Mortgage Rate War!

Recently there has been a sudden plunge in mainstream mortgage rates. Due to this lenders have started to offer 10-year fixed rate loans at less than 3% and this has sparked a rate war, which is spreading into buy-to-let. According to a specialist landlord broker, there were more than 800 buy-to-let loans available however this number has increased by more than 100 in the last 3 months. As in the owner-occupier market, borrowers with the biggest deposits fare best, but borrowing costs are falling in nearly every category of landlord.

Recently there has been a sudden plunge in mainstream mortgage rates. Due to this lenders have started to offer 10-year fixed rate loans at less than 3% and this has sparked a rate war, which is spreading into buy-to-let. According to a specialist landlord broker, there were more than 800 buy-to-let loans available however this number has increased by more than 100 in the last 3 months. As in the owner-occupier market, borrowers with the biggest deposits fare best, but borrowing costs are falling in nearly every category of landlord.

A 40% deposit alongside good credit history could garner a landlord a market-leading five year deal at 4.2%. The best 2 year landlord loans charge around 3.5%. These rates are marginally lower than 6 months ago. As rents are remaining stable or rising, these new, low rate mortgage deals offer landlords the opportunity to boost their rates substantially. The average of all fixed rate loans currently available is now just 3.82%.

However do not be disheartened if you only have a small deposit, it is becoming easier to obtain loans for you too as lenders are looking more kindly on landlords wanting to refurbish a property or want to buy properties to let to multiple tenants as houses of multiple occupation.

 

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