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Lenders reduce buy-to-let mortgage rates

The interest rates on a number of mortgage products available for buy-to-let customers have been cut by up to 0.75% by some lenders.

The new rates on offer to those who are re-mortgaging or buying a property for buy-to-let, could make it possible for borrowers to save money on their monthly repayments. Experts point out that saving money on the monthly mortgage payments will result in being able to increase rental income.

The Nationwide is the latest lender to cut interest rates on buy-to-let, with The Mortgage Works reducing rates on its products. The Mortgage Works is the buy-to-let branch for Nationwide, the largest building society in the country.

The interest rates across the lender’s range of deals have all been reduced, including those on the two year, three year and five year deals. These are some of the lowest deals available to landlords at present.

According to experts in the industry, some of the cheapest deals will become available soon. The same principle applies, however, with a large deposit required and possibly an application fee.

Although mortgage rates on buy-to-let have reduced, lenders are now asking landlords to prove that they can cover rent up to 145%, rather than the previous figure of 125%. The Mortgage Works is committed to helping landlords manage costs as the tax relief is cut, by reducing the interest rates of its products.

Mortgage advisers are required to study for their CeMAP exam, to ensure that they have sufficient knowledge of the mortgage process.

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