Nelson Mortgages

Mortgage Next recently announced the launch of a discounted buy to let mortgage, which consumers considering getting into the buy to let sector may find beneficial. The mortgage is funded through Mortgage Express, and offers a fixed rate of 6.29% for two years. This equates to a discount of 0.96%. With buy to let mortgages often considerably more expensive than standard ones in terms of interest rates, this mortgage offer could attract attention from prospective buy to let investors.

There are some eligibility requirements in place for those interested in taking out this mortgage, in addition to the usual requirements. The minimum loan amount is £40,000 with a minimum rental income of 125%. Borrowers must be able to put down at least 15% by way of a deposit, and the cost of the mortgage is £1,999.

One Mortgage Next official said: “Despite all the downbeat talk about the housing market, the buy-to-let sector continues to show its resilience.” She added: “A recent report issued by the Association of Residential Letting Agents confirms that 94% of property investors are confident that tenant demand will remain high and 40% expect to make further investments this year. This product will appeal not only to investors who are contemplating taking advantage of lower house prices to increase the size of their property portfolios, but also landlords who are considering remortgaging their existing buy-to-let deals.”

Some experts now believe that there will be increased interest in buying properties to let as a result of falling house price expectations, so special deals on buy to let mortgages – particularly in light of current financial conditions – could prove very popular.

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