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Looking for the best buy to let mortgage rates?

If you’ve been thinking of becoming a landlord, now is a good time to put your plans into action.

The demand for rented accommodation in the UK has never been higher – and it’s set to keep on climbing as potential first time buyers take longer to get a foot on the property ladder.

There are currently four tenants vying for every rental home, which is driving up rents across the country, so the average landlord yield is looking healthy.

There are special mortgages specifically for the buy to let sector and because business is booming, the number of loans available has also increased. Lenders are offering almost 500 buy to let mortgages.

Landlords are usually expected to provide a higher deposit than, for example, a first time buyer, with amounts of 30 to 40 per cent often required.

Here is a selection of the best buy to let mortgage rates we found.

Skipton Building Society is offering a two year fixed rate mortgage at 3.99 per cent, which reverts to 4.45 per cent plus bank base rate for the rest of the term. It is available up to 60 per cent LTV, which means borrowers would need a 40 per cent deposit. The completion fee is £995 and the arrangement fee £245. To qualify, a minimum of £50,000 must be borrowed, up to a limit of £500,000.

Coventry Building Society’s Flexx Fixed mortgage for landlords has a set rate of 3.99 per cent for two years, after which it reverts to a standard variable rate of 4.74 per cent. It is available up to 65 per cent LTV so it requires a deposit of at least 35 per cent. The booking fee is £250 and the arrangement fee £700. One mortgage valuation, worth up to £700, is included in the price.

Paragon Mortgages specialises in loans for professional landlords. It is offering a two year fixed buy to let mortgage rates starting from 5.15 per cent for a 65 per cent LTV package, which would require a 35 per cent deposit. At the end of the two year term, the standard variable rate plus 0.5 per cent would apply for the rest of the mortgage. Up to £2 million can be borrowed, depending on the agreed LTV.

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