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TODAY'S OTHER NEWS

 Big rise in buy to let mortgage choices as market recovers

There’s been a significant increase in the mortgage choice available to landlords as the buy to let market gets closer to normal trading again after the lockdown.

Independent mortgage monitor Moneyfacts says the choice in products has increased, and some higher loan-to-value average rates have reduced. 

Overall, there are 280 more buy to let products available now than there were at the start of May, just five weeks ago. 

The product choice at 75 per cent loan to value has increased by 46 two-year fixed rate deals and 54 more products are available in the five-year fixed rate bracket. 

The picture at 80 per cent LTV is similar, with this traditionally smaller sector increasing by 26 two-year fixed rate products and 20 more options available for those seeking a five-year fixed rate over the month.

“The Bank of England base rate currently remains at its lowest ever level of 0.10 per cent, resulting in further despair for savers. However, those looking to invest their money in property now that the mortgage market has reopened may feel now is a good time to explore their options, particularly with rates becoming more competitive and product choice beginning to return this month” explains Moneyfacts’ finance expert, Eleanor Williams.

“This positive growth in choice is reflected in the higher LTV tiers, with deals for landlords with just a 25 or 20 per cent deposit or equity keeping pace across two and five-year fixed rate options” she continues. 

“This is encouraging considering that early in the Covid-19 crisis, providers were focused on supporting existing customers and restrictions meant that physical valuations were not feasible, seeing many lenders reduce their offerings to lower risk, lower loan to value products. These developments left those with less equity or deposit un-catered for.

“As we begin to see indications that the buy-to-let market may be starting to recover, the full economic impact of the current crisis is still not yet clear for tenants and landlords alike. However, those who are in a position to consider capitalising on possible falls in house prices to expand their property portfolios or indeed those looking to switch their current deal, may wish to move quickly.”

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