Fixed rate deals the order of the day

Two thirds of (66.8%) re-mortgaging landlords are opting for fixed rate mortgages, research has revealed. The small and multiple landlords are both typically looking for 2 or 3-year fixed rate deals and in some cases far longer periods.

Over 70% of mortgage brokers said first-time buyer and re-mortgage clients are applying for shorter fixed deals while 30% 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 the fixed term market. Landlords who have suffered and are suffering all the new tax legislations see fixing a rate as an important part of their future planning. When fixing a deal expenses can be controlled and budgeted for over the term which is proving attractive to the majority of landlords.

The best deals do not tell the whole story as rates vary depending on how much equity landlords have or how big a deposit they can invest. The trend in the past two years has been to fix a medium-term deal (2-3 years) as there are potential longer-term savings to be made if rates were to reduce.

This does seem sound advice as we are in a very volatile market at this present time, with the Brexit talks have a huge baring on the long-term future.

Investors have a massive choice of buy-to-let mortgages and need to be able to search the whole market. There are so many options available it is recommended to seek professional (independent broker) mortgage advice.

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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.