Please Note: This Article is 6 years old. This increases the likelihood that some or all of it's content is now outdated.

Landlords are confronted by a bemusing array of buy to let mortgages – some charging fees and some not – so which is the cheapest?

Take the Post Office as an example.

The lender, funded by the Bank of Ireland, is eager to increase market share and offers a wide range of competitively priced buy to let mortgages.

A two-year 3.39% fixed rate deal at 60% reverting to 4.99% when the fixed rate ends costs a total of £19,150 over three years, including an arrangement fee of £1,495.

- Advertisement -

A three-year 4.39% fixed rate deal at 60% costs £19,755 over three years with no arrangement fee.

The two-year deal works out at £531 a month including fees, while the three-year rate is £17 a month more expensive at £548.

Landlords need to watch out for buy to let lender marketing tricks to make sure they get the mortgage that suits them.

Bundling fees, cash backs and adjusting loan-to-values into the mortgage cost change the structure of the deal and blur comparisons – which lenders want so landlords cannot easily compare the actual monthly cost of a product with those offered by rivals.

Buy to let mortgage deals – June 9, 2014

Lender

Rate

Type

LTV

Fees
Post Office

3.39%

2 year fix

60%

£1,495
HSBC

3.49%

Lifetime tracker

65%

£1,999
Post Office

3.65%

2 year fix

75%

£1,495
Halifax

3.69%

2 year fix

60%

£1,260
TSB

3.69%

2 year fix

60%

£1,260
TSB

3.69%

2 year tracker

60%

£1,260
Virgin

3.79%

3 year fix

70%

£1,094 + £500 cash back
HSBC

3.79%

2 year fix

60%

£99
Virgin

3.99%

5 year fix

60%

£1,094 + £500 cash back
Virgin

4.09%

5 year fix

60%

£1,094 + £500 cash back
Aldermore

4.18%

2 year fix

75%

2.5%
Post Office

4.39%

3 year fix

60%

Post Office

4.59%

5 year fix

60%

Post Office

4.79%

5 year fix

75%

Post Office

4.89%

3 year fix

75%

This is not an exhaustive list of current buy to let mortgages – other lenders and mortgages are available. Some offers are subject to change or withdrawal at short notice

Please Note: This Article is 6 years old. This increases the likelihood that some or all of it's content is now outdated.
Subscribe to LandlordZONE

LEAVE A REPLY

Please enter your comment!
Please enter your name here