You are here: Home - News -

Cheapest ever BTL fixed-rate mortgage launched

  • 17/08/2017
  • 0
Cheapest ever BTL fixed-rate mortgage launched
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 and is only available direct from the lender.

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

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


Falling BTL costs

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

David Hollingworth, associate director at L&C, said that across the market lenders were under pressure to either price more competitively or adapt their criteria in order to meet landlord requirements.

He added: “Competition is strong, so what we tend to see is lenders pulling both of those levers. There are some lenders that are more specialist than others and so are able to deal with some types of property or borrowers that mainstream lenders won’t, but when it comes to price and criteria it’s about getting the right blend.”


True cost

Nonetheless, the buy-to-let market remains in a tricky position. New data from UK Finance revealed that both gross buy-to-let lending and the number of loans had fallen 6% in the second quarter of 2017, a trend blamed on the succession of tax and regulatory changes the sector has seen.

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 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.”

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • Jo Wilson from Legal & General Home Finance talks about her Best BDM nomination and her love for the equity release…
  • Sponsored content: Four reasons your client wants a product transfer by Halifax Intermediaries…
  • Nationwide trims rates as Accord ups cashback on buy-to-let deals -

Read previous post:
digital; technology; lights
Chatbots, application-free lenders and consumer hubs – Moving the mortgage tech debate on

Discussions surrounding mortgage technology are far more frequent than concrete software launches, but that does not stop the industry debating...