Surge In New Buy-To-Let Mortgage Products Confirms Rental Property Revolution
Surge In New Buy-To-Let Mortgage Products Confirms
Rental Property Revolution
A number of market leading lenders have introduced improved Buy-To-Let mortgage products to meet the growing demand for portfolio expansion by UK landlords.
The surge in the number of new mortgage products coming to market confirms that the UK buy-to-let industry is growing across the whole of the UK and there are even more BTL products still awaiting launch dates from lenders.
Paragon Mortgages has introduced a new Buy-To-Let mortgage product for single unit properties, Houses of Multiple Occupation (HMO’s) and multi-unit blocks; the rate is fixed at an initial 5.49% for a maximum Loan-To-Value (LTV) of 75% with a 2% product fee.
The Post Office, (and its financial services partner the Bank of Ireland) have also entered the Buy-To-Let mortgage market, launching a range of buy-to-let mortgages at 60% and 75% LTV – some of their BTL mortgage products don’t even have an arrangement fee and include free valuation. This is fantastic news for portfolio landlords and property investors who may have had limited access to Buy-To-Let mortgages previously, the new products being launched are enticing even more landlords to expand their rental property holdings and encouraging more would be property investors to take the plunge and start their property journey.
With UK property prices already beginning to rise, there really isn’t a better time to invest in property, the added availability of improved BTL mortgage products and continued strong demand for rental properties by tenants means that landlords can expand rental property portfolios easier and they can expect decent rental returns for longer periods due to the lack of available properties to choose from on the market.
NatWest conducted a survey of over 500 mortgage brokers and intermediaries asking about forecasts for the UK Buy-To-Let sector and the results were encouraging for the UK BTL sector:
- 67% reported an increase in Buy-To-Let mortgage business in the last quarter of 2013, with just 4% reporting a drop in business.
- 74% of broker respondents forecasted a huge increase in business during 2014 than they had observed in 2013
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