11:15 AM, 28th October 2010, About 12 years ago
Buy to let mortgage rates are steadily falling while the number of lenders is increasing.
BM Solutions is the latest lender to cut buy to let mortgage rates – by between 0.31% and 0.45% on a range of loans.
The intermediary-only lender has trimmed rates to bring products in line with those offered by other lenders.
The deals are all at 75% loan-to-value (LTV). Arrangement fees from £999 apply.
Aldermore Bank has launched a new product which is for landlords buying or remortgaging – again only available through intermediaries.
Both Aldermore products come with a 1.5% arrangement fee, free legals and no minimum income needed.
Loans are available up to £600,000 to 75% LTV for up to two buy to let properties per investor.
Colin Snowdon, chief executive of Aldermore’s residential mortgage lending business, said: “The Bank of England’s recent decision to hold base rates at 0.5% for the 19th consecutive month, adds weight to the argument that we may be in for a sustained period of low interest rates.”
In 12 months, the number of lenders with open mortgage books has grown from 45 to 54.
For property investors looking for mortgages, the biggest hurdle is putting down a deposit. Only 12 deals are available at 80% LTV, up from just three or four this time last year.
Lenders seem comfortable with the risk at 75% as about 100 mortgage and remortgage products on offer are at this level.
The best rates are reserved for landlords and investors with larger deposits – with up to 150 mortgages in the market for 60% – 65% LTV borrowing.
Over the year, fixed rates have fallen by an average 15% or so from just over 6% to about 5.50%.
Meanwhile, average standard rates have gone up from 4.50% to around 4.75%.
To arrange a review of your portfolio or to discuss buy to let mortgages please call our Customer Care Team on 01603 894525. They will ask you for some very basic details about your portfolio and personal circumstances and then refer you to an appropriate Consultant to assist you.