As we move towards the end of the year, lenders have stepped up their battle for customers as they strive to gain a bigger market share.
Landlords are utilising this period by snapping up longer fixed rates, and products with reduced fees and charges, meaning they can make more money on their properties.
David Whittaker, the managing director of Mortgages for Business, has said that this healthy competition is great for landlords, as they now have access to a bigger pool of buy-to-let mortgages to choose from. This in turn leads to an increased number of properties available for rental, which in turn benefits those living in the private rented sector.
This time last year there were 458 mortgage products available, but this year the figure has risen to a massive 707 separate products. Five-year fixed rates account for 19% of the fixed rate markets, a 4% increase from the second quarter of the 2014. Whittaker also said that looking forward to 2015, the industry should consider the detail of how lenders are reacting to the requirement of deals that are fixed for longer.
As lenders respond to the increasing demand, it will no doubt be a busy time for mortgage professionals. Having undertaken and completed their CeMAP training, they will be the first port of call for landlords looking at purchasing additional properties for their portfolio. Their training means that are the most appropriate professionals who can assess each individual’s circumstances, recommending the best solution whilst complying with the necessary regulation.