Buy-to-Let Mortgage Rates

Compare buy-to-let mortgage rates Open the BTL calculator

See the rates you are eligible for Compare on true cost Shortlist and enquire Free to source

Buy-to-let mortgage rates decide how much profit your rental property makes each month and how much a lender will let you borrow. This guide explains how buy-to-let mortgage rates work in the UK, what pushes your rate up or down, how to compare BTL mortgage rates on true cost rather than headline price, and how to see the rates you are actually eligible for.

Last reviewed: 7 October 2026

How buy-to-let mortgage rates work

A buy-to-let mortgage rate is the interest a lender charges on the money you borrow against a rental property. Most buy-to-let mortgages are interest-only, so the rate translates directly into your monthly payment: a £200,000 loan at 5% costs £10,000 a year in interest, or about £833 a month.

Every buy-to-let mortgage has three numbers worth knowing:

The initial rate. The rate you pay during the deal period, usually two or five years.
The revert rate. The rate the mortgage moves to when the deal ends, normally the lender's standard variable rate. It is usually far higher, which is why most landlords remortgage before the deal expires.
The APRC. The annual percentage rate of charge blends the initial rate, the revert rate and fees over the full mortgage term. It is useful for a rough comparison, but because few landlords stay on the revert rate, the cost over the initial period usually matters more.

Types of buy-to-let mortgage rates

Fixed-rate buy-to-let mortgages

The rate is locked for a set period, most commonly two or five years. Your payment stays the same whatever happens to interest rates, which makes rental cash flow predictable. Fixed rates usually carry early repayment charges if you leave during the fixed period.

Tracker buy-to-let mortgages

The rate follows the Bank of England base rate plus a set margin. If the base rate falls, your payment falls; if it rises, so does your payment. Some trackers have low or no early repayment charges, which suits landlords who may sell or refinance soon.

Discount and variable-rate buy-to-let mortgages

A discount rate is set at a fixed amount below the lender's standard variable rate for a period. Because the lender can change its variable rate at any time, these are less predictable than trackers.

Two-year or five-year fixed buy-to-let rates?

A two-year fix gives you flexibility. You can remortgage, release equity or sell sooner, but you pay arrangement fees more often and face the market again in two years.

A five-year fix gives longer certainty over your biggest cost. Many lenders also apply a more generous rental stress test to five-year fixed products, so a five-year deal can sometimes let you borrow more against the same rent. The trade-off is being tied in for longer, with early repayment charges if your plans change.

What affects your buy-to-let mortgage rate?

Lenders price buy-to-let mortgages on risk. The main factors are:

Loan-to-value (LTV). The more deposit or equity you have, the lower the rate. This is the single biggest factor.
Property type. Standard houses and flats attract the most lenders and the keenest pricing. HMOs, multi-unit blocks, flats above shops and non-standard construction usually cost more.
How you own the property. Limited company buy-to-let mortgages are often priced a little above personal-name products.
Your profile. Landlord experience, portfolio size, income and credit history all influence which lenders will accept you and on what terms.
The fee structure. Many of the lowest headline rates come with a larger product fee.
The wider market. The Bank of England base rate and market expectations of future interest rates set the backdrop for all mortgage pricing.

Buy-to-let mortgage rates by LTV

Lenders group their pricing into loan-to-value bands. Each step up in LTV usually means a step up in rate.

Up to 60–65% LTV. The lowest buy-to-let mortgage rates are generally found here. A 35% to 40% deposit gives you the widest choice.

75% LTV. The most common band for landlords, needing a 25% deposit. Rates are higher than at 60% but competition among lenders is strong.

80% LTV and above. Fewer lenders, higher rates and tighter criteria. The rent also has to work harder to pass the stress test on a bigger loan.

If you are close to a band boundary, a slightly larger deposit can move you into cheaper pricing. Try different deposit levels in the buy-to-let mortgage calculator to see the effect.

Limited company and specialist buy-to-let rates

Limited company (SPV) buy-to-let rates are usually slightly higher than personal-name rates because fewer lenders serve this market, although the gap has narrowed as more landlords incorporate. Whether a company structure is worthwhile depends on your tax position as well as the rate.

Rates for HMOs, multi-unit freehold blocks, holiday lets and first-time landlords are also priced separately from standard buy-to-let mortgages. These cases need specialist underwriting, so expect to pay a premium over a standard single-let property.

