16th
Jul 2021
The latest research from an online buy to let mortgage broker shows that there are now 41 BTL mortgages with an all-time low of 1.5 per cent or less.
The research reveals there is even one lender offering a BTL mortgage at 1.0 per cent but just for existing clients.
The firm’s chief executive Angus Stewart says: “With the housing market racing to the finishing line of the [September 30] Stamp Duty holiday and with rents on the rise in most regions many landlords are looking to increase their property portfolio. Unsurprisingly lenders in the buy to let mortgage market are keen for a slice of this business and competition is hotting up in terms of pricing and the variety of products on offer.”
He continues: “Our advice to landlords though is to always look beyond the headline grabbing price. Lenders are still keen to manage their risks and some of the better deals come with lower Loans to Value of 60 or 65 per cent. Other lenders are limiting their offers to remortgages or product transfers. But this is not always the case and there are definitely some bargains to be had.”
However Stewart advises Landlords to make themselves fully aware of lenders’ specific products with the affordability and lending terms.
“Some lenders are not willing to lend to first time landlords or those that are not a homeowner. If you are looking for a buy-to-let mortgage for an HMO or for a holiday let, then you may find yourself looking for a more specialist lender but here too there are some competitive deals.”
The research also reveals 10 out of the 41 BTL mortgage offers of 1.5 per cent or below are not subject to any arrangement fee. Arrangement fees can cost landlords between £995 and £1,995. All of the 41 offers are for fixed rates and most of them are fixed over two years.
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