The last 12 months have been a roller coaster ride for buy to let mortgages.
This time last year, at the time of the Liz Truss budget, there were only about 1000 buy to let products available.
But now, today, there’s around 2,500 buy to let mortgage products.
The bad news, of course, is that buy to let mortgages are much more expensive than they used to be.
A typical 2 year fixed will cost about 6.4% today, and a 5 year fixed will be about 6.32%.
That’s about double from 18 months ago.
But there is some good news.
Some lenders are reducing rates, a bit.
Not much, but a bit, which is a sign that things could be improving.
For example, The Mortgage Works have just reduced rates across their buy to let Switcher range by up to 0.25%, although this is for products with LTVs of 65% or less.
Interestingly lenders seem (to me) to be trying to steer borrowers to a 5 year fixed, and there’s been quite a big increase in the number of 5 year fixed rate buy to let mortgage products available.
This isn’t financial advice, but I would have thought that there’s a good chance Bank of England base rate and mortgage rates will drop over the next 5 years.
So, does a borrower want to tie themselves in for 5 years now?
Who knows, I could be wrong, but it is a risk, even a gamble.
It’s always important to take professional advice, but I think in this market it’s even more important.
If you need a buy to let mortgage for purchase or refinance, or if you want to discuss any other type of property finance, I’ll be more than happy to put you in touch with my very good mortgage broker.
Please email me peter@thepropertyteacher.co.uk
Here’s to Successful Property Investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://www.ThePropertyTeacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to:
https://www.ThePropertyTeacher.co.uk/the-successful-property-investors-strategy-workshop