We’ve been saying for a while that the buy to let market has a lot of positives and that rental yields are growing as well as demand for tenants. There’s definitely a lot of upside in the market and with Paragon’s recent announcement of bumper profit growth many other lenders now want in on the party starting on the 11th July we cover the whole story.
The first to blink in July was NatWest which announced that it would be slashing it’s buy to let mortgage rates by up to 1.4%. A quite staggering reduction amounting to a quarter off payments on many products. Mark Bullard from NatWest was quoted in Mortgage Strategy underlining the Bank’s commitment to the Broker market which will continue to add to the reasons why landlords should always check rates with a specialist broker as well as on the high street.
On the very next day Mortgage Trust (part of the Paragon Group) announced some of the best buy to let rates so far with trackers starting at 3.69%. They too highlighted the importance of considering not just the headline rate but the other factors such as fees, product flexibility and criteria when selecting a product; they no doubt believe their new range of fourteen products is best placed on the market to meet these objectives.
The Mortgage Works – long the market leader in the buy to let mortgage world – quickly announced the next day that their existing range would be trimmed by 0.4% and their innovative ‘switch to fix’ products would be extended to landlords. This is quite a unique feature where landlords can benefit from low tracker rates now but with a view to taking a fixed rate in the future (and during the original tracker term which often isn’t available as an option). These changes are likely to shore up their position as leaders but it’s clear the competition is coming hard which is great news for landlords.
It’s not just the largest lenders with some great buy to let products, however. Platform earlier in the month announced some products that will be very interesting to landlords looking to refinance as they come with free valuations, standard legals and a £500 cash back. Naturally all that has to be weighed up against the rate on the products but it’s going to appeal to a lot of landlords with properties that weren’t economical to refinance before but a combination of the help with fees and growing rental yields and demand might make the prospect of raising some capital now very appealing.