Cheap buy-to-let mortgage deals on the rise

22nd May 2015

Cheap buy-to-let mortgage deals on the rise

Good news for landlords: data from Moneyfacts shows that not only is the number of buy-to-let (BTL) mortgages on the rise, but the deals are becoming cheaper too.

The figures show a dramatic rise in the number of BTL mortgages available in recent years, up from 476 two years ago to 745 today – an increase of almost 300 products in two years alone.

However, an even more notable finding is the sharp increase in the number of low rate deals available, and the fall in rates as a whole.

Two years ago, there were a total of five two-year fixed rate BTL deals priced below 3%, but today this figure has rocketed to 83. It's a similar story for the number of five-year BTL deals priced below 5% – two years ago there were 37 such mortgages available, but now there are 143 of them on the market.

Rates as a whole have fallen dramatically, too, with the average two-year fixed rate BTL deal currently priced at 3.45% (down from 4.44% two years ago), and the average five-year deal standing at 4.25% (down from 4.67%).

Charlotte Nelson, finance expert at, said: "Buy-to-let mortgages are experiencing a renaissance, becoming not only more widely available but cheaper, too.

"With more five-year fixed rate deals charging below 5% than ever before, it is little wonder that the newly emancipated pensioners are genuinely considering buy-to-let as a retirement option. But those looking at this route as an alternative to a pension need to look at all aspects of the mortgage.

"Many lenders restrict the age they will borrow up to, so older borrowers would be wise to seek the guidance of a financial adviser who can access a larger portion of the market. Nonetheless, with easy savings to be made you are now likely to be recouping more in rent, which will allow you to get a bigger return on an investment."