness as a result of living in your accommodation.

Rent-guarantee insurance

Redundancy, illness, divorce – unfortunately these things could happen to almost anyone, including your tenants. If they aren’t able to pay their rent, rent-guarantee insurance could help you to cover the cost until the matter is resolved. This is especially important if you’re still paying the mortgage on the rental property.

Legal expenses cover          

If you became involved in a dispute with your tenant over unpaid rent, damage to the property, a deposit dispute or eviction dispute, legal expenses cover could help you cover costs in the event of a tenant dispute of this nature.

Other things to consider

Some basic landlord policies may cover these things or part of these things or could include additional extras such as cover for the cost, or repairing malicious damage.

You may need a lower level of cover if the property is unoccupied – which may be relevant if you’re doing up the property, or you rent to students who are away for part of the year.

This article was provided by Home & Life.