Prospective landlords that are hoping to take advantage of lower property prices by jumping on the buy to let bandwagon could benefit from a reduced price buy to let mortgage on offer from Mortgage Next. The buy to let mortgage that is on offer has a fixed interest rate of 6.29% for two years, which equates to a 0.96% discount. Typically buy to let mortgages have somewhat higher rates than standard mortgages, so many potential landlords may express interest in the mortgage product.
Funded by Mortgage Express the lower rate buy to let deal is available through Mortgage Next, and requires a minimum 15% deposit from the borrower. There is a minimum £40,000 limit on these loans, with minimum rental income at 125%. The cost of the product is £1,999.
One official from Mortgage Next stated: “Despite all the downbeat talk about the housing market, the buy-to-let sector continues to show its resilience.”
She added: “A recent report issued by the Association of Residential Letting Agents confirms that 94% of property investors are confident that tenant demand will remain high and 40% expect to make further investments this year. This product will appeal not only to investors who are contemplating taking advantage of lower house prices to increase the size of their property portfolios, but also landlords who are considering remortgaging their existing buy-to-let deals.”
The expected lower house prices could see renewed interest in the buy to let market, as landlords try to increase their property portfolios by snapping up lower prices properties to rent out. Increased repossessions could also see landlords trying to knock down prices on property in order to raise their portfolios and increase profits.
Popularity: 28% [?]