It has been a busy week of rate withdrawals in the buy-to-let market. Kensington Mortgages no longer offer investment mortgages to borrowers with a 15% deposit and The Post Office has stopped lending to buy-to-let investors.
The Post Office offered some excellent buy-to-let rates and they didn’t require a huge deposit. They also had some of the lowest arrangement fees.
Kensington say that they have been particularly busy and that they have hit their lending targets.
The Post Office intends to concentrate on first-time buyers and remortgage customers. They were offering mortgages if you had a 20% deposit.
Aaron Strutt, a broker at Trinity Financial, says: “There are a couple of lenders offering mortgages if you have a 20% deposit. The Mortgage Works has a two-year fixed rate at 4.99% but the arrangement fee is 3.5% of the loan amount.”
“There are more options available if you have a 25% deposit and the rates are very competitive. Birmingham Midshires has a two-year fix at 4.84% and it has a 1.25% arrangement fee. Investors with a 35% deposit can access Godiva’s two-year flexi fixed rate at 3.99%. It has a £950 arrangement fee and the lender will also provide a free property valuation.”
September 22, 2011