As the countdown begins to the end of the stamp duty holiday on 30 September there are currently 41 buy-to-let (BTL) mortgages on the market at the record low rate of 1.5% or below, new research from Property Master has revealed.
The BTL mortgage broker’s findings revealed that one lender is offering a BTL mortgage at 1%, although this is for existing customers only.
Property Master suggested that with the housing market "racing to the finishing line of the stamp duty holiday”, and with rents rising in most regions across the UK, many landlords will be looking to increase their property portfolio.
“Lenders in the buy-to-let mortgage market are keen for a slice of this business and competition is hotting up in terms of pricing and the variety of products on offer,” Property Master chief executive, Angus Stewart, commented.
The broker’s research also showed that 10 out of the 41 BTL mortgage products offering 1.5% or below come without any arrangement fee. Those with arrangement fees charge between £995 and £1,999, and Property Master revealed that all of these offers are for fixed rates with the vast majority fixed over two years.
Stewart stated that landlords should still be aware of lenders specific product, lending and affordability criteria.
“Our advice to landlords is to always look beyond the headline grabbing price,” he added.
“Lenders are still keen to manage their risks and some of the better deals come with lower LTVs of 60 or 65%. Other lenders are limiting their offers to remortgages or product transfers, but this is not always the case. There are definitely some bargains to be had.”
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