Competition among lenders lowers rates for landlords

admin    Uncategorized     agents

Buy-to-Let Mortgages:

Mortgage lenders have been reducing their lending rates,
providing some cheap mortgage deals to keep landlords in the market.

Over the last couple of years, landlords found themselves operation
in a tougher landscape, having to adjust to stricter lending criteria, the phasing
out of tax relief on mortgage interest payments over a four-year period to April
2020, and increasing letting regulations.

Last week the Halifax Building Society and Nationwide both cut
their buy-to-let rates, on some deals by 0.45%. Barclays joined in, reducing
some deals from 1.59% to 1.55% on a two-year fixed-rate mortgage with a 40%
deposit, and a reduction from 1.88% five-year fix to 1.83% and a minimum 25%
deposit.

Broker only platform, Mortgage Brain, informed the Sunday Times that the average 40% deposit
tracker mortgage is 3% cheaper than it was three months ago, and a 30% deposit
tracker deal is 2% cheaper than in March.

This equates to, for example, a landlord taking out a
£150,000 mortgage saving £234 per year with a 40% deposit, and £144 per year
with a 30% deposit.

Aaron Strutt of broker Trinity Financial told the Sunday Times:

“The buy-to-let market has taken a real hit – there simply
is not as much interest from landlords as lenders have been used to over the
years,�

“Lenders have been targeting the buy-to-let re-mortgage
market to drum up some business and, incredibly, they keep cutting rates to
tempt landlords in.�

There’s currently a record number (1,405 first-time
buy-to-let mortgages) of deals available to new landlords, indicating that the
new rules designed to tighten lending don’t appear to have shaken lenders’
confidence with new landlords.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Competition among lenders lowers rates for landlords | LandlordZONE.

View Full Article: Competition among lenders lowers rates for landlords

If you enjoyed this article please consider sharing it!