Buy to let mortgages now cheaper than last year
It has been revealed that most buy to let fixed mortgages are now cheaper than a year ago. Some are down by as much as £29 per month on a typical mortgage of £150,000.
Landlords who have chosen a 5 year fixed deal have seen the biggest drop in costs. This is pleasing for most Landlords as 5 year deals have slowly been gaining popularity over the last few years.
Most Landlords choose to go for a mortgage deal with 50, 60 or 75 per cent of the property value. Savings were calculated as £8 per month at 50%, £29 at 60% and £21 at 75%.
Those Landlords who were looking at a 2 year fixed mortgage deal didn’t make as much of a saving. However, those on a mortgage deal at 65 per cent of the property value made an average saving of £11 per month.
Landlords encouraged to act now
Landlords are being encouraged to act now if they are looking to remortgage soon. Interest rates could change with Brexit so serious thought should be given, particularly from those looking at 5 year buy to let deals.
Nottingham buy to let market
In recent months, Nottingham has been rated as the best city for buy to let investments. This is reportedly down to the large student population where particular areas in NG1 and NG7 can produce very high gross yields. Rental values have also risen dramatically across the city in the last twelve months – Great news for Landlords.
Want to check on your buy to let mortgage deal?
Do you want to check how much you could potentially save on your buy to let mortgage deal? Perhaps you are coming up to the end of your term and need to compare the mortgage market? Talk to our mortgage broker today by calling 0115 924 3304 or by using the form below.
You can also see what we do for Landlords here.