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Buy to Let

Is this the cheapest fixed mortgage deal ever offered to landlords?

Mortgage Solutions
Written By:
Mortgage Solutions
Posted:
Updated:
25/08/2017

The Post Office has launched the cheapest ever buy-to-let fixed rate mortgage deal.

According to financial information site Moneyfacts, the 1.33% two-year fixed rate is the cheapest deal ever offered to landlords. It comes with a £1,495 fee and requires 40% equity.

It is slightly cheaper than the 1.34% rate available from Platform for borrowers with the same equity level, though that deal comes with an even bigger fee at £1,999.

The Post Office is targeting the buy-to-let sector, with a host of deals including a three-year fixed rate at 2.38% for landlords with 25% equity, with a product fee of £1,495.

A spokesperson for Moneyfacts said: “Post Office Money is causing a storm in the buy-to-let market by launching some competitive market-leading rates. Priced at 1.33% for two years landlords can now lock into the cheapest ever fixed deal on Moneyfacts.co.uk records, as a result this deal is likely to be a cost-effective option for many.”

“Borrowers looking for a low rate will not be disappointed, however with a large fee borrowers will need to look at the true cost to ensure they get the most cost effective option for them.”

Mortgage costs fall for landlords

The latest figures from Mortgage Brain found that buy-to-let costs are falling across the board, with the cost of an average 70% loan-to-value two-year fixed rate now 4% lower than in May this year. Meanwhile five-year fixes at 60% and 80% loan-to-value are down in cost by 3%.