Buy-to-let mortgages are getting cheaper, with a drop in average rates of 0.33% in the second quarter of this year.
Mortgage broker TBMC said that the average fixed rate was 4.15%, down from 4.48% in the first quarter, while the average variable rate was 4.35%, down from 4.68%.
TBMC also said that there are now more buy-to-let deals at 75% loan to value and above, allowing landlords to take out bigger loans on the properties, although only one lender – Kent Reliance – offers 85% mortgages for buy-to-let borrowers.
The most popular area for residential investment properties during the second quarter was London, which accounted for 17% of TBMC’s business.
Other popular areas include Brighton (3%), Sheffield (3%) and Birmingham (2.5%), although none of these generated the highest yields.
Higher than average yields were reported in Leeds (7.66%), Nottingham (7.03%) and Southend-on-Sea (7.08%).
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