Lending is booming in the buy-to-let sector according to new data just released, it’s hit the highest point since 2007. Lenders are reporting a massive surge of applications prior to the 1st April stamp duty increase deadline. Figures are showing lending in excess of £8bn from January of this year and this figure is likely to be much higher by the end of March. The proportion of buy-to-let lending has increased to 17.1% of total lending, balances outstanding on landlord mortgages have now climbed to over £178bn. Lenders are quick to point out that even with all the negative publicity surrounding buy-to-lets landlords simply just don’t see it that way. Lenders are also responding in a very positive manner by bringing out more and more innovative mortgages to meet the needs of the landlord. Most lenders are reporting fixed rate deals are currently the most popular plans with borrowers seeming to be cautious amid fears of a rate rise in the future. Interest rates: Overall product interest rates have fallen to the lowest since figure since 2007, great news for the landlord in these torrid times. In the final quarter of 2015, the average interest rate fell to just 2.71%. Fixed-rate products continued to be dominant plan in 2015 and the same is following in 2016. Experts are predicting there will be a rate rise, perhaps towards the end of the year but nobody really knows. Landlords are wise to be cautious when selecting a mortgage and looking forward a fixed deal may be very prudent business. It is very sound advice to seek professional assistance via a broker when selecting a new or re-mortgage as there are so many to choose from. We have a team of fully qualified advisers waiting to assist.
