Northern Rock announced buy to let mortgage range

April 24, 2010 by Brendan

News

Northern Rock’s Everyday mortgage range has now been extended to include a new fixed-rate set of mortgages for the buy to let market.

The new buy to let range includes a two year fixed deal available for those with 60 percent loan to value or more offers an interest rate of 5.49 percent, or for a 70 percent loan to value the interest rate increases to 6.09 percent.

The buy to let range also includes two three year fixed rate deals, again for 60 percent LTV and 70 percent LTV and prices at 5.59 percent and 6.19 percent interest rates respectively.

Each of the four products comes with a 2.5 percent product fee.

Throughout the recession, buy to let mortgages have suffered more than most as most mortgage lenders have tightened criteria significantly. Those landlords who wished to extend their portfolio and take advantage of the lower property prices have had their hands tied in many cases.

According to recent reports from the Council of Mortgage Lenders (CML), mortgage borrowing appears to be easier as the volume of house purchase advances made in February increased by 12 percent compared to January’s figures. The increase was 49 percent higher in volume and 67 percent higher in value compared to the same figures just one year earlier.

Yet when you look at buy to let mortgage deals separately, many landlords and prospective investors continue to find the rates and criteria troublesome and not conducive to picking up the many property bargains around at the moment.