Are we about to see a buy to let mortgage rates war?

In an effort to keep the buy to let mortgage market alive lenders are cutting rates to new low levels. The Chancellor’s attempt to slow buy to let by introducing a stamp duty increase has led to a pricing war between lenders. 

Lenders are now doing all they can to cut rates to help landlords offset the costs they will now incur when investing in property.

On the downside the Bank of England is said to be preparing measures to allow them to enforce stricter affordability checks in a bid to curb risky buy to let lending.

Rates for landlords now start at around 4% for a 5 year fixed term and 2.5% for a 3 year fixed rate term, and so if you would like to purchase a rental property but missed the stamp duty deadline, call 0800 048 8828 to find out what kind of rate you can expect for your deposit level. You might find rates are now so low you can offset some of your extra costs.

If you would like impartial mortgage advice and a low rate quote, call a specialist Deal Direct buy to let mortgage adviser on 0800 048 882.

Average BTL fixed rates have now fallen to 3.32% for a 2 year fix and 4% for a 5 year fix. Available products include a 3 year fix from Virgin at 2.48%.

As saving rates are so low more retirees are choosing to invest their pension pot in property. With savings rates unlikely to increase for the foreseeable future its likely this trend will continue.

Please note: 

Buy to let mortgage applications from: 

• applicants who intend to benefit from house price growth
• applicants who intend is to benefit from rental income
• applicants who are letting to buy 

will be treated as 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.

If you are looking for a buy to let mortgage, or want mortgage advice please call us at Deal Direct.

We are fully qualified to offer mortgage advice, however we are not regulated to offer advice as to the suitability of property as an investment. For general financial advice you need to contact an IFA.

To discuss your buy to let mortgage options, call a Deal Direct adviser on 0800 048 8828.