In recent weeks we have seen mainstream mortgages becoming far more competitive. Interest rates remain the same and now there is talk of another potential drop in rates too. Up until now we haven’t heard of low mortgage rates for anyone other than first-time buyers and regular homeowners. However judging by the latest developments in the market it would appear buy-to-let mortgages are now becoming more competitive as well.
Greater number of buy-to-let loan opportunities available
Those who are considering buying a property to rent out will be glad to know there is a greater number of possible mortgages to choose from now. With over 800 on the market today, this represents a rise of over 100 compared with the situation three months ago.
According to research compiled by Moneyfacts it would appear as if the fixed rate deals currently on offer are also the lowest the market has ever seen. The average across all deals available of this type currently works out to 3.82% in interest. The variable rate loans are not much different, with an average of 3.6% seen in this area.
Fixed rate deals have seen the biggest drops over the past few years. In 2012 the average would have been 5.03%. This fell to 4.68% in 2013 and dropped further to 4.22% in 2014 before reaching its current low point.
However the averages for variable rate deals have dropped significantly too. In 2012 the average would have been 4.46%. There was little movement the following year as it edged down slightly to 4.43%. The variable rates looked a little more encouraging last year when they reached 4.17% but it has only been in the last few months that we have seen a really encouraging change here.
Buy-to-let mortgage volumes rising significantly as well
This ties in with the huge degree of growth seen in the buy-to-let mortgage market in the final quarter of 2014. According to the Council of Mortgage Lenders there was a rise of 26% in lending to buyers looking to invest in the buy-to-let market in the last three months of last year. This rise was seen when comparing the third quarter to the fourth quarter. However when compared to the final quarter from 2013 the rise was even more marked – 32% in total, or almost a third.
Many people are apparently realising that buy-to-let could be a potentially good way of investing money. Rents are healthy and with savings rates very low at the moment too, thanks to the low interest rates, it makes sense that some would seriously consider investing in this area. There seems to be little chance of interest rates rising in the near future and the competitiveness among lenders could well see even better deals come to the fore soon as well. It is certainly well worth shopping around for the very best deals if you are considering going into the buy-to-let market. It looks as though there has never been a better time to buy.