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Landlords Increasingly Looking for Longer-Term Fixed Rates
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
In such uncertain economic and political times, it’s no surprise that landlords are increasingly looking for longer-term fixed rates on their buy-to-let mortgages.
Understandably, the majority of private landlords are looking for greater security in the current climate, which may largely explain why many are looking for longer-term fixed rates on their mortgages.
The Melton Building Society has found that fixing for five years is particularly popular amongst landlords.
The cost of two, three and five-year fixed rate mortgages has dropped over the past 12 months, with research showing that most landlords are opting for five-year fixed rate buy-to-let deals.
Dan Atkinson, the Head of Sales and Marketing at The Melton, reports: “Landlords are increasingly looking for longer-term fixed rates since they have reached an all-time low.”
The Melton has recently launched a new five-year fixed rate deal, at 2.75%, for business buy-to-let customers with an interest coverage ratio (ICR) of 145% of the mortgage payment, calculated on an interest-only basis at 4%.
This new product has no application fee and a completion fee of £399.
The Melton offers a range of specialist buy-to-let mortgage products, including holiday buy-to-let and family buy-to-let.
The building society accepts first time buyers, first time landlords and non-owner-occupiers.
Atkinson adds: “The combination of a lower ICR calculation and fixed rate on this product makes buy-to-let from The Melton accessible to a wider range of landlords.”
If you’re a landlord looking for a buy-to-let mortgage, are you increasingly interested in longer-term fixed rates? And are you one of the many landlords that are choosing greater security by opting for a five-year fixed rate deal?
In the current uncertain political and economic times, it may be a wise move to lock into a favourable buy-to-let mortgage rate on a longer-term fixed deal. Let us know your thoughts on investing in today’s climate.
