Landlords continue to benefit from competitive rates

Across the UK, Landlords have been making the most of the record low rates, which have recently tripled as lenders try to entice those potential borrowers who now have access to their pension savings.

The last 12 months have seen fixed rates continuously falling, with the average for five years dropping to a staggering 4.25% from 4.65%.

Website Moneyfacts.co.uk has revealed that the total number of five-year fixed rates at under 5% is at an all-time high. A year ago, there were 55 of this variety, and this number has now risen to 143.

One finance expert with Moneyfacts.co.uk, Charlotte Nelson, commented:

“Buy-to-let mortgages are experiencing a renaissance, becoming not only more widely available but cheaper, too. It is little wonder that the newly emancipated pensioners are genuinely considering buy-to-let as a retirement option.”

Her words follow the recent change in pension rulings which that people can access their savings earlier. In fact, separate research conducted revealed that a greater percentage of pensioners would opt to invest in a buy-to-let property, as opposed to taking an annuity from their pension.

The Council of Mortgage Lenders also revealed an increase of over 10% in the volume of buy-to-let mortgages in February 2014, against the same point of 2013.

As a mortgage advisor, you will have taken on the commitment of completing your CeMAP training, and will have obtained a pass in the final exam. Working in line with regulation and your employer’s processes and procedures, you can assess a customer’s affordability and advise them on their most suitable mortgage solution.



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