Buy to let mortgage rates fall as demand increases
Lenders are continuing to cut interest rates for buy to let mortgages.
Research from Moneyfacts has shown that over the last 12 months an average two year fixed rate deal has fallen from 3.59% to 3.32%, while five year fixed rates have fallen to 4%, which is 0.3% lower than they were in the same month of the previous year.
Over a five year period, the comparison falls even wider as two year fixed rate mortgages have decreased down from just over 5%. A five year fixed rate in 2011 would have been an average rate of 6.2%; a remarkable difference.
It was also reported by a separate source that the end of March saw approximately 50% of all home sales sold to landlords and investors.
With changes to the stamp duty now enforced, it is predicted that these falling rates will still keep many landlords and investors interested in the buy to let sector. The slight increase in cost from land tax will be outweighed not only by the profit made in capital growth and rental income, but be spurred on by the lower mortgage rates.
The news follows on from recent findings that buy to let still remains one of the most popular investment choices for retirement.
What does sequre have to say?
Graham Davidson, managing director of Sequre Property Investment, comments on the lower mortgage rates –
“These low rates are just another positive aspect of why buy to let still remains a viable form of investment for those who choose to invest in property to supplement their income. Using finance as a method to fund buy to let allows investors to be open to the prospect of gearing, spreading their risk over multiple properties and reaping the most from their assets.”
If you’re looking to make the most of the low interest rates, we can recommend mortgage brokers who specialise in buy to let and can assist investors who are considering using finance to fund their investment purchase. We work with a team of professionals who strive to find the best deals on the market and can help you find a financial solution that suits your personal needs. Whether you’re looking for a straight forward mortgage, or you’re wanting to refinance an extensive portfolio of properties, contact our team today on 0800 011 2277 to find out how we can help.