In this article we explain buy-to-let mortgages, how they work and ways to find the best mortgage deals in the market. We also share a range of the best buy-to-let mortgage deals from lenders across the mortgage market.
What is a buy-to-let mortgage?
A buy-to-let mortgage is designed for borrowers who wish to purchase a property that will be let to a tenant and not for the buyer to live in. It is the mortgage you will require if you want to rent the property to tenants, as well as if you want to use it as a holiday let. Generally speaking, lenders don't permit you to rent out your property if you have a standard residential mortgage. Buy-to-let mortgages are offered using slightly different lending criteria, and you may need a larger deposit than you would for a standard residential mortgage.
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How does a buy-to-let mortgage work?
The majority of buy-to-let landlords choose interest-only mortgages, which result in significantly lower monthly repayments than capital-repayment mortgages. The monthly mortgage payment is typically covered by the rent you charge, with the property's debt only due at the end of the mortgage term.
While the cost of an interest-only mortgage is significantly lower than that of a standard residential repayment mortgage, becoming a buy-to-let landlord also entails additional costs, including an initial deposit of 20%-40% of the property's value. You may also need to consider the costs associated with managing the property or paying a letting agent to do so as maintenance of the property and tenant management can be time-consuming and costly.
More information about the benefits and potential pitfalls can be found in our article "The complete buy-to-let guide - all you need to know".
How to find the best buy-to-let mortgage
The optimal buy-to-let mortgage will depend on your specific circumstances. Below we have outlined the best buy-to-let mortgage rates currently available in the UK, taking into consideration the initial interest rate, the lender's fee and the standard variable rate (SVR) that you will revert to at the end of your buy-to-let mortgage deal. The initial interest rate is usually payable for a specific number of years, which is the mortgage deal term, and most borrowers switch to another mortgage deal once this term expires. If you do not switch your buy-to-let mortgage deal at the end of the mortgage deal term then you will start paying interest based on the standard variable rate (SVR) charged by your mortgage lender.
These deals from across the market illustrate the typical best buy-to-let mortgage deals based on a property price of £350,000 where the mortgage is taken over 25 years. We detail the most competitive buy-to-let deals based on 80%, 70% and 60% loan-to-value (LTV) to provide the best rates on varying levels of deposit.
To find the best buy-to-let mortgage deals in the market based on your specific requirements, go to our mortgage rate comparison tool, powered by Habito*, which gives you tailored results. Mortgage brokers like Habito will search the mortgage market on your behalf to source the best mortgage deals to suit your needs and you can find other mortgage brokers near you by using the directory services provided by VouchedFor* or Unbiased* - both directories allow you to search financial professionals in your area that have been vetted by other customers.
Best buy-to-let mortgage deals
Based on a property valued at £350,000, funded by an interest-only mortgage over a mortgage term of 25 years with the lender fees paid upfront.
Cheapest 2-year fixed-rate buy-to-let mortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 2 years | Lender fee |
| CHL Mortgages | 60% | 2.85% | 8.74% | £15,240 |
| CHL Mortgages | 70% | 2.85% | 8.74% | £17,690 |
| Molo | 80% | 3.08% | 6.44% | £18,694 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 5-year fixed-rate buy-to-let mortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 5 years | Lender fee |
| The Mortgage Works | 60% | 4.36% | 8.24% | £6,724 |
| BM Solutions | 70% | 4.43% | 8.09% | £7,449 |
| Molo | 80% | 4.83% | 6.44% | £20,095 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 2-year variable-rate buy-to-let mortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 2 years | Lender fee |
| CHL Mortgages | 60% | 3.85% | 8.74% | £11,040 |
| CHL Mortgages | 70% | 3.85% | 8.74% | £12,790 |
| The Tipton & Coseley Building Society | 80% | 4.19% | 8.19% | £8,874 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 5-year variable-rate buy-to-let mortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 5 years | Lender fee |
| Chorley Building Society | 60% | 4.59% | 8.14% | £1,849 |
| Newbury Building Society | 70% | 4.89% | 6.00% | £1,400 |
| Molo | 80% | 5.99% | 6.44% | £8,894 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Best buy-to-let remortgage deals
Based on a property valued at £350,000 where you are remortgaging the balance of your existing mortgage over a mortgage term of 25 years with the lender fees paid upfront.
