Landlords in the UK are now able to choose from a record number of buy to let financial products which have risen in number by 16% in the last three months, a survey has revealed.
The findings come from Mortgages for Business who say there are now 817 products and that lower LTV fixed rate offers are cheaper than tracker products.
In addition, landlords will also find that mortgage charges have continued to fall for mortgages with lower LTVs while landlords are paying extra fees for products with a higher LTV.
Increasing demand for BTL products
The managing director of Mortgages for Business, David Whittaker, said: “This pick-up reflects the increase in demand at the wider importance of the UK's rental industry.
“2014 was the second consecutive year that the buy to let market value by nearly a quarter and we anticipate more growth this year, though at a slower rate.”
The firm's research also suggests that landlords looking for BTL mortgages should opt for fixed rate products since they are offering more value than trackers.
Landlords urged to fix their mortgages
However, only one in 100 landlords choose a one year conditional mortgage term and short-term mortgages are declining in popularity; just over half, 52%, chose a two-year BTL mortgage deal instead.
Essentially, BTL mortgage lenders are offering impressive terms for safe borrowers but the prospect of bank interest rates rising later this year may well cause problems for some borrowers, says the firm.
Mr Whitaker said: “Our advice is for borrowers to take advantage of fixed rate deals which are on offer this year.”
Landlords are confident for prospects this year
Meanwhile, a new survey has revealed that the UK's buy to let landlords are increasingly confident that their business will prosper over the coming months despite a General Election being held in May.
The findings come from BM solutions, a BTL mortgage lender, who say that two thirds of landlords believe that their business will do well and many are hoping to let more properties.
The firm also found that one in five landlords had bought more property to let in the final three months of 2014 and around a third of all landlords are planning to buy more properties this year too.
The head of BM Solutions, Phil Rickards, said: “Landlords have faith in their portfolios and in the demand from tenants with voids and rent arrears at historic lows.
“This means we are seeing a large proportion of landlords expecting to grow their property portfolio this year.”
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