Whilst much had been made of the difficulties in homeowners obtaining mortgages the banks appear to have recently had a change in heart and are offering improved ranges of buy to let mortgages for the buy to let investor. This is not only small time lenders but also members the big 4, with Barclays launching a number of fee-free buy-to-let re-mortgage products in October that included two and three year fixed rates.
So is the buy to let investor now the target customer for the mortgage departments of the banks?
With fewer people buying their own home and more renting, is this now reflected in mortgage lending? Barclays managing director of mortgages Andy Gray advised : “Since 2009 the fastest growing segment of the mortgage market has been buy-to-let and, inevitably, as this market matures more customers and intermediaries will benefit from thinking about switching rates.”
Mortgage Intelligence has recently expanded its panel of lenders with the appointment of Metro Bank. With this new new partnership, Metro Bank will offer a competitive range of not only residential mortgages but also buy to let and let to buy (up to 75% LTV) mortgage products to appointed representatives of Mortgage Intelligence, Mortgage Next and FYB. New lenders are also appearing with Fleet Mortgages, the new buy to let and specialist lender, announcing it had added Legal & General Mortgage Club to the list of distributors that will have access to its products from launch which is due in November.Our understanding is that the Fleet Mortgages product range will be tailored to experienced landlords and property investors. We understand it will also target a number of buy-to-let areas which it believes are currently underserved such as loans to limited companies and finance for Houses in Multiple Occupation.
Securing the right mortgage deal is important for the buy to let investor as the cost of lending can dramatically affect yields and returns on investment. More lenders are offering improved deals in the market. It is therefore important that the buy to let investor reviews all options and selects the right buy to let mortgage as this can enhance the attractiveness of the investment. Research is also important to ascertain what levels of finance the property can support so that the optimum results can be achieved from the buy to let property.