Lenders loosen up on criteria
Lenders in the buy-to-let market have eased up on the amount needed for deposits, which has come as a huge relief and benefit to landlords. The past few months have seen lenders asking for a 30% or higher deposit with a fixed rate of 6.49% on all mortgages for let property, an amount that many landlords simply cannot afford to pay.
Lenders are now offering a better rate with some still asking for a 30% deposit but provide a 5.59% three year fixed rate.
However David Plaister, managing director of LetAssured has warned landlords to chose their lenders carefully, as there may be hidden costs and charges stipulated, which can end up costing extortionate amounts of money.
He said: "With workable interest rates and sensible deposits, landlords can once again start to consider property as a serious investment vehicle. Low property prices linked to sensible mortgage options is a positive mix for any property minded investor."
News brought to you by Insure My Let Property providing UK landlords with a high standard of let property insurance offering rent guarantee and legal fees.
March 12th 2010