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TODAY'S OTHER NEWS

Good news - record number of mortgage deals for new BTL investors

The independent mortgage market monitor Moneyfacts says there is now a record number of mortgage deals for those entering the buy to let investment market - despite the rental sector being besieged by regulation and tax changes. 

Moneyfacts says there has been a rise of no fewer than 339 new BTL products in just two years. 

“Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36 per cent over the same period” says spokeswoman Charlotte Nelson. 

“Despite market uncertainty, providers are certainly not shying away from offering this risky group deals. Providers know all too well that many borrowers on their mortgage books will be coming to the end of their term and reassessing their deal, so they need to attract new business. As such, they’re enhancing their ranges and offering these extra deals to entice those customers who are new to the market, thereby breathing new life into their mortgage book.

Nelson says that while multiple regulations and tax changes may have put some borrowers off becoming a landlord, it seems many are undeterred. One lender, Accord, has seen the number of applications from aspiring landlords double over the past 12 months.

“This is little surprise when many consider bricks and mortar as a safe bet. With savings rates low, many are looking to get better returns elsewhere. Also, while rents are high and mortgage rates for first-time landlords are still falling, the potential for a decent return is high” according to Nelson.

“Potential investors should not get ahead of themselves however. Since September 2017, they face checks and questions about their finances and will need to do their homework to ensure they get the best deal.”

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