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Some buy-to-let mortgage rates match or undercut the price of residential rates

Aaron Strutt Image

Residental mortgage rates have been rising so much that they are now regularly either the same price as buy-to-let mortgages or, in some cases, even cheaper.  

Virgin Money for Intermediaries lowest buy-to-let let rate is 0.34% cheaper than its equivalent residential rate. Even though the arrangement fee is £1,000 more, it is still unusual for the buy-to-let rate to be so much cheaper.

HSBC buy-to-let rate is also 0.25% cheaper than its equivalent residential rate, and Barclays buy-to-let mortgages are nearly the same as its residential rates for those with a 40% deposit.  

Aaron Strutt, product director at Trinity Financial, says: "While many lenders have been raising the price of their most competitively priced fixed rates, lenders have not been raising their buy-to-let rates by the same margins. If you plan to purchase a buy-to-let property or refinance to switch to a better deal, there are some great options."

Furness offering 1.59% discounted buy-to-let mortgage rates 

Furness Building Society offers one of the lowest buy-to-let mortgage rates, priced at 1.59%, and it is available for property purchases and remortgages.

It is a two-year discounted rate with a 4.05% discount from the lender's 5.64% variable rate. Applicants will need a 40% deposit to qualify, and the maximum loan is £750,000. Early repayment charges apply. 

Representative Example: A mortgage of £200,000 payable over 25 years initially on a discount rate for 2 years at 1.59% and then on our BTL Mortgage Variable Rate (MVR) of 5.64% (variable) for the remaining 23 years would require 24 monthly payments of £266.34 and 276 monthly payments of £944.77. The total amount payable would be £468,338.94 made up of the loan amount plus interest (£466,898.94) an application fee of £995, a valuation fee of £355 a CHAPS Fee of £20.00 and a Mortgage Discharge Fee of £120. The overall cost for comparison is 5.3% APRC representative. 

Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority

Call Trinity Financial on 020 7016 0790 to secure a faster mortgage offer or book a consultation 

As seen in
sunday times telegraph financial times bbc news the express the times
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