A decrease in buy-to-let mortgage rates hopes to stimulate the buy-to-let property market.
A surge in buy-to-let mortgage activity occurred in the first four months this year as landlords rushed to beat the April rise in stamp duty. After April property purchases by landlords slowed down. The uncertainty about Britain leaving the European Union also made landlords hesitant to invest in new properties.
Lenders have responded by cutting interest rates on buy-to-let mortgages. There is fierce competition between lenders, and this has influenced falling rates. Rates on some buy-to-let mortgages can be found between 2.09 per cent and 2.49 percent for a two year fixed rate. Some lenders have waived or reduced set up fees.
Now that Britain has voted to leave the European Union, it is too soon to predict how this will affect the property market. It depends on the impact that leaving will have on the general economic health of the UK.
Despite the rise in stamp duty and other financial challenges landlords face, the buy-to-let market is still strong. With buy-to-let mortgage rates falling, landlords continue to see buy-to-let properties as good investments.
First time landlords are subject to new European rules designed to strengthen consumer protection. This has made it more difficult for first time landlords to obtain mortgages. With Britain leaving the European Union this situation could change.
Often the best buy-to-let mortgage deals are found through commercial mortgage brokers who can shop around on their client’s behalf for the best deals.