Tue 30 Jan 2018 View all news articles
The average two-year buy-to-let fixed mortgage deal at 75% loan-to-value (LTV) has fallen to a record-low of 2.47%, as many landlords across the UK continue to see their annual mortgage costs fall.
The mortgages costs are falling despite the fact that there was a marginal rise in average mortgage rates towards the end of 2017 as November brought the first interest rate rise in 10 years, the latest figures from Private Finance show.
Though the buy-to-let sector is facing many challenges, one area where landlords have benefited is falling mortgage rates.
But seeking independent advice is becoming increasingly important for landlords to find and be accepted for the best deals, according to Shaun Church, director of Private Finance.
He said: “With house prices on the rise, too large a loan can negate any savings made from low rates, so landlords need to consider all aspects of their mortgage.
“There are particular challenges for portfolio landlords, classed by the Prudential Regulation Authority as those with four or more buy-to-let properties. These landlords now face much more stringent affordability tests and must demonstrate the profitability of their entire portfolio to be accepted for a loan. An independent mortgage broker can help investors navigate these tricky waters and find the most affordable and suitable option for them.”
Source: Landlord Today
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