16 February 2015

THE intense competition in the home loan market has been underlined with the recent launch of a 10-year fixed rate buy-to-let mortgage. The Mortgage Works unveiled the only off-the-shelf loan at an interest rate of 4.99 per cent with a £995 fee. The mo

The loan echoes moves in the wider residential market to cut rates on long-term deals, as lenders try to appeal to borrowers wanting to lock in historic low interest rates.

The development was welcomed by Linley & Simpson as a way of offering buy-to-let investors extra choice to meet their individual needs.

Mortgage experts said the product would fill a gap in the market – with particular appeal for older investors looking for certainty for the last ten years of their mortgage term. Around 10 per cent of buy-to-let investors are looking for a longer term 'fix'. It offered an alternative to shorter-term loans, which suited those landlords who wanted the flexibility of being able to review and potentially refinance their borrowings.

The Property Ombudsman
Association of Residential Letting Agents
Association of Residential Letting Agents
On the Market January 2015
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