The buy-to-let market & mortgages
The buy-to-let market has faced some significant challenges in the last quarter of 2022, but as the dust settles, we can see positive changes taking place. Many lenders are reducing their interest rates, with Coventry Building Society leading the way by cutting rates up to 1.00% across some of their BTL product range. This, coupled with improvements to stress test calculations by Leeds Building Society and other lenders, has helped clients' ability to borrow and is a step towards a return to normality.
As we move into the second quarter of the year, it's clear that lenders are competing more fiercely for good quality, low-risk business in the buy-to-let sector. This trend will likely continue, resulting in further enhancements that enable lenders to fill their pipeline for completion activities throughout 2023.
Currently, we have market-leading rates at 3.99% for a 2-year fixed, and rates starting from as low as 4.59% for a 5-year fixed mortgage. These are below the peaks at the back end of last year and again highlight the positive improvements that have taken place in just a short period of time.
However, we still feel there is still room for improvement, and there can be substantial differences between providers' offerings. Therefore, good quality advice has never been more relevant for this sector, but the outlook is certainly way more encouraging than many feared only a few months ago.
If you're interested in exploring your options and need expert financial services advice for your buy-to-let plans, give us a call or visit your local branch.
Adam from Grange Mortgage