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Buy-to-let landlords are benefiting from increased choice and record low mortgage rates, so where are the best deals?



Falling rates: Buy-to-let mortgages across all LTVs and terms  have fallen to their cheapest level

Falling rates: Buy-to-let mortgages have fallen to their cheapest level across all LTVs and deal terms

There are 1,108 buy-to-let deals available to landlords, according to Moneyfacts, up from 758 last year and 295 in 2010.

The average two-year fixed rate on a buy-to-let deal based on a 60 per cent loan to value (LTV) has fallen to 2.60 per cent.

This is down from 3.04 per cent last year and 5.08 per cent in 2010.

Shopping around for a combination of decent rate and low fee is crucial to cut the cost of buy-to-let.

We reveal some of the top deals below.

40 per cent deposit/60 per cent LTV

Accord Mortgages, the broker arm of Yorkshire Building Society, currently offers the lowest fixed- rate buy-to-let mortgage on the market at 1.84 per cent with a £2,625 fee for a two-year fix.

A 25-year £150,000 interest-only mortgage on this rate would have monthly payments of £230 a month and a total cost including fees of £8,145 over two years.

But you could make savings by paying a slightly higher rate with a lower fee.

NatWest offers a rate of 2.02 per cent with a £1,995.

The monthly payments on a 25-year £150,000 mortgage would work out at £252 but the overall cost would be cheaper at £8,055 over two years.

For a longer-term fix, Leeds Building Society offers a five-year rate of 3.2 per cent with a £999 fee.

A 25-year £150,000 mortgage would cost £400 a month and £24,999 over five years.

25 per cent deposit

Barclays offers a two-year fixed rate at 2.54 per cent with a £1,999 fee.

A 25-year £150,000 mortgage would cost £317.50 a month and £9,619 over two years.

Metro Bank and Virgin Money offer the lowest five-year fixed rate for a 25 per cent deposit at 3.79 per cent.

Metro Bank charges a £1,999 fee, while Virgin Money has a £2,494 charge alongside £500 cashback.

A 25-year £150,000 mortgage with Metro Bank deal would cost £30.379 over five years, and the Virgin Money deal would work out at £30,374 after the cashback.


Deposit Deal term Lender Rate Fees £150,000 mortgage cost
25% Two-year fix Barclays 2.54% £1,999 £8,145 over two years
25% Five-year fix Metro Bank 3.79% £1,999 £24,999 over five years
40% Two-year fix Accord Mortgages 1.84% £2,625 £9,619 over two years
40% Five-year fix Leeds Building Society 3.20% £999 £30,379 over five years

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