Buy-to-let mortgage choices keep growing
Competition has intensified in the buy-to-let mortgage market as providers see this as an area of growth for 2019 and beyond. More products as well as cheaper charges and fees are now common place, and this has to be good news for the investor. All this may seem surprising due to the Governments crack down on buy-to-lets but the facts are this market is very much alive.
The huge choice of buy-to-let mortgage products has beaten all the previous records. There are now over 1000 different products available compared to 850 at the end of last year. We are also finding new lenders are joining this growing market.
The lowest interest rate mortgages and lowest fees have been reserved for low loan to value ratios. So the larger the deposit the better the deal, but there are still some very good deals available for the clients with smaller deposits.
Fixing the rate cheaper than betting against rate rises?
Fixed rate mortgages are now proving to be better value than the tracker type plans, particularly for lower loan-to-value borrowers.
Even for fixed rate higher loan-to-value mortgages, the current cost of borrowing is only marginally higher than tracker products. Fixed rate plans are without doubt becoming more popular especially with the investor with multiple properties.
A recent survey of investors showed they are looking to the long term and wanting to know the outgoings will be fixed, thus giving stability.
Need some assistance?
Due to the vast range of products available it is important to get professional advice so please do make contact and we will be pleased to help.