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Buy to Let Mortgages for maximum lending and minimum cost?

Which type of buy to let mortgage lender is suitable for your needs?

Did you know?
  • Some buy to let mortgage lenders will lend you nearly twice what others will
  • Some buy to let mortgage products will cost you double what others will

Buy to let investors, like all business people, have differing needs for their business. Some are acquiring or remortgaging investment properties where maximum lending is the priority. For others, low-cost and maximum profit is the driver. Others may seek to take a balanced approach between the two.

Maximum buy to let lending is failing

The situation has been further complicated in recent months by lenders reducing the amount they are prepared to borrow against a given rental income. This change has been quite aggressive with some lenders, and we have seen lenders who are traditionally buy to let specialists become some of the more conservative with regard to maximum lending.

Across the buy to let market there is generally a correlation between maximum lending potential against rental income and cost. Buy to let mortgage lenders are more generous with maximum lending tends to apply higher fees and have higher interest rates.

This is the case in our analysis on this page which shows maximum lending across more than two dozen buy to let mortgage lenders, and a cost calculation based on some of the lowest rates available from those lenders.

Which buy to let category is best for you?

From our analysis we have been able to group buy to let mortgage lenders into three categories:

Value buy to let lenders – where rates and fees are competitive and lending less generous

Supportive buy to let lenders – where generous lending is paid for via relatively high rates and fees

Balanced buy to let lenders – offering higher than minimum lending and competitive rates

The information here may be a good start point to aid your thinking, but you should be aware that there is much more to buy to let lending than simply selecting a lender based on figures on page. There are numerous complications that can make a buy to let lender or a buy to let lender’s product unsuitable for an investor.

Your interests are always best served by consulting an experienced mortgage broker to assist you with your buy to let mortgage application.

Buy to let lenders ranked by maximum lending

Maximum lending assuming and assessed rental income of £1000 per month. Figures are based on the lenders rental affordability calculation. Some lenders will also assess personal affordability

Buy to let lenders ranked by value for money

Costs for buy to let lending of £150,000 and includes interest and product fees over two years. Does not include valuation fees are other costs. Figures calculated on lenders more competitive rates at 75% loan to value.

Our ‘value’ buy to let lenders

  • Barclays
  • Coventry BS
  • Monmouthshire BS
  • NatWest
  • Platform
  • Principality BS
  • Santander
  • Skipton BS
  • The Mortgage Works
  • Virgin Money

Our value buy to let lenders offer value for money on rates and fees for those seeking lower lending

Our ‘supportive’ buy to let lenders

  • Aldermore Bank
  • Fleet Mortgages
  • Hinckley & Rugby
  • Kensington Mortgages
  • Kent Reliance
  • Leek United BS
  • Mortgage Trust
  • Newbury BS
  • Paragon Mortgages
  • Precise Mortgages
  • Scottish BS

Our supportive buy to let lenders offer options for those seeking higher lending. (Please note that some of these Lender factor personal income and outgoings into their affordability calculations)

Our ‘balanced’ buy to let lenders

  • Accord Mortgages
  • BM Solutions
  • Foundation HL
  • Marsden BS
  • Metro Bank
  • Teachers BS

Our balanced buy to let lenders offer sensible maximum lending with reasonable rates and fees

How are Buy to Let lenders ranked?

Buy to Let mortgage lenders ranked by maximum lending

  1. Aldermore Bank
  2. Scottish BS
  3. Newbury BS
  4. Hinckley & Rugby
  5. Precise Mortgages
  6. Kent Reliance
  7. Marsden BS
  8. Fleet Mortgages
  9. Paragon Mortgages
  10. Mortgage Trust
  11. BM Solutions
  12. Kensington Mortgages
  13. Leek United BS
  14. Metro Bank
  15. Accord Mortgages
  16. Platform
  17. NatWest
  18. Santander
  19. Barclays
  20. Teachers BS
  21. Principality BS
  22. Virgin Money
  23. Monmouthshire BS
  24. Skipton BS
  25. Foundation HL
  26. Coventry BS
  27. The Mortgage Works

Affordability calculations as of August 2016

Buy to Let mortgage lenders ranked by value for money

  1. Monmouthshire BS
  2. Virgin Money
  3. Coventry BS
  4. Barclays
  5. Santander
  6. Marsden BS
  7. NatWest
  8. Principality BS
  9. Platform
  10. BM Solutions
  11. Hinckley & Rugby
  12. Accord Mortgages
  13. Metro Bank
  14. The Mortgage Works
  15. Skipton BS
  16. Teachers BS
  17. Fleet Mortgages
  18. Leek United BS
  19. Kent Reliance
  20. Newbury BS
  21. Mortgage Trust
  22. Foundation HL
  23. Scottish BS
  24. Precise Mortgages
  25. Paragon Mortgages
  26. Kensington Mortgages
  27. Aldermore Bank

Buy to let rates as of August 2016