Buy to Let Mortgage Products Growing for Landlords and Rates Being Cut
Buy to let business has been doing very well with the demand from renters soaring. Landlords are seeking more properties to add to their portfolio and lenders are happy to have borrowers that seem to be at less risk to default. That is why lenders are adding more buy to let remortgage and mortgage products to their offerings. Remortgages are being used much more by landlords to add more properties to their portfolios while new purchase mortgages are growing as more people come into the buy to let market.
Not only are there more buy to let mortgage products being offered by landlords but they are also cutting their interest rate offerings on their products. On Friday, Platform, the mortgage arm of the Co-operative Bank, announced they would be cutting their buy to let mortgage interest rates on their 2 year fixed deals by 0.2 per cent.
Commenting on the cut in their buy to let interest rates, Nick Allen of Platform, said "Buy to let lending continues to remain buoyant with demand for rental properties remaining high."
The buy to let market is flourishing due to the demand from renters for adequate properties. Without the ability for many households and young adults on their own to purchase due to high deposit requirements the need for rental property has risen. The increase in demand has made rental fees rise above what would be an average mortgage payment in many cases for a family. However, without the ability to gain mortgage approval the ability to pay for a property versus a rental is out of reach. This trend is expected to continue for many years and the buy to let market will benefit.