by Mark Johnston
Buy to Let Lenders Launch New Mortgage Deals.
Analysis has revealed that the private rented sector has grown by 72 per cent since 2001 and there are now over nine million people in England renting privately.
Buy to let seems to be a popular option for those who would rather grow their wealth through brick and mortar than shares.
Research shows that buy to let applications have soared by around 26 per cent in the past year.
It seems then that landlords are to receive yet another boost as a number of buy to let mortgage providers have launched new deals just recently.
These new launches have come as the number of buy to let loans being taken out is at its highest level in four years.
Around £1 in every £7 lent on mortgages last year went to landlords, which is a total of £16.4 billion.
There maybe a number of reasons for this. Falling house prices in many parts of the country have prompted existing landlords to snap up more properties, while increasing buy to let mortgage competition and rising rents are also encouraging people to enter the market.
Rightmove, the property search website said its recent research has shown that rents are delivering gross yields of around 5.9 per cent.
The Mortgage Works (TMW), a subsidiary of Nationwide Building Society, has launched its lowest ever fixed rate at 2.49 per cent from today and is available to both first time and experienced landlords.
This deal is for those borrowers with a 60 per cent loan to value (LTV) and carries a 2.5 per cent fee. This would mean a £6,250 fee on a £250,000 purchase.
Henry Jordan, managing director of The Mortgage Works, said: “The Mortgage Works is now offering its lowest ever buy to let fixed rate. These changes further demonstrate our steadfast commitment to the buy to let sector, with landlords being able to secure market leading headline rates across all of our loan to value tiers up to 80 per cent.”
Landlord Centre, the online buy to let mortgage specialist, has also launched two new exclusive buy to let mortgages.
The first, from Melton Mowbray Building Society, is a 2.55 per cent fixed rate until September 2015 with a £2,495 completion fee.
The second is Hinckley & Rugby Building Society with a 2.55 per cent two year discount mortgage with a two per cent completion fee. Both are available up to 60 per cent loan to value (LTV).
Andy Young, chief executive at Landlord Centre, said: “These products are a great option for landlord clients with larger deposits or existing equity in their buy to let properties.”
Mortgage Trust, the specialist buy to let lender and sister lender of Paragon Mortgages , is also now offering a 2.99 per cent two year fixed rate at 75 per cent loan to value (LTV), with a 3 per cent fee, and a 4.15 per cent at the same loan to value ( LTV) with free valuation but with a flat fee of £950.
So in conclusion, it therefore appears that the buy to let mortgage market is continuing to perform well in 2013.
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