Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
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With a limited number of people interested in applying for a new mortgage of any type at the moment, product numbers being at all-time highs and competition still pushing interest rates down, mortgage providers seem to be turning to cashback incentives as a way to stand out from the crowd.
The latest research from Moneyfacts.co.uk highlights that cashback incentives as a key product option are becoming more widespread within both the residential and buy-to-let (BTL) mortgage market.
Darren Cook, Finance Expert at Moneyfacts.co.uk, said:
“An incentive of cashback to assist landlords in covering the costs of a buy-to-let mortgage is becoming a more prominent feature of the buy-to-let market. Especially considering last year’s upheaval in this sector, landlords will be looking for any way to cut costs and increase their margins. It seems that providers are obliging.
“The current number of products with a cashback incentive stands at 444, which is nearly double the number of products that were available two years ago. Furthermore, 266 of these products are available at the higher loan-to-value tiers of 70%, 75% and 80%, which could make them particularly appealing to first-time landlords.
“Despite the increased number, the percentage of the BTL market that these deals encompass remains below 20%, which means interested landlords will need to do some digging to find the right product with the right incentive(s). As always, borrowers will need to compare mortgages by taking all their features into account, rather than focusing solely on the incentive package, rate or fees.”
The Property118.com mortgage sourcing tool is available for you to use with our compliments. Once you have found a product you like simply click the “ENQUIRE” button and complete your contact details in order to progress matters.
This system can be used to source both residential and buy to let mortgages. It is updated live by mortgage lenders and even includes mortgage products available exclusively via broker networks. You can compare total costs of mortgages, including fees, over any period of time. Click Here
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