Buy-to-Let Mortgages:

Mortgage lenders have been reducing their lending rates, providing some cheap mortgage deals to keep landlords in the market.

Over the last couple of years, landlords found themselves operation in a tougher landscape, having to adjust to stricter lending criteria, the phasing out of tax relief on mortgage interest payments over a four-year period to April 2020, and increasing letting regulations.

Last week the Halifax Building Society and Nationwide both cut their buy-to-let rates, on some deals by 0.45%. Barclays joined in, reducing some deals from 1.59% to 1.55% on a two-year fixed-rate mortgage with a 40% deposit, and a reduction from 1.88% five-year fix to 1.83% and a minimum 25% deposit.

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Broker only platform, Mortgage Brain, informed the Sunday Times that the average 40% deposit tracker mortgage is 3% cheaper than it was three months ago, and a 30% deposit tracker deal is 2% cheaper than in March.

This equates to, for example, a landlord taking out a £150,000 mortgage saving £234 per year with a 40% deposit, and £144 per year with a 30% deposit.

Aaron Strutt of broker Trinity Financial told the Sunday Times:

“The buy-to-let market has taken a real hit – there simply is not as much interest from landlords as lenders have been used to over the years,”

“Lenders have been targeting the buy-to-let re-mortgage market to drum up some business and, incredibly, they keep cutting rates to tempt landlords in.”

There’s currently a record number (1,405 first-time buy-to-let mortgages) of deals available to new landlords, indicating that the new rules designed to tighten lending don’t appear to have shaken lenders’ confidence with new landlords.


  1. ‘Good news for landlords’?? Is this fake news? It sounds suspicious to me because there’s been no ‘good news for landlords’ for years now, given the lovely shiny new Tories’ self-righteous campaign against the private rented sector.


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