Cheapest 2-year fixed-rate buy-to-let remortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 2 years | Lender fee |
| CHL Mortgages | 60% | 2.85% | 8.74% | £15,240 |
| CHL Mortgages | 70% | 2.85% | 8.74% | £17,690 |
| Molo | 80% | 3.08% | 6.44% | £18,694 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 5-year fixed-rate buy-to-let remortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 5 years | Lender fee |
| BM Solutions | 60% | 4.22% | 8.09% | £6,299 |
| Landbay | 70% | 4.52% | 7.24% | £12,879 |
| Molo | 80% | 4.83% | 6.44% | £20,095 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 2-year variable-rate buy-to-let remortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 2 years | Lender fee |
| CHL Mortgages | 60% | 3.85% | 8.74% | £11,040 |
| CHL Mortgages | 70% | 3.85% | 8.74% | £12,790 |
| The Tipton & Coseley Building Society | 80% | 4.29% | 8.19% | £8,549 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
Cheapest 5-year variable-rate buy-to-let remortgage deals
| Provider | Loan-to-value (LTV) | Initial interest rate | Rate after 5 years | Lender fee |
| Chorley Building Society | 60% | 4.59% | 8.14% | £1,849 |
| Newbury Building Society | 70% | 4.89% | 6.00% | £1,400 |
| Molo | 80% | 5.99% | 6.44% | £8,894 |
Rates are based on a property purchase price of £350,000 for an interest-only mortgage over 25 years and are correct as of 6th May 2026
What do you need to know before applying for a buy-to-let mortgage?
How much do buy-to-let mortgages cost?
While the interest-only monthly repayment can seem low compared with a repayment mortgage, you can expect to pay a higher interest rate than you would for a residential mortgage product. You also need to add to this the larger deposit that will be required to secure the mortgage - mortgage lenders generally require a minimum of 15% of the property purchase price as a deposit.
If you already own a property, you can also expect to pay a higher rate of stamp duty on your purchase as it will be classified as an "additional property". For more information on this, check out our article "Everything you need to know about stamp duty".
Stamp duty on a buy-to-let or second property
| Property purchase price | Rate of Stamp Duty Land Tax |
| Up to £125,000 (£300,000 for first-time buyers) | 5% |
| £125,001 - £250,000 | 7% |
| £250,001 - £925,000 | 10% |
| £925,001 - £1.5 million | 15% |
| £1.5 million upwards | 17% |
How much can you borrow on a buy-to-let mortgage?
Several factors will determine the total amount you can borrow:
- The level of deposit you have
- The rental income you can reasonably expect to make
- Your financial circumstances, including your income and credit history
To ensure you have a good buffer, it is a good idea to look for a rental income that is between 130% and 150% of the mortgage costs. This allows for the expenses that are likely to occur and the potential for void periods when the property stands empty between tenants.
What returns can you expect on your buy-to-let investment?
The yield you can expect to secure from your buy-to-let property will be determined by the purchase price, the area in which the property is located, and the associated costs of letting and maintaining it. It pays to research the market thoroughly and to speak to local agents who can advise you on the average yields for that area and point you to suitable properties.
If you would like to understand the most tax-efficient way to buy a buy-to-let and more information about how it all works, read our article "How much can I make from a buy-to-let investment?".
In the table below, we outline the average yields for different regions in the UK.
Rental yields based on regions in the UK
| Region | Average rental yield |
| London | 5.10% |
| East of England | 5.60% |
| South East | 5.50% |
| South West | 5.60% |
| West Midlands | 6.20% |
| East Midlands | 6.00% |
| North East | 7.90% |
| North West | 6.80% |
| Yorkshire and the Humber | 6.50% |
| Wales | 6.50% |
| Scotland | 7.60% |
| Northern Ireland | 5.80% |
Source: www.zoopla.co.uk (September 2025)
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