Landlords have come under financial pressure due to increased stamp duty and tax relief reductions. All is not bad news as many lenders have returned to record low levels of interest on commercial buy to let mortgages. It is possible to get commercial mortgages for landlords at 3.43%, which is the same rate charged in
October 2017 before the Bank of England interest rate rise.
Many landlords are coming to the end of their fixed rate mortgage period and are looking to remortgage. This is good news for them as they can find mortgages at good interest rates.
Because of the extra costs incurred by landlords, there has been a decrease in mortgage applications. Many lenders have competing mortgage products. One way to attract new applications is to lower rates, which is probably why rates are low in March 2018. Many lenders are offering five-year fixed rate commercial mortgages at attractive interest rates.
Charlotte Nelson, a finance expert at the website moneyfacts.co.uk explained that:
“The market has changed significantly in the last two years and borrowers now have to work their way through a maze of extra regulation, as well as stricter lending requirements, yet property remains an attractive option for many, so it is more important than ever for landlords to seek financial advice to ensure they get the best possible option for them.”
A commercial mortgage broker can help buy to let investors source the best commercial mortgage deals.