10:12 AM, 12th May 2011, About 11 years ago 5
Lenders are encouraging buy to let landlords to invest in more property by increasing the number of mortgages and dropping interest rates.
Independent financial information firm Moneyfacts monitors the market and has disclosed borrowers can choose from around 463 buy to let deals – 55% up on the 299 mortgages offered 12 months ago.
The market is also becoming more competitive in other ways – the number of buy to let lenders is up 33% – from 48 to 64 in a year – while interest rates are dropping to an average 4.97%, down from an average 5.30% in May 2010.
Confidence is returning to the buy to let market, explained Louise Holmes, of Moneyfacts, as
“These latest figures, particularly the reduction in the average rate, suggest that the buy-to-let market could be returning to a competitive state,” she said.
“This will no doubt please landlords and property investors who have endured a tough time over the past few years.”
Recently, the Nationwide Building Society, one of the largest buy to let lenders through subsidiary brand The Mortgage Works, said the society would rather lend to buy to let landlords at 60% loan to value than first time buyers.
The introduction of a new buy to let product range by Skipton Building Society has reinforced the Moneyfacts view.
The lender is offering 60% and 70% fixed rate mortgages over 24 and 36 months at rates from 4.29% to 5.39%.
Fees are £245 on application and £1,250 on completion. Remortgages come with a free valuation and legal fees.
Leeds Building Society has cut rates from 4.44% to 4.29% on a 2 year discount package available at up to 70% loan to value.
Leek United Building Society’s new 2-Year 5.25% fixed rate mortgage comes with a low £99 arrangement fee and a £100 booking fee. The loan is for a minimum £75,000 up to £500,000 at up to 75% loan to value.
That adds up to a minimum £25,000 deposit on minimum borrowing. Rent cover is 125%.