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Buy To Let

Free buy-to-let mortgage comparison tool launches

Paloma Kubiak
Written By:
Paloma Kubiak

Landlords will be able to compare buy-to-let mortgage deals, calculate rental figures and receive personalised results from details supplied via a new, free comparison tool.

The free Buy-To-Let Direct mortgage finder tool has launched to help landlords “make sense” of all the options available to them.

It provides an online buy-to-let mortgage search tool with a built-in rental calculator and filters including tax rate bracket, portfolio size, tenant type, and limited company status to tailor products for landlords.

Buy-To-Let Direct offers a whole of market service, accessing over 95% of the BTL products available in the UK. This includes specialist lenders and products that aren’t available on the high street, such as products for houses in multiple occupation and multi-unit blocks.

The tool is free but Buy-To-Let Direct charges applicants £299 for each mortgage arranged through it, while it also earns a procuration fee (commission) from lenders which is normally a percentage of the loan amount. It’s currently offering £50 M&S vouchers for anyone completing their first BTL mortgage.

The tool launch comes as the BTL sector has seen numerous regulatory and tax changes, including the 3% stamp duty surcharge for second homes and the withdrawal of BTL mortgage interest tax relief.

Covid-19 has also presented challenges for landlords, with the housing market effectively shutting down during the first peak of the virus and numerous buy-to-let lenders withdrawing their mortgage product ranges.

But Buy-To-Let Direct said there are encouraging signs that the BTL market is making a recovery since the housing market opened up again with the return to visual property inspections. There has been a flurry of activity from lenders as they reassess their BTL mortgage propositions in response to greater demand and competition.

However, despite there being more lenders and products in the market, it can be challenging for BTL investors to find the best financial solutions to suit their specific requirements.

Jane Simpson, managing director at Buy-to-Let Direct, said: “The buy-to-let mortgage market is increasingly complex following the swathe of regulatory and tax changes, so finding the right product can be mind boggling.

“We believe there is a gap in the market for a totally transparent comparison tool that gives landlords access to information they would normally only be able to find out via a mortgage broker.

“A lot of landlords are tech-savvy and like to research information about financial products directly then undertake their own analysis of the options available. Buy-to-Let Direct provides this facility to landlords with the added support of a team of buy-to-let experts on hand to help them throughout their decision-making process.”

Simpson added that the mortgage finder tool takes account of tax status and portfolio size to provide personalised results.