Lowest rates ever for buy-to-let mortgages

October 29, 2015 by Brendan

Borrowers

A new low rate of interest has been announced for the latest offering from Accord Mortgages, the Yorkshire Building Society’s broker arm. The product is a fixed rate buy-to-let mortgage, charging 1.84 per cent for two years.

The new deal is available to landlords who are buying for the first time, or to those who are re-mortgaging. To qualify for the deal, a 40 per cent deposit is required. A landlord with this particular deal on an interest only mortgage would pay just £230 monthly over the next two years. However, experts advise prospective landlords to watch out for the fees, as this product has a fee of £2,495 together with application fees of £130. NatWest is offering a low deal for buy-to-let at 2.02 per cent, which has lower fees, making it a cheaper alternative.

According to Moneyfacts, the lowest interest rate for buy-to-let in 2014 had fallen to 2.49 per cent. Rachel Springall, from Moneyfacts, states that prospective landlords are faced with extremely low interest rates and a range of deals, combined with high rents, making it a good time to invest. However, changes to the amount of allowances and tax relief which can be claimed by landlords is a concern for many, who will be pleased to discover the new low interest rates.

Prior to signing up for any mortgage deal, consult a mortgage adviser who has invested in appropriate CeMAP training so that they have the required knowledge to help all prospective buyers make the right choice.