Buy to Let Mortgage Search

By Andy the stuff doer

Searching for and then comparing buy to let mortgage deals is a hell of a lot harder than it used to be. Although the availability of residential mortgage products has increased, lenders are avoiding Buy to Lets.

Little competition in the market has lead to the lenders devising even more devious way of disguising how expensive they are. It’s taken me plenty of head scratching to work out the best deal for me.

I started with the normal comparison site searches then delved deeper into the details of the better looking offers. I also tried the more specialists sites and a broker. 

All the info I fed in to a spreadsheet so I could quickly asses and compare the products using my own criteria. The spreadsheet takes into account.

  • Initial Rate
  • Initial Rate period
  • Follow on rate
  • Arrangement fees
  • Valuation fees
  • Other fees eg. broker
  • Loan interest to rental income criteria

I could develop the spread sheet further but if you want to try it out for yourself, here it is-

Buy To Let Mortgage Comparator Spreadsheet   

I enter the necessaries in the green cells and the results are given as running and averaged totals over 1,2,3,4 & 5 years. I’ve based my decision on these figures. 

It doesn’t give the monthly payment as it a pointless figure for a comparison.

I’ve left some figures in the download so you can see how it works. The interest to rental part was really useful to set the loan to value for the Natwest criteria.

Have a play and let me know what you think.

I’ve ended up going for the Natwest option, It helps that I’m an existing customer and get free valuation and legal costs. The Bank of China option looks really interesting if you can get to one of their branches to apply directly. I’d like to hear of any experience you might have.

Good luck with your search.

 

3 Responses to “Buy to Let Mortgage Search”

  1. You can’t really blame them for being a bit skeptical. There’s a lot of uncertainty that goes along with a buy to let. When the market stabilizes and the demand for affordable living space goes back up you’ll see a lot more lenders looking favorably on this type of investment.

  2. Hi Annette, Skeptical is one thing but it’s the case at the moment that they really don’t want to lend. I don’t think its real risk that they are considering, they just have more potentially profitable things to do with the money they have, like trading on money and stock markets. It will turn around at some point. In the mean time my ecconomic activity is serverly curtailed.

  3. Just a quick updated posted here

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