Lower Buy To Let Mortgage Rates
Increasing rent levels and movement in house prices have meant that demand for buy-to-let loans is now at its highest point for four years, and with news of lower buy-to-let rates being issued across the market, this trend is only set to improve.
Just this week Nationwide subsidiary, The Mortgage Works, has launched the cheapest buy-to-let mortgage rate they have ever offered. Set at just 2.49% for the next two years with a 2.5% set up fee, this provides the opportunity for new landlords and established property investors to expand their portfolio and take advantage of a fantastic deal. However, The Mortgage Works are not alone. This offer is just one percentage point below the deal now available from Santander who are also pushing their 2.5% fixed rate buy-to-let mortgage for anyone with a 60% LTV. For those that want a fixed fee rather than assessing it on the value of the loan, The Mortgage Works have gone even further offering two highly competitive fixed rate mortgages for landlords with a fixed £995 charge.
Positive Signals for Future Growth
Seeing such offers in the marketplace is a clear indication from the financial institutions of their confidence in the opportunities within the buy-to-let market over the coming years. Last year over 14% of all mortgages offered were issued within the buy-to-let market, with some speculating that cheap deals such as these will ensure this proportion climbs even further in the future.
Over the past decade, growth in the private rental market has meant that more than 9 million people now privately rent their homes, 72% more than in 2001. Leading estate agent LSL has predicted that annual return on property over the next twelve months could be as much as 6.2% across the country as a whole. And with more than half of all tenants now being over 35 years old, a third of all rentals properties now being family homes, and rental income growth reaching 7.2% in London this year, it is possible to see why so many people are now looking towards property investment to provide for their future.