In the last few weeks of the coronavirus pandemic it has been very difficult to find any financial lender that will provide a buy to let mortgage let alone a good deal. But now that the UK property market is starting to open up there is good news for buy to let investors as far as mortgages are concerned.
A few weeks ago it was almost impossible to find a mortgage deal for a buy to let property. If you could find one then there were usually higher rates to contend with and much lower loan to value percentages as the financial industry was protecting itself from all of the uncertainty surrounding COVID-19 in the UK.
Signs of Recovery in the UK Buy to Let Market
With the recent signs of recovery in the buy to let market the financial deals available to investors are steadily reverting back to those which were available before the advent of the coronavirus pandemic. Investors certainly have more choice right now.
There has been a reduction of interest rates on a number of higher LTV mortgage products. Brand new data from Moneyfacts reveals a more risk tolerant point of view from the lenders that provide buy to let mortgages.
As a result of this, buy to let investors are being urged to take advantage of these changes in the mortgage market. Whether you are interested in purchasing a new buy to let property or want to recalculate the financing for your portfolio, it is a good time to take a look at the mortgage offers that are currently available.
Many New Options from Lenders
The numbers of buy to let mortgage products have risen significantly by 280 between May and June 2020. This means that there are now 1,735 mortgage products and options available to landlords which are up from 1,455.
One of the reasons for this increase is likely to be that lenders are changing their focus to include new borrowers with their products along with existing borrowers. Another factor will certainly be the new advice released by the UK government on physical valuations.
If you are a buy to let investor with a long term view (something that we definitely recommend) then you are likely to benefit the most from the increase in mortgage options. The product category that has seen the largest increase in new offers is the fixed rate, 5 year buy to let mortgage deals. Over the last month these have risen to 687 from 480.
When it comes to interest rates, investors that are looking for an 80% LTV mortgage on a 5 year, fixed rate basis will benefit from the lowest rates. Between May and June 2020, there has been an average reduction of 0.67% down to 3.65% from 4.32%.
Private Rentals in High Demand
The good news does not end there. A recent survey by Rightmove shows a 33% increase in tenant demand in May 2020 compared to May 2019. It is a good time to plan your next buy to let investment, and the wider choice of mortgage options makes it all even sweeter.
As always you need to do your homework to find the best mortgage deal for your next investment or current portfolio. A good mortgage broker can certainly help you here. They will be able to advise you on the best deal that suits your requirements.
