Cashback Remortgages · Buy-to-let
Comparing Buy-to-Let Rates and Fees
Buy-to-let deals often trade a lower rate for a higher fee, sometimes a percentage of the loan. Comparing on total cost, not the headline rate, is essential.
Rate vs fee trade-off
Some BTL products have percentage-based fees that can be large on higher loans. A lower rate with a big fee can cost more than a higher rate with a small fee over the deal period.
Fees affect the rental stress test too if added to the loan.
Compare total cost
Work out the payments over the deal period plus fees for each option and compare the totals. Advice helps weigh rate, fee and the stress test together.
Sources and further reading
General mortgage information, not a personal recommendation. Lender criteria and scheme rules can change. Ask an adviser about your circumstances and a solicitor or tax adviser about legal or tax questions. Your home may be repossessed if you do not keep up repayments on your mortgage. Most buy-to-let mortgages are not regulated by the FCA.
Discuss the next step for your mortgage
Understand your options before you make a decision.