Investing in a buy-to-let property can be a lucrative venture, providing a steady stream of rental income and potential capital appreciation. However, securing the right buy-to-let mortgage is crucial to maximising your investment returns. In this article, we’ll explore the best mortgage lenders for buy-to-let mortgages in March 2025, examining their rates, fees, and statistics to help you make an informed decision.

1. West One

West One is a prominent player in the buy-to-let mortgage market, offering competitive rates and flexible terms. As of March 2025, West One provides some of the best rates for both 2-year and 5-year fixed-rate buy-to-let mortgages.

  • 2-Year Fixed Rate: West One offers a 2-year fixed-rate mortgage with an initial rate of 2.29% for a loan-to-value (LTV) ratio of 65%. The fees associated with this mortgage are 9.99%.
  • 5-Year Fixed Rate: For a 5-year fixed-rate mortgage, West One offers an initial rate of 2.39% for a 70% LTV, with the same fees of 9.99%.

While the rates are attractive, it’s essential to consider the high fees associated with these mortgages. Despite the fees, West One remains a popular choice due to its competitive rates and flexible lending criteria.

2. The Mortgage Works

The Mortgage Works (TMW) is another leading lender in the buy-to-let mortgage market, known for its competitive rates and comprehensive product offerings.

  • 2-Year Fixed Rate: TMW offers a 2-year fixed-rate mortgage with an initial rate of 3.94% for a 65% LTV, with fees of 3%.
  • 5-Year Fixed Rate: For a 5-year fixed-rate mortgage, TMW provides an initial rate of 3.99% for a 75% LTV, with the same fees of 3%.

TMW’s rates are slightly higher than West One’s, but the lower fees make it an attractive option for investors looking to minimize upfront costs.

3. Virgin Money

Virgin Money is a well-established lender offering competitive buy-to-let mortgage rates and a range of flexible products.

  • 2-Year Fixed Rate: Virgin Money offers a 2-year fixed-rate mortgage with an initial rate of 3.99% for a 60% LTV, with fees of 3%.
  • 5-Year Fixed Rate: For a 5-year fixed-rate mortgage, Virgin Money provides an initial rate of 3.99% for a 60% LTV, with the same fees of 3%.

Virgin Money’s consistent rates and reasonable fees make it a reliable choice for buy-to-let investors seeking stability and predictability in their mortgage payments.

4. Newbury Building Society

Newbury Building Society is known for its competitive variable-rate buy-to-let mortgages, offering attractive rates and flexible terms.

  • Variable Rate: Newbury Building Society offers a variable-rate mortgage with an initial rate of 4.65% for a 75% LTV, with fees of £1,200. This rate includes a 1.75% discount for the first three years.

Newbury Building Society’s variable-rate mortgage is an excellent option for investors who prefer the flexibility of variable rates and are willing to accept the potential for rate fluctuations.

5. CHL Mortgages

CHL Mortgages is a specialist buy-to-let lender offering competitive rates and tailored products for property investors.

  • 2-Year Fixed Rate: CHL Mortgages offers a 2-year fixed-rate mortgage with an initial rate of 2.83% for a 65% LTV, with fees of 7%.

CHL Mortgages’ competitive rates and specialist focus make it an attractive option for investors seeking tailored solutions for their buy-to-let properties.

Market Trends and Statistics

The buy-to-let mortgage market has experienced significant fluctuations in recent years, influenced by changes in interest rates, government policies, and economic conditions. As of March 2025, the market is showing signs of stabilization, with rates remaining relatively steady compared to previous years.

  • Interest Rates: The average interest rate for a 2-year fixed-rate buy-to-let mortgage at 75% LTV is 4.26%, down from 5.40% in December 2023. This reduction is attributed to the swap rate market and lenders’ willingness to absorb higher funding costs in hopes of future rate reductions.
  • Fees: Fees associated with buy-to-let mortgages vary significantly between lenders. While some lenders, like West One, charge high fees (9.99%), others, like TMW and Virgin Money, offer more reasonable fees (3%).
  • Loan-to-Value Ratios: LTV ratios play a crucial role in determining mortgage rates and fees. Lenders typically offer lower rates for lower LTV ratios, as these loans are considered less risky. For example, West One offers a 2.29% rate for a 65% LTV, while the rate increases to 2.39% for a 70% LTV.

Choosing the right mortgage lender is essential for maximizing the returns on your buy-to-let investment. In March 2025, several lenders stand out for their competitive rates, flexible terms, and reasonable fees. West One, The Mortgage Works, Virgin Money, Newbury Building Society, and CHL Mortgages are among the top choices for buy-to-let investors.

When selecting a mortgage, it’s crucial to consider not only the interest rates but also the associated fees, LTV ratios, and the lender’s reputation. Conduct thorough research and consult with a mortgage advisor to ensure you find the best deal for your specific needs and investment goals.

By carefully evaluating your options and staying informed about market trends, you can secure a buy-to-let mortgage that supports your investment strategy and helps you achieve long-term financial success.