Landlords Have Double the Choice of Buy to Let MortgagesMake Text Bigger
The number of buy to let mortgages has more than doubled over the past three years – with more special deals only available from brokers.
Landlords and property investors can choose from 483 different mortgages – up from 237 in October 2008, according to independent financial monitor Defaqto.
The number keeps rising as more lenders expand their ranges or join the market.
The cheapest fixed rate mortgage is the Platform four-year fixed rate deal at 4.79% available to January 31, 2016.
Open to landlords with at 60% loan-to-value or less, the deal has a flat fee of £950, plus a free valuation and free legal fees for remortgages.
Godiva has also revamped several buy to let loans recently, including base rate trackers capped until the end of 2014.
The mortgages come at 65% loan-to-value or less with no early repayment charges, with some fee-free options.
The Defaqto findings also highlight that many landlord mortgages are only available from brokers.
- Seven out of 10 of buy to let mortgages were broker-only or available from brokers and providers directly in 2008 – this has increased to 86%.
- The number of loans exclusive to brokers has grown from 24% to 60% in the same period.
- The number of buy to let lenders has increased from 56 to 63 – with 15 lenders offering deals exclusively through brokers, 18 deal directly with borrowers, while 30 work with brokers and borrowers.
David Black, Defaqto’s Insight Analyst for Banking, said: “The last few years have seen significant growth in the number of buy to let mortgage products on the market. This shows that, although the buy to let sector has contracted in terms of lending levels in recent years, the market is certainly becoming more buoyant with buy to let regarded by many as a potential growth area.
“Our analysis also indicates that intermediaries are becoming ever more important within the specialist buy to let mortgage sector, with the number of brokered products increasing rapidly since 2008.”
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.