The Times - Why two-year fixes on buy-to-let mortgages may cost landlords more
More landlords are opting for two-year fixed-rate deals as they expect mortgage rates to fall in that time — but it means accepting hefty fees of up to 7 per cent of their loan.
Paragon Bank, a big buy-to-let lender, said that 23 per cent of mortgage applications it received last month were for two-year fixed-rate deals, 66 per cent for five-year fixes and 11 per cent for variable rates. Last July, 95 per cent of applications were for five-year fixes.
Aaron Strutt from Trinity Financial told The Times: “When 2.5 per cent fees were first applied a few years ago, that was seen as quite shocking. Now they’re up to 7 per cent, but there are a lot of landlords still taking them.”
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