The general upturn in the housing market has been reflected in mortgage lending for buy to let investments.
Specialist buy to let lender Paragon Mortgages anticipates that the lending market wide in 2014 will be in excess of £20 billion. However this will only take buy to let lending back to the same level as ten years ago.
Within that time the scale of the private rented sector has increased by 80%, so more growth in the availability of buy to let finance can be anticipated.
A rise in interest rates is likely in 2015 or even in late 2014 if the Bank of England take an optimistic view on the UK economy, so now is good time to look for a fixed interest mortgage.
Some very attractive deals are available with interest rates of less than 3% for a two year fix, less than 4% for a three year fix and less than 5% for a five year fix. As ever the fees associated with taking out a mortgage also need to be taken into account.
So where to find the best deal?
The obvious first steps are to contact your existing lender or a local mortgage broker. There are also a number of specialist buy to let brokers and lenders in the market for investors seeking a higher loan to value mortgage or a shorter term loan for a major renovation of a property.
In recent months Kent Reliance have relaxed their criteria for minimum incomes and will lend up to 85% on buy to let, including HMOs. Underwriters will look at the merits of any individual case and agree or decline, although through a broker a discussion can be possible. Kent Reliance have no maximum portfolio size and a maximum loan size of £1,000,000 for purchases.
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