The recent changes to the buy-to-let market – and the best mortgage deals available
Every Friday we get an overview of the mortgage market with the help of industry experts. This week finance expert Rachel Springall from Moneyfactscompare.co.uk outlines what’s been happening in the buy-to-let market…
This week, Santander reduced one of its two-year fixed buy-to-let mortgages by 0.14% and NatWest Intermediary Solutions made selected reductions on fixed and “green” fixed mortgages by up to 0.20%.
Week on week, there have been minor moves to the overall average fixed buy-to-let rates, with the two and five-year rates rising by 0.01% to 5.55% and 5.57% respectively.
Overall, it has been a relatively quiet week for rate tweaks in the buy-to-let sector, but landlords have come up in the news.
The Conservatives launched their manifesto this week ahead of the general election vote, and pledged to eliminate capital gains tax for landlords selling their homes to tenants.
This week, the lowest two-year fix for buy-to-let customers at 75% loan-to-value comes from Metro Bank, priced at 4.19%.
If you are looking to borrow more, then Suffolk Building Society has the lowest two-year fix for buy-to-let customers at 80% loan-to-value priced at 4.79% for second-time buyers and remortgage customers.
A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. If you are looking to borrow at 75% loan-to-value, HSBC has a deal for remortgage customers priced at 4.33%.
If you are looking to borrow more, then Virgin Money has the lowest five-year fixed buy-to-let deal at 80% loan-to-value priced at 5.29% for second-time buyers and remortgage customers.
Best Buy alternatives
The lowest buy-to-let rates may carry both a flat product fee and an arrangement fee which is based on a percentage of the mortgage advance, so a Best Buy package may be more suitable if you are looking to save on the upfront cost of any deal. You might also want a deal to cover a valuation or legal fees. A Best Buy buy-to-let mortgage could be the most cost-effective choice in this instance, but it’s worth seeking advice before entering any arrangement.
This week, the top package on a two-year fixed buy-to-let deal at 75% loan-to-value comes from HSBC, priced at 4.69%. If you want a loan with a lower upfront fee, then HSBC also has a Best Buy deal priced at 5.08% at 75% loan-to-value.
A five-year fixed buy-to-let mortgage may be more appealing for you to guarantee your monthly repayments for longer. If you looking to borrow at 75% loan-to-value, HSBC has a Best Buy deal priced at 4.39%. If you want a loan with a lower upfront fee, then TSB has a Best Buy deal priced at 4.59% at 75% loan-to-value.