Banks look to buy to let borrowers:
Banks are turning their attention to buy to let as the stricter home mortgage rules have hit their profits and ability to lend.
Tighter underwriting controls and affordability checks mean fewer home borrowers are qualifying for a loan.
To make up the slack, lenders are turning to buy to let investors.
The Bank of England says buy to let mortgage lending was up almost 50% in the third quarter of 2014, from £5.9 billion in Q2 to £8 billion.
Buy to let mortgages are not subject to the same underwriting rules as normal home loans, although the Bank of England and Financial Conduct Authority (FCA) have both warned they will not lenders to return to the pre-credit crunch Wild West frontier style of lending.
At the same time, the number of landlords is swelling as more homeowners move on without selling and switch their loans to a buy to let mortgage behind them.
This is not an exhaustive list of buy to let deals but a selection of some of the best offers available. Mortgages are subject to availability, which means lenders can change rates and terms at short notice. Inclusion in this table does not represent advice nor an endorsement of the product. Always take independent professional advice before proceeding with a mortgage.
|Lender||Starting rate||Reversion rate||Type||APR||LTV||Fees|
|Santander||2.45%||4.74%||Two year fix||4.60%||60%||£2,030||The Mortgage Works||2.59%||4.49%||Tracker||4.60%||60%||£561||Leeds Building Society||2.69%||5.99%||Two year fix||5.60%||60%||£1,059||Skipton Building Society||2.69%||5.19%||Two year fix||5.00%||60%||£648||Woolwich||2.69%||4.99%||Tracker||4.90%||60%||£1,249||Virigin Money||2.75%||4.99%||Two year fix||4.90%||70%||£2,094||Leeds Building Society||2.79%||5.99%||Variable||5.50%||60%||£259||Coventry Building Society||2.99%||4.74%||Two year fix||4.60%||60%||£769||Coventry Building Society||2.99%||2.79%||Variable||2.90%||60%||£769||Post Office||3.19%||4.70%||Three year fix||4.70%||60%||£995||Post Office||3.25%||4.70%||Three year fix||4.70%||75%||£995||Virigin Money||3.29%||4.99%||Two year fix||5.00%||75%||£2,094||Post Office||3.39%||4.70%||4.70%||4.70%||75%||£995||Post Office||3.49%||4.80%||4.80%||4.80%||75%||£0||Virgin Money||4.39%||4.99%||4.99%||5.10%||75%||£1,094||Aldermore||5.48%||5.73%||5.73%||6.00%||80%||£1,999|