According to a recent report, the number of mortgage products available for buy to let landlords has risen to a record high of almost 1,000 during the third quarter of 2015.
The Complex Buy to Let Index, produced by Mortgages for Businesses, a specialist broker, stated that UK landlords are now faced with a bigger choice of mortgages. The number of products indicates an increase of 11 per cent in comparison with the second quarter of the year. The index states that this increase is equivalent to a 35 per cent increase for buy to let mortgages on an annual basis.
According to the report, landlords get the lowest yield from ‘vanilla’ properties, which are regular houses and flats. Yield has fallen even further during the last quarter, by 0.8 per cent. Although it has dropped for Multi unit freehold blocks to 6.1 per cent, the yield is still considerably higher than the vanilla properties.
In the last few months, the number of buy to let products available on the market, has soared. The managing director for Mortgages for Businesses, David Whittaker, the interest in mortgage products suitable for a limited company has increased, as accountants advise clients to invest in buy to let. The study shows that there are still more re-mortgages than new purchases for the fourth quarter, which indicates that landlords are trying to secure a low rate deal. A CeMAP qualified advisor will be able to help landlords find a buy to let mortgage product that has a reasonable interest rate.