Long term fixed mortgages make a comeback with rates as low as 2.99pc fixed for six years – and seven year fixed deals for buy-to-let borrowers
Great News for landlords. This week a flurry of new mortgage deals from high lenders have cut the interest rates paid by buy-to-let borrowers, thanks to market expectations that a rate rise is some way off.
The biggest rate cut came from Leeds Building Societywhich trimmed its two-year fixed from 3.49% to 3.09pc for borrowers with a 40% deposit. Virgin Money, Accord and Santander followed suit this week with cuts to their fixed mortgage rates by around 0.1%. Buyers should be aware that Accord’s deal is part of a sale that ends by October.
Longer-term fixes are attractive to landlords wanting security as variable rates look set to rise.Skipton Building Society is offering a seven-year fix – the longest on the market. Those with 40 pc equity or deposits can borrow at 4.6 % until 2021. The fee, comparatively low for landlord loans, is £750. For those with less to put down – 25 % – the rate rises to 5 % and the fee to £1,750.
The rates on offer are appealing. Virgin Money, the new bank trying to win business from established high street rival lenders, has launched a six-year loan charging 2.99pc. To qualify borrowers need a minimum 30pc deposit and must pay an upfront fee of £995. The deal is available through Moneysupermarket.com.
Taken from an article by Richard Dyson – The Telegraph