According to data from Moneyfacts, over the last year, there has been a rise of 13% in the number of buy-to-let mortgages that cater for first-time buy-to-let landlords.
There is now a total of 1,268 first-time landlord mortgage deals. This compares to 929 products two years ago.Increased tax and extra stamp duty have put some landlords off, but this has not stopped new landlords entering the buy-to-let business.
Charlotte Nelson of Moneyfacts commented:
“Despite market uncertainty, providers are certainly not shying away from offering this risky group deals.”
Nelson believes that part of the reason that lenders want to attract new landlords is that many landlords with commercial mortgages are coming to the end of their mortgage period, and will soon have paid it off their mortgage. Mortgage lenders need to find new business and offering good deals to new landlords is one way to do this.
Interest rates on commercial mortgages are low and, despite increased costs, there are still good profits to be made from buy-to-let investing. Finding the right property in the right location is the key to a landlord’s success.
Many people approaching retirement find that their investments are creating low returns. Buy-to-let property is seen as a worthwhile investment to create retirement income. Rental yields can be higher than the interest paid from high street bank savings accounts.
A commercial mortgage broker can find the best buy-to-let mortgages and will also provide help and advice for landlords entering the sector.
