Buy-to-let investors are continuing to benefit from lower mortgage rates, as recent data demonstrates that interest rates for buy-to-let mortgages have fallen by up to 8% during the last six months.
According to data released by Mortgage Brain, a five-year fixed loan for buy-to-let, with a Loan To Value of 70%, now costs 8% less than it did in March this year. Using the latest figure of 2.8%, there is a potential for savings of £738 on a mortgage of £150,000. Costs for fixed rate deals for buy-to-let mortgages with a LTV of 60% have also reduced.
The chief executive of Mortgage Brain, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Lofthouse, stated that it would be fascinating to see what will happen to costs and mortgage rates during the coming months, especially as the Bank of England has predicted further cuts to the interest rates. He added:
“There is no doubt though that on the whole borrowers and potential buy-to-let investors are in a great position to take advantage of the low rates and cost reductions that we are seeing.”
A mortgage adviser from Tussle, Ryan Tuff, added that lenders were continuing to refresh their products, with a number being improved recently by Halifax, Accord and BM Solutions. He also said that although some may view the current market as unpredictable, it hasn’t stopped lenders offering low rate products over the next five or even 10 years, indicating that they don’t predict any drastic change to interest rates in the future.
However, anyone considering tying themselves into a long term fixed rate deal may benefit from mortgage advice from a professional who is CeMAP qualified.