Buy-To-Let Mortgage Costs Reach Historic Low

Thursday, February 20, 2014
Landlords Happy As More Lower Rate Buy-To-Let Mortgages Introduced

Landlords Happy As More Lower Rate Buy-To-Let Mortgages Introduced

Landlords Happy As More Lower Rate Buy-To-Let Mortgages Introduced

UK private renal sector (PRS) landlords have had a major boost after the announcement that the overall costs of acquiring a buy-to-let mortgage have reached a historically low level. 

The current historic low for overall buy-to-let mortgage costs for landlords and property investors are being attributed to increased demand for rental properties by desperate tenants in the UK, which has amplified the advantages of the UK buy-to-let market exponentially. 

The result of this unprecedented demand has seen a number of lower rate mortgage products coming to market that are actually better than the offerings available prior to the start of the recession back in 2007/8.It is thought that the competitive offerings are a pragmatic and reactionary move from the UK’s mortgage lenders who are looking to attract new landlord and property investor clients in the UK’s rapidly expanding private rented sector.

It has been estimated that over 10 Million tenant’s currently rent private sector properties in the UK which is over twice the number of tenants observed in privately owned properties at the turn of the new millennium. 

UK mortgage lenders are beginning to accept smaller buy-to-let mortgage profit margins in an effort to attract thousands of new customers amid the expansion of the UK private rental sector, hoping to make more money from the sheer bulk of their products sold to landlords and property investors. 

David Hollingworth of London & Country, one of the UK’s most prominent brokers have identified there has never been a better time for an aspiring landlords to enter into the rental property market, stating: “The market for buy-to-let lending is extremely competitive and rates are the most competitive they have ever been. Bank rates are still at a record low at 0.5% and UK mortgage lenders want to attract a bulk of new business, so they’re all pushing their rates down, even for borrowers with less equity in their rental property portfolios.”

This was written by Mike Clarke. Posted on at 11:45 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.