An increasing number of landlords are opting for longer term fixed rate mortgages, according to one of the country’s leading mortgage experts.
Many buy-to-let investors are looking to lock into long-term deals in order to take advantage of record low borrow rates, according to the director of mortgages at the Mortgage Trust, John Heron.
“Longer term fixed rates are becoming increasingly popular, providing landlords with greater cost certainty as they look to manage the introduction of the new tax changes,” he said.
To help cater for growing demand, the Mortgage Trust has launched a new limited edition five-year fixed rate buy-to-let mortgage product for individual landlords wanting finance for single, self-contained units.
The rate is 3.45% up to 75% loan-to-value (LTV) on loans up to £500,000 and up to 70% LTV on loans up to £1m.
The product includes a free valuation for a limited time and has an interest coverage ratio starting at 125% at 4%.
“With interest rates still close to historic lows, now is a good time for landlords to consider the potential advantages of locking in for a longer period,” Heron added.