2019 was an interesting year for the Buy to Let market as more landlords chose to use a limited company structure to purchase their
properties, with this trend likely to continue into 2020. Research from Precise Mortgages found that 62 per cent of landlords with 10 properties
or fewer intend to purchase their next buy to let property within a limited company structure.
There is also some good news for current landlords and for those who are looking to invest in property.
Mortgage costs in the Buy to Let market continued to fall in the last three months of 2019, according to the latest figures released from Mortgage Brain’s quarterly product data analysis – welcome news for landlords across the country!
The greatest savings can be made on longer term fixed rate Buy to Let mortgages. In December a 70% loan to value Buy to Let mortgage that is
fixed for five years was 4.4% lower than the 12 months previous. This would provide a substantial yearly saving of £360, on a £150,000 mortgage.
The data also showed that at the end of 2019 the cost of a 60% loan to value Buy to Let mortgage that is fixed for two years was 1.7% lower than it
was the previous year. This represents an average annual saving of £126 on a £150,000 mortgage. But why are Buy to Let mortgages getting
cheaper?
Put simply, it’s a result of increased competition.
The Buy to Let market is very competitive. Lenders keen to attract new business are prepared to offer lower rates, which for you as the consumer is great news!
With increased choice for your Buy to Let needs comes greater confusion, that’s why seeking professional advice can be invaluable. Your adviser
will be able to find you the Buy to Let mortgage that suits you and your personal circumstances.
If you want to take advantage of low Buy to Let mortgage rates, or discuss your borrowing options, contact your adviser today!
Please be aware that some forms of Buy-to-Let mortgages are not regulated by the Financial Conduct Authority (FCA).