Jason Bailey

Experly compared by Jason Bailey

Products Updated May 13, 2018

Variable Rate Buy to Let Mortgages

Quickly view and compare all the variable rate buy to let mortgage deals on offer. See how each mortgage deal compares with other lenders and change the search filters to update the mortgage results to suit your preferences. Speak to a buy to let mortgage broker for personal advice.

Free Buy to let mortgage advice and brokerage. Our experts can find you the best deals and have access to exclusive rates:

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All credit types
Rated 5.0/ 5

Life's Great Why?
Why?

This provider is our Expert’s Choice in its category as it won tops marks for the following.

  • TRUST
  • VALUE
  • EXPERTISE & KNOWLEDGE
  • CUSTOMER SERVICE

Learn more about how we review and assess the providers here on Lending Expert.

LTV
50% - 85%

Initial Rate
1.44% - 5.29%

Standard Rate (SVR)
4.99% - 4.99%

APRC
4.7% - 5.2%

Life's Great is an online buy to let mortgage broker that can find and arrange your mortgage for free. They can quickly search the market to find you the best BTL deal from across the market. Click Get A Quote for a personal illustration.

What to expect from buy to let variable rate mortgages

If you are thinking about buying a property in order to let it out seeing as it is still incredibly difficult for first time buyers to get onto the housing ladder and so there is a very strong rental market out there, then you will have to negotiate your way through the various types of buy to let mortgages available in order to find the right one for you.

Things you need to know about a buy to let variable rate mortgage

In general you will end up paying around 1% or 2% more for a buy to let variable rate mortgage than you will for a standard residential mortgage. You will find that you will only get the best rates when you have a deposit of at least 35% of the property value, although some lenders require 40% in order to offer you the best buy to let mortgages available. If you have this size of deposit you may also find that some of the restrictions of other mortgages are removed, such as early repayment fees. The application fees can also be a little lower than for mortgages that only require smaller deposits.

The application fee

The absolute lowest application fee you will pay will be around £1000, however the vast majority of mortgage deals with lower interest rates will have around a £2000 application fee associated with them. Other mortgage products from lenders who may potentially take on a higher level of risk offer not only higher interest rates, but also they use a percentage of the loan amount as the application fee, so the large the loan you require, the more you will pay to take out the mortgage.

Other limitations that may be applied

Depending on your mortgage lender, you may find that you have certain conditions placed on the rental of your property. Firstly, getting your mortgage will depend on you being able to demonstrate that you will be able to charge at least 125% of the mortgage payments you will be making. However it would be unwise to set rent at the minimum level as this means you would have to immediately pass on any interest rises to your tenants. You may also be restricted to particular types and length of tenancy agreement and also who you let your property out to, for example you may not be able to let to a group of unconnected individuals.

 

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