Is the 3 year fixed rate buy to let mortgage product disappearing entirely?
The most popular product among landlords in recent months, lenders have reported, is the 5 year fixed rate buy to let mortgage.
In the prevailing market conditions, landlords are seeking certainty and an ability to plan ahead. As no one really knows what effect the Brexit negotiations will have on the economy, most are fearing the worst and assuming mortgage rates will increase.
There has consequently been a rise in the number of 5 year fixed rate enquiries and a fall in the shorter 2 and 3 year fixed terms. In response, one lender, The Vernon, has withdrawn it’s 3 year fix entirely from its buy to let mortgage range.
Although the 3 year fixed rate has been withdrawn, the lender hasn’t abandoned 3 year propositions entirely and has a discounted rate available.
The Vernon’s buy to let mortgage ranges are available to private landlords, limited companies and those offering holiday rentals.
We are 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.