Boost for landlords as availability of buy-to-let mortgages increases
Accord, part of Yorkshire Building Society, is the latest lender to launch into the buy-to-let market for the first time. With increased demand from investors keen to cash in on rising rents, lenders are returning to the sector, or starting to lend.
This is resulting in lower buy-to-let mortgage rates and an easing of criteria, underlining the rude health of the sector. However, landlords must still pay a premium on the rate compared with residential deals and need a bigger deposit than owner-occupiers. Most lenders require a deposit of between 25 and 40 per cent, with the best rates typically available to those with the largest down payments.
Fees can still be expensive - as much as 3.5 per cent of the mortgage amount - so landlords should work out the total cost when comparing products.