Lowest mortgage rates in twenty years provide boost to property investors
- 22nd January 2015
- Buy-To-Let Property News
Bank of England figures show that mortgages are cheaper than at any time since records began
Investors thinking about purchasing a buy-to-let property will be encouraged by the latest borrowing statistics, showing variable and fixed rate mortgage lending rates down across the board.
With 40 per cent deposits buy-to-let investors can borrow at between 2 per cent and 3 per cent. Some lenders are offering rates of 3 per cent on buy-to-let mortgages with only a 25 per cent deposit.
Rates have not been this low since at least 1995, when government officials started recording the information. With lenders increasingly keen to offer mortgages many are now competing on price and offering great rates for borrowers.
With this change in the marketplace rising numbers of investors are taking advantage and completing the buy-to-let purchases they have been considering for a while.
Some economic commentators are reporting that the current low interest rate environment is likely to persist for some time to come, offering further encouragement to potential buy-to-let investors.
New pension rules announced in last year's Budget will open up further opportunities for property investors. Some investors have the opportunity to free up cash from their pensions which could be put towards funding their next buy-to-let property.
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