Buy-to-Let Mortgages: The Current State of the Market

Many buy-to-let investors buy property with a mortgage. This can help investors leverage their cash for multiple properties or other kinds of investments. When renting out the property, the rental income could more than cover the monthly mortgage repayments, which allows you to have more cash in your pocket. 

Here we’ll look at the current mortgage market and why now is a good time for international buy-to-let investors to lock in competitive deals.

Mortgage products available

Across the board, mortgage choice has expanded to a 16-month high after availability has increased for nine consecutive months, according to data from Moneyfacts. Currently, there are the highest number of mortgage products available for buy-to-let investors since March 2020. 

At the beginning of July 2021, there were 2,709 buy-to-let mortgages on the market. This is the highest number of deals available since the beginning of March 2020, when there were 2,897 products. 

Interestingly, there are 365 more deals available now than in July 2019. This shows the buy-to-let mortgage market has recovered from the impact of the COVID-19 pandemic and is proving to be remarkably resilient after an unprecedented 18 months.

In previous years, it had been more challenging for international buy-to-let investors in particular to take out a mortgage in the UK. However, there are now a growing number of mortgage products available for overseas investors.

Competitive interest rates

Year-on-year average interest rates have increased for buy-to-let mortgages. The average two-year fixed rate has increased from 2.61% in July 2020 to 2.98% this month. During the same period, the average five-year fixed is up from 2.97% to 3.28%.

While interest rates have increased annually, average rates are still lower than in 2019. This shows there are good rates out there, making borrowing more affordable. Because of this, it could be a good time for buy-to-let investors to lock in competitive interest rates.

Compare fees and incentives too

With a growing level of competition among lenders in the mortgage market, there are a number of products available with incentives to entice customers. This is providing borrowers with access to a greater range of different mortgages.

To appropriately evaluate a mortgage deal, it’s recommended to not only look at interest rates. It’s also important to consider the fees and incentives being offered and weigh this up with your personal and financial circumstances. An experienced mortgage broker can help you with this.

How a mortgage broker can help

The UK mortgage market can be difficult to understand. With so much choice on offer, an experienced mortgage broker tracks all of the latest products on the market. Because of this, they can effectively help you assess the mortgages on offer to find the best deal for your unique situation. 

Good mortgage brokers also can help investors understand varying lender criteria and can even help throughout the entire mortgage process. At Chestertons, we have a partner mortgage broker with access to a range of mortgage deals available to international buy-to-let investors.

On each of our property listing pages, we have a mortgage calculator to give you a rough idea of the monthly repayment amounts to expect when buying the property with a mortgage.

Do you have a question about mortgages in the UK? Put a question in the comments below, or contact us at

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