Santander has launched what is believed to be the first ever one-year fixed rate buy-to-let mortgage.
The short-term deal, which is available at up to 75% loan-to-value (LTV), comes with no product fees and a rate of 2.25%.
Although research shows that an increasing number of landlords are choosing five-year fixed rate deals, which offer greater security in the existing uncertain economic climate, Santander’s one-year product is sure to appeal to some landlords.
David Hollingworth of L&C Mortgages told commented: “The addition of a different product is always a positive thing as it can help plug a gap and meet the individual borrower's needs.”
“However, I'm not convinced that we will see landlords queuing up in big numbers for a short-term deal like this.
“I expect more to be looking to take advantage of the currently low interest rates on offer to shore up their finances over the medium term.”