Lenders continue to improve buy-to-let rates

by Aaron Strutt

May 13 2011

There has been a host of rate reductions from buy-to-let lenders this week as more banks and building societies look to offer lower rates than their competitors. Godiva Mortgages offer the cheapest investment mortgages and they lowered some of their fixed and tracker rates. The Norwich & Peterborough Building Society has also returned to the buy-to-let market.

Godiva Mortgages may have the lowest rates, but they require a fairly large deposit. Their two-year fixed rates start at 4.35% and three-year fixes at 4.75%. They are available to borrowers with a 35% deposit. For investors keen to keep monthly repayments to a minimum, Godiva offers a base rate tracker at 3.29%. These mortgages have low arrangement fees compared to the rest of the market at £1249 and they all have a free property valuation.

Competitive mortgages are available to those with 25% to put towards the purchase of a buy-to-let property. Birmingham Midshires has two-year tracker at 4.35% and it has a 2% arrangement fee. There is also the option of a three-year tracker rate at 4.99% and it does not have an arrangement fee.

For borrowers with a 15% deposit, Trinity Financial has access to a two-year fixed rate at 5.99% and the maximum loan is £350,000. The arrangement fee is 2.5% of the loan amount and the mortgage is available to first-time landlords.

May 13, 2011