Thursday 13 February 2014

Buy-to-Let Conveyancing on the Increase and Set to Continue

Following on from a very active fourth quarter, 160,900 buy-to-let conveyancing purchases involving a mortgage took place in 2013, a jump of 23% compared to 2012. The increase has been fuelled by Buy-to-let landlords benefiting from record low mortgage rates. Competition amongst lenders has seen fixed interest deals at a new low, brokers say. Mortgage Works, part of the Nationwide Building Society, now offers the lowest two-year fixed rate at just 2.49 per cent for borrowers with a 40 per cent deposit.
The trend is set to continue as The Post Office has re-entered the buy-to-let market, nearly two and a half years after pulling out of the sector. The deals, which start tomorrow, offer a selection of two, three and five-year mortgages at 60 per cent and 75 per cent, with rates starting at 2.98 per cent. It’s mortgages are funded by Bank of Ireland and as a result I expect to see some changes to the CML Handbook requirements for this lender in the near future.

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