BTL Mortgages Top Five

The buy-to-let mortgage market has gone from bust to boom again over the last few years. With lenders refusing to lend to anybody and in particular to landlords at the low point of the ‘credit crunch’. Once more we are seen rightly as a good risk and more to the point good business for many lenders.

Fixed rates hit historic lows

Fixed rate mortgages have hit the lowest rates for 24 years according to statistics just released by Moneyfacts. This has highlighted the opportunities out there for landlords new and old to dip their feet into the buy-to-let market. We therefore decided to ask Chloe Taverner at Property Hawk Mortgages what was her current top 5 of buy-to-let mortgages.
This is it:

1. Hinckley & Rugby Building Society (60% LTV)

WHY WE LIKE IT
This mortgage has the lowest rate currently available in the Property Hawk Mortgages stable and it also has none of those horrible Early Repayment Clauses (ERCs) that can catch landlords out if their circumstances change. It also has a free valuation (under £1m & £250 cashback). For those landlords that are struggling with the property to value up on rental calculation this product allows cover to be calculated at the payrate.

KEY FEATURES
5.1% APR, 2.72% DISCOUNT (2 years) with 135% rental cover at pay rate. Downside is the £2495 completion fee.

2. Kent Reliance (85% LTV)

WHY WE LIKE IT
The mortgage offers the highest LTV currently available at 85% allowing landlords to ‘gear up’, also no ERCs)

KEY FEATURES
6.8% APR, 4.89% discount (2 years) with 125% rental cover at 5%. Completion fee of 2.5%.

3. Paragon HMO (75% LTV)

WHY WE LIKE IT
This product is one of the few available for Houses In Multiple Occupation. 5 year fixed rate product gives landlords a certain amount of certainty.

KEY FEATURES
5.5% APR, 4.85 tracker rate (4.25% + LIBOR), rental cover 130% at 7% with completion fee of 1.75%

4. Mortgage Trust (75% LTV)

WHY WE LIKE IT
As well as offering an attractive LTV it offers landlords the certainty of an attractive fixed rate of 3.5% until May 2015. Free valuation and legal’s adds to its’ appeal.

KEY FEATURES
5.4% APR, Reverts to LIBOR tracker of + 4.75%. Rental cover at 125% at 5%. Completion fee of 2.25%.

5. Skipton Building Society (65% LTV)

WHY WE LIKE IT
This mortgage has a low flat fee of £995 making it particularly attractive for landlords looking at minimizing fees. It also offers free valuation and legals for remortgage properties up to £500,000. The 3.79% fixed rate is an attractive low level up to May 2016.

KEY FEATURES
5.6% APR, reverts to lender base rate of 5.69%. Rental cover is 125% at 6%. The downside is that there are ERC attached to the loan (see Property Hawk Mortgages for details)

The Time Could Be Now

We would never advise investors to dive into the buy-to-let market. You should fully consider all the risks and options but with mortgage rates being so low and house prices stabilizing this could be the time to gear up and take advantage of the expanding buy-to-let sector.

If so give Property Hawk Mortgages a call on 029 2069 5446 for free impartial expert advice.

Or use our free BTL mortgage search tool to search the whole market.

Your home may be repossessed if you do not keep up repayments on your mortgages.

The Financial Services Authority does not regulate some forms of mortgage.