Buy-to-let mortgages become cheaper in the UK
One of the first signs positive signs in the field of buy-to-let mortgages appeared today, when some of the largest building societies and lending institutions announced that they would lower their mortgage rates for landlords and investors. In some cases, lending rates fell by as much as 0.5 percent, with the Nationwide Building Society reducing both their fixed lending rate, as well as their tracker mortgages. Once this development made headlines in the buy-to-let sector, the Mortgage Works followed the lead and announced that their new two year fixed rate would fall to 5.29 percent APR, or 4.39 percent in the case of eighteen month agreements at a 60 percent loan to value (LTV).
Lower rates represent the first positive news when it comes to the buy-to-let loans market in a long time. Lending conditions have remained tight for more than a year and the number of available mortgage products has decreased noticeably over the past 24 months. Many Britons with a stake in the buy-to-let sector were also concerned by the fact that mortgage lending rates remained relatively high, even as the Bank of England decreased its base rate to record lows and as interest levels for regular home mortgages declined.
Yet the good news surrounding buy-to-let loans could not have come at a better time. For the first time in nearly a year, property prices are once again rising; especially in the case of flats located in major city centres. The housing and rental sectors may finally rebound, as lending institutions offer more competitive rates and as real estate values show signs of recovery.