Buy to Let Mortgages Become More Affordable

As demand from tenants increases, UK buy to let mortgages become more affordable because banks slash interest rates and arrangement fees.

A research by independent agency Defaqto, results of which were released earlier this week, suggests that interest rates on buy to let mortgages have fallen in the past 12 months.

Another factor that led to the decrease in the cost of buy to let mortgages, was a reduction in arrangement fees.

This caused a signficant boost on the buy to let market, as new lenders started to enter it and existing landlords - to expand their property portfolios. “Many borrowers will want to use the expertise of an adviser to help choose the best buy-to-let mortgage for their circumstances,” said David Black of Defaqto.

Even though interest rates on buy to let loans are low, they are still higher than rates on residential mortgages. While btl loans are available at 4-6%, residential mortgages can be taken at 3-5%.

The detailed report by Defaqto is available on the company’s official website in the Press-releases section.