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Mortgage News 104percent Increase In Buy To Let Mortgage Deals Over The Last Three Years 18471738

Written by Editorial Team

104% increase in buy to let mortgage deals over the last three years
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104% increase in buy to let mortgage deals over the last three years

27 October 2011 / by Colm Hebblethwaite

New statistics released by Defaqto have revealed that the amount of buy to let mortgage deals on the market has risen by 104% since 2008. 

In October 2008, there were 237 buy to let mortgage products for consumers to choose from; currently, there are 483 products on the market.

The analysis also found that there was considerable growth in the availability of intermediary-based buy to let mortgage products.  Currently, 86% of buy to let mortgage deals are available either through intermediaries only or through both intermediaries and providers directly.  In 2008, this figure was 70%.

In addition, the number of buy to let mortgage products available through intermediaries only has increased from 24% in 2008 to 60% currently.

Since 2008, seven more lenders have started to offer buy to let mortgages, bringing the current total to 63.  Of this group of lenders, 15 lenders will only offer products through intermediaries, 18 will only offer products directly to customers and 30 make their products available using a combination of the two methods.

Defaqto’s Insight Analyst for Banking, David Black said that the findings showed that the buy to let market is “becoming more buoyant”.

He also stated that the analysis revealed that intermediaries are becoming increasingly more important within the buy to let mortgage sector.

Black added that brokers’ “core strength” is their ability to provide advice, something that is especially valued in the buy to let market, “where people are likely to need more guidance when selecting a suitable mortgage”.




Buy to Let Mortgage Deal Selection

Provider

Type

Initial Interest Rate

Initial Term

Max LTV* Product Fee  
Fixed
Buy-to-Let

1.74%

Reverts to 4.49%

2

Years

60%

Yes More Info >
  • Call 0800 096 7962 to speak to an RBS mortgage specialist.
Fixed
Buy-to-Let

1.79%

Reverts to 4.99%

2

Years

75%

Yes More Info >
  • Available to all customers
  • Call 0330 333 3893 to speak to us about this deal
  • Product fee £995
Tracker
Buy-to-Let

2.65%

Reverts to 4.49%

2

Years

70%

Yes More Info >
  • Call 0800 158 2934 to speak to a NatWest mortgage specialist
Fixed
Buy-to-Let

2.12%

Reverts to 4.49%

2 Years

75%

Yes More Info >
  • Call 0800 158 2934 to speak to a NatWest mortgage specialist
Fixed
Buy-to-Let

2.26%

Reverts to 5.24%

5

Years

60%

Yes More Info >

Representative Example:


A repayment mortgage of £120,000 payable over 28 years and 1 month initially on a fixed rate for 2 years at 1.99% and then on the lender current variable rate of 3.69% (variable) for the remaining 26 years and 1 month would require 24 monthly payments of £465.20 and 312 monthly payments of £565.39 and one final payment of £565.19.

The total amount payable would be £189,357.67 made up of the loan amount plus interest (£68,161.67), booking fee (£999), completion fee (£30) and valuation fee (£197).

In this example the overall cost for comparison is 3.7% APRC representative.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.








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