Landlords take pick from record number of mortgage deals
A record number of 817 buy-to-let mortgage products are now on offer to UK landlords, with the cheapest rates and lowest fees reserved for low loan to value ratios.
The latest Buy to Let Mortgage Costs Indexreveals the number of buy-to-let mortgages on offer from lenders is up 16% quarter on quarter.
The research suggests that fixed rate mortgages are proving to be better value than their respective tracker counterparts, particularly for lower loan to value borrowers. Low LTV mortgages now outperform their tracker equivalents at two, three and five-year periods.
This reflects the increasing popularity of longer term mortgages, with the proportion of landlords choosing five year mortgages rising from 15% in the second quarter of 2014 to 18% in the fourth quarter.
The data also shows that the value of the buy-to-let market grew by almost a quarter during 2014, and with the pensions annuity reforms set to kick in in April this year there could be a further surge in buy-to-let activity over the next 12 months.
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