Tue, 02 Jul 19
The number of buy to let products for first time landlords has risen to an all-time high.
Data from independent mortgage market monitor Moneyfacts shows there were 645 deals for first time landlords in 2014 - today there are 1,405.
There have been 137 new products in the past year alone despite the challenging market and regulatory conditions surrounding buy to let.
Moneyfacts spokesperson Rachel Springall says: “While the rise in choice is good news to prospective landlords, the financial strain of recent tax changes may be starting to show on those who are currently invested in property, according to recent data from the Office of National Statistics.
“The ONS data highlighted that London private rental prices rose by 0.9 per cent in the 12 months to May 2019, which is the highest annual growth seen since September 2017.
“This rise may well be linked to the staggered loss of mortgage interest tax relief, which in turn has seen landlords seeking out other ways to boost their income” she adds.
“Borrowers must ensure they weigh-up the true cost of any deal before they commit; for example, choosing the lowest two-year rate in the market from Barclays Mortgage at 1.46 per cent would cost £20,901 in repayments after the first two years, which includes its £1,795 product fee.
“However, if they opted for a deal with a lower fee, such as the mortgage from Post Office Money priced at 1.48 per cent with a £1,495 product fee, they would have saved £255, as the repayment would be £20,646 over two years.”
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