Simply Business homepage
  • Business insurance

    Business insurance covers

  • Support
  • Claims
  • Sign In
Call Us0333 0146 683
Our opening hours
Knowledge centre

Revealed: new buy-to-let mortgage rate for landlords

2-minute read

Mollie Millman

9 April 2018

Share on FacebookShare on TwitterShare on LinkedIn

Lenders have continued to up their game for landlords by offering another buy-to-let mortgage with a rate of less than two per cent.

The 1.94 per cent deal is being offered by Accord Buy To Let, which is an intermediary lender and part of Yorkshire Building Society.

However, borrowers must have a deposit of 35 per cent to qualify for the two-year fixed-rate deal - which is also only available to existing landlords who are remortgaging.

It follows the launch of a five-year buy-to-let mortgage with a rate of 1.99 per cent from TMW, part of Nationwide Building Society, last month.

The Accord deal comes with a hefty fee of £1,495. High arrangement fees often accompany lower mortgage rates. But it makes sense for those with a larger mortgage to opt for such a deal as they may end up being better off.

Attractive elements of a mortgage deal

Other attractive elements of the Accord deal include a free valuation and no legal fees.

Separately, Accord is also offering a 2.84 per cent five-year fixed-rate deal and a 2.94 per cent five-year option.

For landlords looking to expand the number of properties that they own there is a 2.39 per cent two-year fixed-rate deal or a 2.69 per cent two-year option. These come with free valuations and £500 cashback.

Chris Maggs, commercial manager at Accord Buy To Let, said: “Whether you’re a portfolio landlord with four or more properties or a landlord with a smaller portfolio these new products, coupled with competitive rental affordability requirements, are sure to prove popular.”

Struggling to remortgage?

Lenders have begun offering more competitive deals amid concerns that landlords are struggling to remortgage.

Landlords are required to demonstrate that they can afford the mortgage if interest rates rise significantly - often to as much as 5.5 per cent or more. And those who own more than four properties face specialist underwriting that includes additional affordability tests (which could mean, for example, producing supporting documentation such as business plans).

So while more competitive mortgage rates are available, they may be harder to qualify for.

Earlier this month, the National Landlords Association revealed that 63 per cent of landlords who are aware of these changes believe it makes obtaining new buy-to-let mortgages more difficult. This increases to 70 per cent for those landlords with four or more properties.

Richard Lambert, chief executive of the NLA said: “These findings show that the PRA’s changes seem to be greatly affecting the ability of landlords to find new finance and increase their portfolios.”

He added: “Given that the private rented sector now makes up 20 per cent of the housing market, it is vital that professional landlords are incentivised to continue providing good quality affordable housing to those who need it. This appears to be achieving quite the reverse.”

Get set with tailored landlord cover

Over 200,000 UK landlord policies, a 9/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote today.

Start your quote

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.

Share on Facebook
Share on Twitter
Share on LinkedIn

People also liked

19 November 20202-minute read

Landlords could be targeted in new capital gains tax raid

Landlords could be hit by another massive tax raid, as the Office of Tax Simplification outlines its recommendations for an overhaul of…

Read more

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter


Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub


6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.