Finance expert highlights the best BTL mortgage choices this week

Finance expert highlights the best BTL mortgage choices this week

9:48 AM, 11th January 2024, About 4 months ago

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Several buy to let lenders have announced rate cuts for their mortgage products as the trend for lower rates continues.

So far this week, landlords have seen Paragon, Landbay and Accord, along with West One, CHL and Coventry for Intermediaries lower their BTL mortgage rates.

And now Moneyfacts has highlighted two deals it says that landlords should take a closer look at.

Five-year fixed rate mortgage deal for landlords

First up is Newcastle Building Society which has launched a new five-year fixed rate mortgage deal for landlords, with an 80% loan-to-value (LTV) ratio and a 4.99% interest rate until 31 August 2029.

The deal has a £999 product fee and allows overpayments but does not offer any incentives.

It is only available through selected intermediaries and has received an ‘Excellent’ Moneyfacts product rating.

Rachel Springall, the finance expert at, praised the deal, saying: “Landlords looking for a competitive rate to secure their monthly repayments over the next five years may find the latest deal from Newcastle Building Society an enticing choice this week.”

Reduced its rates for its buy to let range

Santander has also reduced its rates for its buy to let range, including a two-year fixed rate mortgage deal with a 75% LTV ratio and a 4.64% interest rate until 2 June 2026.

The deal has a £1,749 product fee, which can be added to the mortgage advance, and offers a free valuation for all borrowers and a choice of free legal fees or £250 cashback for remortgage customers.

It has earned an ‘Outstanding’ Moneyfacts product rating.

Ms Springall said: “Its two-year fixed rate deal priced at 4.64% may appeal to landlords looking to secure a competitive rate.

“A free valuation incentive for all, and remortgage customers can choose between free legal fees or £250 cashback.”

She adds: “The product fee of £1,749 can be added to the mortgage advance, which could be ideal for those looking to save on the upfront cost of their mortgage.”

Cut its rates for buy to let specials

Meanwhile, Foundation Home Loans, a specialist lender for intermediaries only, has also cut its rates for buy to let specials.

The BTL specials range changes include a five-year fixed rate mortgage deal for clients with an almost clean credit history, with a 4.79% interest rate, a 6% fee and a portfolio-only option.

The lender has also reduced its rates for clients financing a more specialist property type, such as a house of multiple occupation (HMO), with rates starting from 5.34% and a 3% fee.

Tom Jacob, Foundation’s director of product and marketing, said: “The market continues to move positively in favour of borrowers, and as a result, we’ve been able to reduce rates across a large number of specials.

“In buy to let we’re very pleased to be able to offer a five-year fix below 5% and we have made further reductions across both two- and five-year fixes, within both our F1 and F2 tiers, and we’re sure these will provide further options to advisers with landlord clients.”

He added that the rate reductions were part of a set of changes that the lender was making this month, including improvements to the adviser experience and the product proposition.

For assistance with any type of buy to let (BTL), property or commercial finance please complete the contact form below:

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