Mortgage lenders offer more buy-to-let rates

Over the last week a number of buy-to-let mortgage lenders have lowered their rates and expanded their product range. Mortgage Trust, Birmingham Midshires and the Skipton Building Society all made their investment rates cheaper. It is now difficult to see how these rates can get much lower.

The Skipton Building Society has extended the availability of its buy-to-let mortgages as they look to increasing lending volumes. They now offer some of the lowest rates in the market and their cheapest two-year tracker mortgage is 3.24% - it is available to investors with a 40% deposit. They also have a two-year tracker at 3.59% and it is available to those with a 30% deposit. Both mortgages have a £1240 arrangement fee.   For investors wanting to know what their monthly payments will be, Skipton offer some competitive two-year fixes and they start at 4.29%. The arrangement fee is £1495.

Mortgage Trust has extended their product range and they now offer a two-year LIBOR tracker at 4.30% and a two-year fix at 4.89%. Both mortgages have a 1.75% arrangement fee and require a 35% deposit.

Aaron Strutt, a broker at Trinity Financial, says: “More lenders are looking at the buy-to-let sector and planning to come back in and one very large bank is set to re-enter soon. There is healthy competition between lenders and arrangement fees range from £999 to 3.5% of the loan amount. We are helping our clients to choose the right buy-to-let mortgage.”

June 3, 2011