Fixing the rate now could be cheaper than betting against rate rises?

Fixed rate mortgages are now proving to be extremely popular with landlords as they look to fix ongoing expenses. Low loan-to-value mortgages are now proving better value than their tracker equivalents at 2-, 3- and 5-year periods so check out the deals on offer.

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 landlords showed they are looking to the long term and wanting to know the outgoings will be fixed, thus giving stability.

Landlords faced a restriction in product numbers during lockdown but now lenders are reintroducing competitive buy-to-let deals.

Landlord mortgages have grown in number over the last two months, with 283 more buy-to-let products added to the market, according to Moneyfacts.

The financial information provider said that landlords will be pleased to see that the choice of products has improved recently (1,738), after dropping to only 1,455 total products offered in March.

There are now 134 more two-year fixed products available at the start of May 2021, and 164 more five-year fixed rate products are on offer, while there’s been a fall in some mortgages for landlords with a large 40% deposit.

The overall market is still far below the levels seen in March (2,897) before the coronavirus crisis took hold in the UK.

Due to the vast range of products available it is important to get professional advice, so please do contact us and we will be pleased to help.