Buy-to-let (BTL) landlords with mortgaged properties faced another change in April, as the phasing out of mortgage interest tax relief continued. Landlords can now only deduct 50% of the cost of their mortgage borrowing; this rate will reduce again to 25% next year, before being brought down to 0% in 2020. This is especially concerning for landlords who have or are seeking large BTL mortgages.
Accordingly, it’s never been more pressing for landlords to ensure the actual cost of their mortgage borrowing is as cheap as possible. Fortunately, whether you’re an individual or portfolio landlord, there are plenty of good options available, even if your BTL mortgage is on the larger side.
Our product of the week is a prime example of how cheap large BTL mortgages can actually be, providing you know where to look. Offered at a rate of just 1.97% on a 2-year fixed basis, this is an excellent rate for a potentially large mortgage. Taking out a 2-year fixed rate will also help to keep your payments stable over the next two years, allowing you to plan effectively for the phasing out of mortgage interest tax relief.
This product is available for borrowing up to £1million, at a loan to value (LTV) of 75%. This could therefore be an excellent option for landlords of London properties, where property values are so much higher than the average BTL investment.
- 2-year fixed rate
- Loans up to £1million
- Up to 75% LTV
Alternatively, if you’re a portfolio landlord—that is, a landlord with four or more mortgaged rental properties—this lender can also offer a very similar product at just 1.99%, again up to 75% LTV.
This product offers a good balance between a high LTV and a low interest rate, which are two common priorities for landlords looking for large BTL mortgages. If you would like to know more, we would be happy to help.