Landlords prefer fixed deals:
Two thirds of (65%) re-mortgaging landlords are opting for fixed rate mortgages, research has revealed. Customers are typically looking for 2 or 3-year fixed rate deals and in some cases far longer periods. Two thirds (69%) of mortgage brokers said first-time buyer and re-mortgage clients are applying for shorter-term fixed deals while 27% said they are looking for longer-term fixed rates.
The ongoing mortgage rate war among leading lenders has seen the launch of a range of low rates especially in fixed term deals. Landlords with all the tax changes coming into effect next year see fixing a rate as an important part of their future planning.
The best deals do not tell the whole story of course as deals vary depending on how much equity landlords have or how big a deposit they can find. The trend in the past two years has been to fix a medium term deal as there are potential longer term savings to be made if rates fall even lower.
Investors need to be able to search the whole market and to look for as wide a range of deals as possible before making a decision on their next mortgage. There are so many options available it is recommended to seek professional mortgage advice.
Need some help:
If you are looking for a new or re-mortgage please do make contact and one of our fully qualified advisers who will be happy to assist.