The buy-to-let mortgage market has seen resurgent activity, with more products available and increased competition amongst lenders leading to innovation on features. The highlights are:
- Fresh availability of 5-year and 10-year fixes, at rates which will probably not be bettered in the future;
- "Let-to-buy" products allow a borrower to use equity in their existing home as a deposit on a buy-to-let mortgage;
- Adult children living with their parents can obtain a buy-to-let mortgage to enable them to invest in a property whilst remaining at home
- You can obtain mortgages where the borrower would be aged 80 years at the expiration of the term;
- You can gift equity in a property to your children and the gifted portion of the equity will be used as the deposit on the buy-to-let mortgages.
The themes are that mortgage transaction volumes have doubled since the low point of 2013, with over 60% of this (10,000 loans each month) being re-mortgage business. The market share of brokers and intermediaries has increased dramatically – the expectation is that 70% of buy-to-let mortgages will go through these channels rather than direct to high street lenders. At the same time the number of active brokers has fallen from 30,000 (in 2013) to around 14,000 today.
Property values in all regions of the UK have risen, which means that almost all landlords will be in a position to re-mortgage no matter where their portfolio is located. The European Mortgage Credit Directive ("MCD") is being finalised and could be disruptive to the buy-to-let market, making some types of lending more difficult. No-one can predict the timing and pace of interest rate rises but the direction is certain. Taken together, these factors mean that re-mortgaging and fixing rates over a longer term may be in the best interests of many landlords.
Martin & Co recommends London & Country Mortgages, the UK’s leading Independent fee-free mortgage broker. When you speak to London & Country, you can rest assured that you are in safe hands. L & C have won more awards for their services than any other mortgage broker in the industry.
Applying for a mortgage can be an expensive business and that’s why all of L & C’s mortgage advice is fee-free. Make the whole process a lot easier by calling London & Country today on 0800 923 2045
and L & C’s qualified advisers will be happy to discuss your options with you.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Please note: Although L & C our authorised and regulated by the Financial Conduct Authority (FCA), the FCA does not regulate most buy to Let mortgages.