Buy-to-let rate vs true cost

A low rate with a high fee can cost more than a higher rate with no fee. Here is an illustrative example, using made-up figures, for a £200,000 interest-only loan over a two-year fixed period:

Deal A: 4.50% with a £3,000 fee. Interest of £18,000 plus the fee comes to £21,000.

Deal B: 4.99% with no fee. Interest comes to £19,960.

Deal B has the higher rate but costs £1,040 less over the two years. As a rule, the larger the loan, the more a low rate matters; the smaller the loan, the more the fee matters. Fees charged as a percentage of the loan change this balance again, so always compare the total cost over the deal period.

How the rate affects how much you can borrow

Buy-to-let lenders test whether the rent covers the mortgage interest by a set margin, known as the interest cover ratio (ICR). This is typically 125% for basic-rate taxpayers and limited companies and up to 145% for higher-rate taxpayers. The test is run at a "stressed" rate that is usually higher than the rate you actually pay.

This means the rate you choose affects your borrowing as well as your payments. Read our guide to buy-to-let stress testing for a full explanation.

How to get a lower buy-to-let mortgage rate

Put down a bigger deposit or wait until your equity moves you into a lower LTV band.
Keep your credit record clean in the months before you apply.
Choose a property lenders like. Standard construction and strong rental demand widen your options.
Check the rent. A stronger rent relative to the loan opens up more products.
Start early when remortgaging. Begin looking three to six months before your current deal ends so you never sit on the revert rate.
Compare across the market. Looking at every product you are eligible for, rather than one lender, is the most reliable way to find a lower rate.

Buy-to-let mortgage calculator

Put any rate into the buy-to-let mortgage calculator with your property value, loan amount and expected rent to see the monthly payment, the interest cover ratio and the total cost over the deal period, fees included. Our calculator guide explains how the figures are worked out.

Open the buy-to-let mortgage calculator

How to compare buy-to-let mortgage rates on Dynesourcer

1
Enter your details. Property value, loan amount, expected rent, property type and whether you are buying personally or through a limited company.
2
See the rates you are eligible for. Results are filtered by lender criteria, so you only see deals that fit your case.
3
Compare on true cost. Sort by initial rate, fees or total cost over the product term.
4
Shortlist and enquire. Sourcing and enquiring is free. A broker fee applies only if you go ahead with a full application, and you will be told the fee before you commit.

New to buy-to-let? Start with our guide to buy-to-let mortgages.

Compare buy-to-let mortgage rates

Buy-to-let mortgage rates FAQs

What are current buy-to-let mortgage rates?

Buy-to-let mortgage rates change frequently and depend on your deposit, property and circumstances, so any single figure quickly goes out of date. To see the current rates for your own case, enter your details in the Dynesourcer sourcing tool.

Are buy-to-let mortgage rates higher than residential rates?

Usually, yes. Lenders see rental property as higher risk than an owner-occupied home, because the mortgage depends on tenants paying rent. Buy-to-let products also tend to carry higher fees and need a larger deposit.

Should I choose a fixed or tracker buy-to-let mortgage?

A fixed rate keeps your payments the same for the initial period, which makes cash flow easier to plan. A tracker moves with the Bank of England base rate, so it can become cheaper or more expensive. The right choice depends on how much certainty you need and how long you plan to keep the property.

Are limited company buy-to-let rates higher?

Often slightly, because fewer lenders offer limited company products. Whether a company structure is worthwhile depends on your tax position as well as the rate, so speak to an accountant before deciding.

What is a revert rate?

The revert rate is the rate your mortgage moves to when the initial fixed or tracker period ends, usually the lender's standard variable rate. It is normally much higher than the initial rate, which is why most landlords remortgage before the deal ends.

How often do buy-to-let mortgage rates change?

Lenders can reprice at any time and often do so several times a month. Rates move with the Bank of England base rate, market expectations of future interest rates, and each lender's appetite for new business.

Do buy-to-let mortgage rates depend on my credit score?

Yes. A clean credit history gives you access to the widest range of lenders and the lowest rates. Specialist lenders accept missed payments, defaults and county court judgments in many cases, but at a higher rate and usually with a larger deposit.

Does a bigger deposit get a better buy-to-let rate?

Yes. Rates are priced in loan-to-value bands, and each lower band is generally cheaper. Moving from 75% to 65% LTV, for example, typically unlocks noticeably lower pricing.