Mortgage lenders are scrambling to offer the best deals in a bid to attract new customers as the private rented sector continues its remarkable growth. According to mortgage specialists Mortgages for Business, 57% of landlords expect to expand their portfolios in 2014.
Some lenders have slashed rates to as low as 2.49%, although, these very low offers require a large deposit of around 40%. With one in six people in the UK now living in privately rented accommodation, the demand for landlords is at an all-time high, driving down borrowing rates.
David Hollingworth, a mortgage broker at London & Country, said, “The market for buy-to-let lending is extremely competitive and rates are the most competitive they have ever been. Bank Rate is still at a record low at 0.5pc and lenders want to attract new business, so they’re all pushing their rates down, even for borrowers with less equity in their portfolio.”
Of course, it can’t go on this way indefinitely. Many economists expect interest rates to rise sooner than expected, which will calm the buy-to-let frenzy. But for now, landlords are showing they know a good deal when they see it.
Back to news