Are lenders sugar-coating their buy to let mortgage offering?
There’s no doubt that the terrain for landlords seeking a buy to let mortgage has become more arduous over recent years. However, don’t let this put you off as it’s not all bad news if you want to enter the rental market as a property owner.
The increased number of complexities, around stamp duty and affordability regulations, has not gone unnoticed by the buy to let mortgage providers. As a consequence, lenders have sought ways of keeping the market alive and supporting landlords by improving their ranges. The improvements could affect:
- the rate offered
- the level of flexibility available at the stage of underwriting
- the inclusion of incentives, such as cashback
- better terms and conditions
Where other 2 year fixed mortgage rates are gradually increasing, the average 2 year for a buy to let mortgage is decreasing, making repayments cheaper. The most recently reported average figure has dropped since the beginning of the year from 2.94% to 2.91%.
By contacting Deal Direct, we can research the whole of the market for you and simplify the process of finding the best deal. Our experts can guide you through the differences in lending criteria, helping you to decide not only which product but which mortgage provider would be the most appropriate match for you.
To either launch your career as a landlord or to develop it as profitably as possible, the advice would be to seek qualified assistance and speak to a Deal Direct advisor. Call us today on 0800 048 8828.
Please note that Deal Direct is regulated to offer independent mortgage advice; however, we are not regulated to offer general financial advice. If you want to discuss the suitability of a property as an investment, you will need to contact an independent financial adviser.
Buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
- applicants who are letting to buy
will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.