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The recent changes to the buy-to-let market – and the best mortgage deals available
Every Friday we have an overview of the mortgage market with help from industry experts. This week, finance expert Rachel Springall from Moneyfactscompare.co.uk describes what’s happening in the buy-to-let market…
This week, Santander reduced one of its two-year buy-to-let fixed mortgages by 0.14% and NatWest Intermediary Solutions made selected reductions on fixed and “green” fixed mortgages by up to 0.20%.
Week after week, there were small changes to the overall average buy-to-let fixed rates, with the two-year and five-year rates rising by 0.01% to 5.55% and 5.57% respectively.
Overall, it was a relatively quiet week for rate adjustments in the buy-to-let sector, but landlords were in the news.
The Conservatives released their manifesto this week, ahead of the general election vote, and pledged to scrap capital gains tax for homeowners selling their homes to tenants.
This week, the lowest two-year fix for buy-to-let customers at 75% loan value comes from Metro Bank, priced at 4.19%.
If you’re looking to borrow more, Suffolk Building Society has the lowest two-year fix for buy-to-let customers, at 80% loan-to-value and priced at 4.79% for second-time buyers and remortgage customers .
A five-year fixed buy-to-let mortgage may be more attractive for you to lock in your monthly payments for longer. If you’re looking to borrow at 75% of the loan value, HSBC has a deal for remortgage customers priced at 4.33%.
If you’re looking to borrow more, Virgin Money has the lowest five-year fixed buy-to-let agreement at 80% loan-to-value and priced at 5.29% for second-time buyers and remortgage customers.
Best purchasing alternatives
The lower buy-to-let rates can carry a fixed product fee and a settlement fee based on a percentage of the mortgage advance, so a Best Buy package may be more suitable if you want to save on the upfront cost of any arrangement. You may also want a settlement to cover an appraisal or legal fees. A buy-to-let mortgage from Best Buy may be the most cost-effective choice in this case, but it’s worth seeking advice before entering into any agreement.
This week, the lead package for a fixed two-year buy-to-let deal at 75% loan-to-value comes from HSBC, priced at 4.69%. If you want a loan with a lower initial rate, HSBC also has a Best Buy deal priced at 5.08% and 75% of the loan amount.
A five-year fixed buy-to-let mortgage may be more attractive for you to lock in your monthly payments for longer. If you want 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 initial rate, TSB has a Best Buy deal priced at 4.59% and 75% of the loan amount.