Buy to let mortgage rates compared.

Where the tiers sit

All the rates here are at 75% loan to value. A lower loan to value usually means a lower rate, and pushing to 80% where it is available usually means a higher one, even on a straightforward case.

The tiers run from mainstream high street lenders, with the lowest rates but the tightest criteria, through mid range lenders, to specialist lenders that take cases most lenders turn down and charge more for it. The right tier depends on the deal, not the rate alone.

Rate versus fee

Each tier shows two ways a product can be priced: a higher rate with no fee, or a lower rate that carries a bigger fee. Which one works out cheaper depends on the loan size and how long you fix for, which is why the table shows the total cost over the fixed period rather than the rate alone.

The cheapest total is not always the goal either. Some landlords choose the higher fee with the lower rate, sometimes for tax reasons in how the fee and interest are treated, and sometimes because they expect the property to grow in value and prefer the lower monthly cost. Tax treatment depends on your circumstances, so always speak to a tax adviser, and remember a rise in property value is never guaranteed.

Which tier are you likely in?

Not sure where you would fall? The BTL mortgage fact find walks through the details that decide it, such as the property type, your income and how the rent stacks up, and produces a PDF you can take to a broker.

What is not included

These are purchase rates. On a remortgage you will often find free valuation and free legals, and sometimes slightly keener rates.

Thinking of remortgaging before your deal ends? The remortgage and ERC calculator weighs the saving from a new rate against the early repayment charge for leaving early.

On top of the product fee you may also pay a valuation fee, an application or booking fee, and solicitor costs, which vary by lender and are not in the totals above. To compare two real products in full, including those costs, use the mortgage comparison calculator.

Are buy to let mortgage rates higher than residential rates?

Usually, yes. Buy to let is treated as higher risk because the loan is repaid from rent rather than your salary, and rent is not guaranteed. As a rough guide the rate often sits around one percentage point above an equivalent residential deal, though the gap varies by lender, loan to value and property type. Product fees on buy to let also tend to be larger.

What affects the buy to let rate I am offered?

The main drivers are loan to value, the lender tier the case fits, the property type and how long you fix for. A lower loan to value usually means a lower rate, with 75% a common sweet spot. Straightforward cases at high street lenders get the keenest rates, while complex borrowers or unusual property move you into mid range or specialist tiers that price higher. The rent also has to pass the lender's stress test before any rate applies.

Is a 2 year or 5 year fixed rate better for buy to let?

It depends on what you value. A 2 year fix often carries a lower headline rate and lets you review sooner, but you face arrangement costs again in two years and the affordability test is usually stressed harder. A 5 year fix gives a longer run of certainty and a gentler stress test, which can support a larger loan, in exchange for committing for longer with a bigger early repayment charge if you leave early. There is no single right answer; it comes down to your plans for the property and your view on rates.

Why do buy to let mortgages often come with bigger fees?

Lenders use the product fee as a second lever alongside the rate. A higher percentage fee lets them advertise a lower headline rate, which can work out cheaper on a large loan and dearer on a small one. Buy to let fees are often charged as a percentage of the loan rather than a flat amount, so they scale with the borrowing. That is why the table here shows the total cost over the fixed period rather than the rate on its own.