There has been a notable change in direction in the mortgage rate war, which has seen the pendulum shift from mainstream to buy-to-let (BTL).
Latest figures released by research group Moneyfacts reveal the number of BTL mortgage deals have soared within the past two years, where there has been a significant rise in low-rate deals.
According to the data, there were a total of 476 BTL products available in April 2013, increasing to a current total of 745, which is positive news for landlords and those looking to enter the buy-to-let arena.
What is more, the number of two year fixed rate deals priced below 3% has climbed from just five in April 2013 to currently stand at 83, whereas five year fixed rates have also followed suit, with approximately 143 now falling below 5%.
Rates across the board have also become highly attractive, with the average two year fixed rate deal now standing at 3.45% and the average five year at 4.25% with several providers now entering the fray, the market is becoming extremely buoyant, offering highly competitive deals.
A notable example includes Natwest, who have introduced a round of cuts, including a two year fixed rate reduced from 3.25% to 3.04% with no product fee on a loan to value (LTV) of up to 75% and a fee-free 75% LTV five year fixed rate deal at 4.13%.
Taking into account just how poor savings rates are at present, it is little surprise BTL is becoming a more viable option. Coupled with the new “pension freedoms”, more potential landlords could dip into their pension pot and jump onto the property ladder.
If you are thinking of making this move, especially for older borrowers where lenders may impose certain age limitations, seeking financial advice would allow you to have access to thousands of available deals.
To find out just how the market conditions and pension reforms are affecting the demand for BTL mortgages, read our recent article on why more are turning to buy to let property.